On October 1, 2025, a federal government shutdown disrupted many U.S. federal services, including the USCIS's E-Verify program, an essential electronic tool that many employers use to verify the work eligibility of new hires. This unprecedented disruption has created significant operational challenges for employers nationwide, particularly those in industries with high turnover rates or seasonal hiring needs.
While E-Verify operations have been suspended, the legal obligations to comply with Form I-9 requirements remain fully in force, requiring employers to maintain vigilance despite the disruption.
The shutdown's timing is particularly challenging, as it coincides with the fourth quarter hiring season when many businesses are onboarding temporary workers and preparing for year-end staffing adjustments. Understanding the nuances of what has changed—and critically, what has not—is essential for HR professionals and business leaders navigating this uncertain landscape.
The shutdown has caused a full suspension of the E-Verify system, meaning employers cannot create or process new cases or access customer support. This includes the inability to:
As explained by Seyfarth Shaw LLP, employees facing Tentative Nonconfirmations (TNCs) cannot resolve these discrepancies until the system is restored. This creates a particularly difficult situation for employees who may be in limbo regarding their employment status. USCIS has announced that E-Verify deadlines are tolled during this period, giving employers extended time to submit cases once service resumes. The tolling mechanism essentially pauses the clock on all time-sensitive E-Verify requirements, ensuring that neither employers nor employees are penalized for delays beyond their control.
Importantly, employers are prohibited from taking adverse employment actions against employees due to delays caused by the shutdown. This means that terminations, suspensions, or limitations of work assignments based solely on the inability to complete E-Verify processing would constitute a violation of anti-discrimination provisions. Employers must continue to allow affected employees to work while maintaining appropriate documentation of the circumstances.
Despite this suspension, the basic Form I-9 rules remain unchanged—Section 1 must be completed by the employee's first day, and Section 2 verified within three business days of hiring. The government shutdown does not alter these deadlines, confirming that Form I-9 compliance obligations continue regardless of E-Verify availability.
Employers should maintain accurate paper or electronic I-9 files, as these serve as the primary proof of compliance during an Immigration and Customs Enforcement (ICE) audit. The lack of E-Verify access does not reduce the importance of properly completed and retained I-9s.
USCIS recommends that federal contractors coordinate with contracting officers to seek possible deadline accommodations due to the shutdown. Federal contractors often face additional E-Verify requirements under the Federal Acquisition Regulation (FAR) E-Verify clause, and these contractual obligations may need to be renegotiated or modified during the disruption. Proactive communication with contracting officers can help establish reasonable expectations and document good-faith compliance efforts.
Alternative remote verification procedures for Form I-9 documentation remain permissible throughout the shutdown, which can help employers continue compliance efforts with reduced disruption. These remote procedures, initially expanded during the COVID-19 pandemic, allow employers to examine documents via video conference or other remote methods when employees cannot appear in person. However, this flexibility is only available to companies that are enrolled in and in good standing with E-Verify. It is particularly valuable for organizations with distributed workforces or those continuing hybrid work arrangements.
Maintaining clear communication with employees regarding any delays and thorough documentation of hiring actions during this period are prudent steps. Transparency helps manage employee expectations and demonstrates the employer's commitment to compliance despite circumstances beyond their control. Consider providing written communications that explain:
During uncertain times like these, technology solutions such as Clear I-9 play a vital role in helping employers maintain compliance. HRlogics highlights that Clear I-9 is a cloud-based platform that streamlines I-9 form management with features like automated deadline alerts, secure document storage, and compliance with DHS remote verification guidance.
Key Features and Benefits
The platform integrates with E-Verify when available and supports multi-location and remote hiring workflows, reducing the risk of costly errors and easing administrative burdens. Specific capabilities include:
Clear I-9's audit-ready documentation, version control, and expert support ensure that employers are prepared for any future government inspections or audits. The platform maintains a complete audit trail of all actions taken on each form, including who made changes, when modifications occurred, and what the previous versions contained. This level of transparency is invaluable during ICE inspections, as it demonstrates systematic compliance efforts and good-faith adherence to regulations.
Its security protocols help protect sensitive employee data—an increasingly important consideration during disruptions that require remote work and decentralized operations. With cyber threats continuing to evolve, protecting personally identifiable information (PII) such as Social Security numbers, dates of birth, and immigration documents is both a legal obligation and a business imperative.
Once government functions and E-Verify services resume, employers should be ready to handle any backlog of verifications and promptly submit deferred cases. As the HR professional responsible for compliance, you should start preparing now:
Create Your Backlog Inventory: Compile a list of all employees hired during the shutdown who require E-Verify processing. Include hire dates, positions, and any special circumstances. This inventory will be essential when the system comes back online and you're racing against other employers nationwide to submit cases.
Develop a Prioritization Plan: Determine which cases you'll submit first. Consider factors like hire date, employee category, and whether they're federal contract employees. Having this plan ready means you can act immediately rather than scrambling when services restart.
Prepare Your Team: Ensure multiple HR staff members are trained and ready to process E-Verify cases. The system will likely experience heavy traffic when it reopens, so having all hands on deck will help you work through the backlog efficiently.
Leverage Clear I-9 Automation: Clear I-9 will automatically process all backlogged E-Verify cases once services resume — no manual action required. This ensures your team stays compliant without wasting hours on data entry or resubmissions.
As noted by the Hilb Group, maintaining detailed records of all hiring activity during the shutdown and communications with employees mitigates risks and helps demonstrate good-faith compliance should federal audits recommence. Your documentation should include hire dates, completed I-9 forms with verification dates, employee communications about delays, and logs of your attempts to access E-Verify.
Unlike audits which are temporarily paused, penalties for I-9 violations remain significant and must be diligently avoided. This isn't the time to let I-9 completion slide—even minor violations can result in substantial fines, and patterns of non-compliance carry escalating consequences.
The October 2025 shutdown serves as a reminder of the importance of having robust compliance systems that can function independently of government services. While E-Verify provides an additional layer of verification, it is supplementary to—not a replacement for—the foundational I-9 process. Employers who have relied heavily on E-Verify without maintaining strong underlying I-9 practices may find themselves particularly vulnerable during this disruption.
Organizations should use this shutdown as an opportunity to evaluate their overall I-9 compliance posture:
These questions can help identify vulnerabilities that may need to be addressed through additional training, process improvements, or technology investments.
Need a more comprehensive assessment? Download our I-9 Compliance Checklist for Employers to conduct a detailed self-audit of your organization's compliance practices. This practical checklist covers data security, onboarding procedures, offboarding requirements, ongoing compliance habits, and training protocols—with a scoring system to help you identify exactly where your risks lie.
Conclusion
The 2025 government shutdown presents challenges, but does not excuse employers from their fundamental I-9 responsibilities. Timely I-9 completion remains mandatory, and federal shutdown-induced delays in E-Verify processing require careful documentation and communication.
The situation underscores a critical principle: while E-Verify is a valuable verification tool, the core of employment eligibility compliance rests on the proper and timely completion of Form I-9. Employers cannot allow the suspension of supplementary services to compromise their adherence to these fundamental obligations.
Leveraging compliance tools like Clear I-9 can empower employers to reduce errors, maintain regulatory readiness, and navigate these operational challenges with confidence. As the shutdown continues and its eventual resolution approaches, organizations that have maintained disciplined I-9 practices and thorough documentation will be best positioned to resume normal operations without compliance gaps or regulatory exposure.