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E-Verify Update and Multi-State Survey

June 13, 2016

E-Verify Update: Tennessee Amends its E-Verify Act

Author: SuperUser Account/Wednesday, July 13, 2016/Categories: Compliance Corner

Overview.   U.S. law requires companies to employ only individuals who may legally work in the United States – either U.S. citizens, or foreign citizens who have the necessary authorization. E-Verify is the Internet-based system that allows businesses to determine the eligibility of their employees to work in the United States by comparing information from an employee's Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility.  For most U.S. employers, use of the E-Verify system is voluntary.  However, more and more states are beginning to mandate its use by both public and private employers.

The Tennessee Lawful Employment Law Act (“E-Verify Act”) was recently amended in an effort to minimize the compliance burden on small businesses, and also to strengthen the authority of the Tennessee Department of Labor (TDOL) to pursue violators.

Effective Date.  Amendments take effect, January 1, 2017.

Details.  Under the current law, all private employers with six or more employees must register and utilize E-Verify or request and maintain one of the listed identity/employment authorization documents from a newly hired employee or non-employee. Click here to view a list of these documents.  In determining the number of employees, the employer must count all employees whether employed in Tennessee or outside of Tennessee.

As amended, the E-Verify Act will require private employers with 50 or more employees to enroll in the E-Verify program. The new E-Verify Act will also require these employers to verify the employment eligibility of new hires through the program. Employers who knowingly fail to enroll in the E-Verify program will be subject to a $500 penalty. An employer who fails to enroll after having received notice from the TDOL will be subject to an additional $500 daily penalty. In addition, the amended E-Verify Act will allow the TDOL to conduct an investigation to determine an employer's compliance. Employers with six or more (but fewer than 50) employees will remain subject to the current law, which provides the alternative of utilizing E-Verify or requesting and maintaining certain identification documents (i.e., unexpired passports, birth certificates, or state-issued identification).

Call to Action.  Employers with operations in Tennessee should prepare to comply with the amendments stated above.  In fact, all employers may wish to take this opportunity to review the E-Verify laws in all jurisdictions of operation to ensure compliance. For your convenience, a multi-state survey to this effect is attached.

Attachment. Attached to this Alert is a E-Verify Laws Survey to help you understand and meet your compliance obligations.

Please contact your Relationship Manager or Service Team with questions about this topic.