E-Verify, the federal electronic system for verifying new hires’ work eligibility, has been a focal point in employment compliance discussions. A government shutdown, beginning October 1, 2025, led to E-Verify being temporarily suspended, leaving employers unable to process new cases or resolve mismatches. Although the system was restored after several days, the outage highlighted the risks of relying solely on E-Verify for compliance and the need for contingency planning.
Meanwhile, states are expanding E-Verify’s role. Iowa’s Governor Kim Reynolds issued an executive order on October 8, 2025 requiring all state agencies to use E-Verify and the SAVE system for employment and professional licensing. This action, prompted by incidents of unauthorized employment in public schools, reflects a broader trend of states tightening verification requirements and increasing scrutiny on employers.
In a recent discussion, John Connolly, Senior Managing Director at Guidepost Solutions and a veteran advisor on employment verification, underscored the need for employers to fully understand both the strengths and limitations of E-Verify when shaping their compliance strategies.
E-Verify’s Vulnerabilities: Lessons from the Old Orchard Beach Case
The limitations of E-Verify were brought into sharp focus by a May 2025 case in Maine. In this incident, a police officer was hired after passing E-Verify but was later arrested for overstaying his visa. Federal officials criticized the town’s reliance on E-Verify, highlighting that the system can be fooled by identity theft or fraudulent documents.
Connolly explains, “The government E-Verify system is not foolproof, right? It’s vulnerable to identity theft, you know, which has been proven. And you know, it’s not a perfect system.” He stresses that E-Verify should be considered one part of a broader compliance strategy, not a guarantee of protection. Employers must be able to demonstrate that they have met all legal requirements—completing Form I-9, carefully reviewing documents, and using E-Verify as an additional measure.
At the end of July, Maine House Democrats issued a statement about the incident, urging a comprehensive federal review of the E-Verify system and DHS authorization procedures that enabled Officer Evans to begin employment in good faith in May 2025.
Building a Robust Compliance Program: Beyond E-Verify
Connolly cautions that some employers mistakenly believe E-Verify alone provides full legal protection. He explains that while E-Verify is a valuable tool, it should not be the only step in the hiring process. Employers must complete Form I-9, Employment Eligibility Verification, review all supporting documents, and use E-Verify as an additional measure. This comprehensive approach helps protect organizations in the event of system errors or enforcement inquiries.
Connolly cautions against relying solely on E-Verify or Form I-9 when verifying employment eligibility. Instead, they recommend a holistic compliance approach that includes cross-checking job applications, address and work history, and using free online tools to validate Social Security numbers and other personal data. “Don’t just look at the I-9 as a standalone document,” he explained. “Look at all the information the person has provided—does it add up? Does it make sense?” This layered strategy helps employers detect inconsistencies and reduce immigration-related risks.
For small businesses with limited resources, Connolly points to free resources like USCIS’s I-9 Central, which offers guidance on completing Form I-9 and answers to frequently asked questions. He also mentions that E-Verify offers training materials that can be tailored to different organizations, helping employers stay up to date on best practices.
ICE Audits: Preparation and Best Practices
To strengthen immigration compliance, Connolly recommends employers conduct independent third-party audits of their Form I-9s and hiring practices. The U.S. Immigration and Customs Enforcement (ICE) provides guidance for employers conducting internal employment verification Form I-9 audits. Although Connolly advocates for businesses conducting audits of employment eligibility, he cautions that internal reviews can result in missed errors due to bias or lack of expertise, especially when HR staff audit their own work.
“If you bring in an independent third party, that’s just what they are—they’re independent,” Connolly said. “They’ll come in and tell you what the errors are, what you need to correct.” He notes that this proactive approach is important, as ICE audit notices prohibit post-notification corrections and give employers only three days to produce documentation, regardless of company size.
Connolly recommends annual audits for most employers, but notes that those with high turnover or seasonal hiring may need to audit more frequently, ideally after peak hiring periods.
Navigating E-Verify During Shutdowns and Outages
The October 2025 shutdown revealed how quickly E-Verify can become unavailable. Connolly explained that employers using electronic I-9 systems can queue verification requests, which will be processed automatically when E-Verify resumes. Those using paper systems must keep track of pending verifications and submit them within three days of E-Verify coming back online.
Connolly believes that states with E-Verify mandates provide similar leniency during system outages, allowing employers to catch up once the system is restored. Federal contractors are also typically given a grace period to comply when E-Verify is unavailable.
New Developments: E-Verify Notifications for Work Authorization Changes
A recent change in E-Verify’s notification process has important implications for employers. Connolly noted that the government now notifies employers directly when an employee’s work authorization status changes, such as when temporary protected status or parole is revoked.
Previously, only employees received these notifications. Now, employers are alerted if any workers they have submitted to E-Verify lose their authorization, placing a greater responsibility on companies to monitor and respond to these updates.
Connolly admitted that in his decades of professional experience on this topic, he had not observed this type of change regarding E-Verify’s notification process. That said, he suspects that the change will continue through the rest of the Trump Administration.
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