The Complete Guide to I-9 & E-Verify

Why fines are rising, what changed on the form, and where E-Verify is (and isn’t) required 

If you handle hiring or HR, you have likely noticed ongoing shifts in I-9 and E-Verify regulations. For 2025, penalties have escalated, the I-9 form has been revised, and more states mandate E-Verify under specific conditions. 

Here's a summary of what’s changed, why it matters for your business, and the key steps you can take for compliance. 

Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization’s internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies. 

Why I-9 Compliance Fines Keep Rising 

Congress requires federal agencies to adjust civil penalties annually for inflation. The Department of Homeland Security (DHS) finalized 2025 adjustments on January 2, 2025. Employment-verification penalties enforced by Immigration and Customs Enforcement (ICE) include: 

• Knowingly hiring/continuing to employ an unauthorized worker (per unauthorized worker): 
  – First offense: $716–$5,724 
  – Second offense: $5,724–$14,308 
  – Third or subsequent: $8,586–$28,619. 

• I-9 paperwork violations (per form): $288–$2,861. 

(Federal Register) 

These penalty ranges apply to violations assessed after January 2, 2025, for offenses occurring after November 2, 2015. According to ICE requirements, employers must produce I-9s within three business days of receiving an inspection request. You must also retain each I-9 for three years after the date of hire or one year after the employee's last day of work—whichever is later. (ICE) 

What Changed on the Form I-9 (and Why it Matters) 

Multiple editions of Form I-9 exist, so it’s important to ensure you use a current edition for every hire. In 2025, changes to each form included the following: 

• Edition 08/01/23 (expires 05/31/2027) 
  • Form shortened to one page; instructions streamlined. 
  • Added a checkbox to indicate use of DHS’s remote/alternative document exam (for E-Verify participants who follow the required steps). 
• Edition 01/20/25 (expires 05/31/2027) 
  • Minor wording updates to match statute; Section 1, status #4 now reads “An alien authorized to work.” 
  • Clarified descriptions for two List B documents. 
  • DHS Privacy Notice and related instructions refreshed. 
  • E-Verify/E-Verify+ reflect the new wording (as of April 3, 2025); if an older I-9 shows “A noncitizen authorized to work,” select “An alien authorized to work” when creating the E-Verify case. 

(USCIS) 

With the latest I-9 editions in place, the next step is understanding how E-Verify complements your process by confirming work authorization and enabling compliant remote review. 

E-Verify 101: What it is—and what it isn’t 

What it is. E-Verify is a free, web-based DHS/USCIS system that compares data from an employee’s completed Form I-9 against DHS and Social Security records to confirm employment eligibility. Most results return quickly; if there’s a mismatch, employees have a chance to resolve it. (E-Verify) 

What it isn’t. E-Verify does not replace the I-9, cannot be used to pre-screen applicants, and—unless you're a covered federal contractor—is generally only for new hires within three business days of starting. Federal contractors subject to the FAR E-Verify clause have special rules, which sometimes apply to existing employees under the contract. (U.S. Department of Homeland Security) 

Remote verification is now permitted for E-Verify participants. Since August 1, 2023, employers enrolled in E-Verify and in good standing may use the optional remote examination procedure at E-Verify hiring sites if they follow specific steps. Apply the remote option consistently to comply with anti-discrimination laws. This approach is especially effective for remote and distributed teams. (USCIS) 

E-Verify vs. E-Verify+ 

E-Verify is the standard, free DHS system employers use after Form I-9 to check new hire data. E-Verify+ combines I-9 and E-Verify in one digital process. The employee does the I-9 directly in E-Verify, uploads documents using a secure link, and the employer reviews and finalizes the case. Employers can use the traditional process, E-Verify+, or both. (E-Verify+) 

Both options share the same verification purpose; however, E-Verify+ offers greater speed, privacy, and convenience for online management. 

Where E-Verify is Required 

E-Verify is voluntary at the federal level except for covered federal contractors (FAR 22.18). Still, many states require E-Verify in some way. Always confirm the rule where work is performed: 

States requiring E-Verify for (almost) all private employers 

• Alabama – All employers. (immigration.alabama.gov) 
• Arizona – All employers under the Legal Arizona Workers Act. (Azag) 
• Florida – Public agencies and private employers with 25 or more employees. (Florida Dept. of Revenue) 
• Georgia – Private employers with 10 or more employees. In addition, proof of E-Verify use is required to obtain/renew local business licenses/occupational tax certificates. (Justia Law) 
• Mississippi – All employers under the Mississippi Employment Protection Act. (MDES) 
• North Carolina – Most private employers with 25 or more employees. (North Carolina Department of Labor) 
• South Carolina – All employers. (SCLLR) 
• Tennessee – Employers with 35 or more employees. (Tennessee State Government) 
• Utah – Private employers with 150 or more employees. (Utah Division of Corporations) 

States commonly requiring E-Verify for public employers/contractors 

• Colorado, Idaho, Indiana, Louisiana (public works contractors), Michigan, Minnesota, Missouri, Nebraska, Oklahoma, Pennsylvania, Texas, Virginia, and West Virginia. (Equifax) 

In some states, such as Georgia, E-Verify is directly linked to the issuance of business licenses, and this requirement is often enforced during renewal periods. Human resources and licensing or finance teams should collaborate to ensure compliance. 

Note: This information is current as of the date of this blog’s publication and is provided for general informational purposes only. E-Verify requirements can change frequently, and this list may not cover every scenario or state-specific nuance. Always consult state’s official government website or legal counsel to confirm requirements that apply to your specific situation. 

How E-Verify Connects to Your I-9 Risk Profile 

E-Verify can play a crucial role in reducing your compliance risk for Form I-9, particularly as enforcement intensifies. Here’s how it fits into your overall I-9 strategy: 

• While E-Verify isn’t foolproof, it reduces the risk that forged documents create a “knowingly” hiring violation (which brings the highest fines). 
• It is much easier to respond quickly if ICE asks for paperwork within that tight three-day window when you have E-Verify case data, properly stored I-9s, and required document copies. 
• Only E-Verify participants in good standing can use the remote examination option. This is a key reason multi-state and hybrid employers enroll, even when not legally required. 
• If you pursue federal work, the FAR E-Verify clause requires E-Verify for new hires and for some existing employees assigned to the contract. 

The Bottom Line 

In 2025, rising I-9 penalties and evolving employment structures make strong compliance practices more important than ever. Employers subject to state mandates—or simply seeking more efficient hiring processes—can benefit from thoughtful E-Verify implementation as part of a broader I-9 strategy. 

Staying on top of changing requirements, state-by-state rules, and strict documentation deadlines can be challenging. Partnering with a payroll and HR provider like Greenshades helps streamline compliance by centralizing I-9 management, integrating E-Verify where appropriate, and keeping records organized and audit-ready. With consistent processes and quick access to required documentation, HR teams can reduce the risk of costly fines and focus on supporting the workforce. 

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