In the world of employment verification, confusion runs deep—especially around the relationship between Form I-9 and E-Verify. Many employees mistakenly believe that submitting information to one system means they’ve satisfied both requirements, while some employers assume that enrolling in E-Verify automatically ensures I-9 compliance.



Let’s clear the air.

Form I-9: Required for Everyone

Every employer in the U.S. is legally required to complete Form I-9 for each W-2 new hire—no exceptions. This form verifies a worker’s identity and employment eligibility by requiring documents that prove the employees eligibility to work in the United States.

Failing to properly complete or retain I-9 forms can result in hefty penalties. In fact, in 2017, Asplundh Tree Experts, Co., one of the largest privately held companies in the U.S., was fined $95 million—the largest immigration-related penalty ever—for I-9-related violations, including rehiring workers known to be unauthorized. Read the ICE Press Release on Asplundh Fine to find out more.

E-Verify: Required Only in Some Cases

E-Verify, on the other hand, is an internet-based system run by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). It compares information from the I-9 against federal records to confirm work eligibility.

States Where E-Verify Is Required by Law

E-Verify is not required in all states, but federally mandated for certain federal contractors and required by law in several states, including:

• Alabama
• Arizona
• Florida
• Georgia
• Mississippi
• North Carolina
• South Carolina
• Tennessee
• Utah

In these states, if you're an employer (and in some cases, even a subcontractor), E-Verify is mandatory. In other states, it’s optional—but increasingly encouraged.

Additional States with E-Verify Requirements

Beyond the states with blanket mandates, several others have more specific E-Verify requirements for certain sectors or circumstances. These requirements often apply to public employers, government contractors,  or businesses seeking state-funded incentives.  Examples include:

• Indiana: State and local government agencies, as well as contractors, are required to use E-Verify.
• Texas: E-Verify is mandated for state agencies and contractors, helping ensure legal workforces within government operations.
• West Virginia: Public employers must use E-Verify to verify new hires' employment eligibility.

Other states with targeted E-Verify requirements include Idaho, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Oklahoma, Pennsylvania, and Virginia. In these states, E-Verify is often mandated for public employers, contractors, or as a condition for public contracts or participation in state-funded incentive programs.

Key Differences at a Glance

Do You Need an I-9 Compliance Tool If You Use E-Verify?

Absolutely!

E-Verify is not a substitute for Form I-9. You still must complete and retain I-9s correctly—and doing that manually or inconsistently can lead to expensive errors. E-Verify only begins after a compliant I-9 has been completed. If you’re relying solely on E-Verify and not managing I-9s correctly, your business is still at risk.

Avoid the Risk with Clear I-9

Managing I-9s manually—or relying on basic, outdated tools—can leave you vulnerable to audits, fines, and processing errors. That’s where Clear I-9 comes in.

Clear I-9 is a cloud-based solution that:

• Streamlines and automates the entire I-9 process.
• Seamlessly integrates with E-Verify.
• Keeps you audit-ready with secure digital storage and error-checking logic.
• Simplifies compliance across all states, including those with mandatory E-Verify laws.

Take the Next Step in Compliance

Don’t wait for an audit to find out your I-9s aren’t up to par.

Start protecting your business today with Clear I-9. Request a demo now!