The consequences of non-compliance extend beyond fines and can result in damage to employer reputation and trust, putting your business’ integrity at stake. As an attorney-led company, Doherty Staffing Solutions (Doherty) understands the importance and significance of compliance with employment laws. Our experts share updates and insights on employment-related policies to ensure clients navigate these complexities confidently and within the guardrails of compliance.
E-Verify and background checks are essential for hiring compliance. Together, these valuable resources help companies ensure work eligibility and assess candidate suitability for a role, respectively. In this article, we will share helpful information regarding E-Verify and background checks, including what they are, best practices, risks of non-compliance, and more!
E-Verify: What it is & Why it is Important
E-Verify is an online federal verification system used to confirm employment eligibility in the United States. Information entered on an employee’s I-9 form is compared to the records in the U.S. Department of Homeland Security (DHS) and the Social Security Administration’s (SSA) systems to verify that the employee is authorized to work in the United States. This verification process is a free online system that returns results quickly, often within three to five seconds.
E-Verify is a critical tool for employers to ensure compliance with federal employment eligibility laws. By electronically verifying the information provided on an employee’s I-9 form against government databases, E-Verify helps confirm that new hires are authorized to work in the United States. This system not only protects businesses from the legal and financial consequences of hiring unauthorized workers but also reinforces compliant hiring practices. Adoption of E-Verify has increased rapidly, with over one million employers in the U.S. using this system today. Implementing E-Verify demonstrates a company’s commitment to compliance and builds trust with clients, employees, and the broader community.
Why Businesses Should Ensure Staffing Partners are Compliant with E-Verify
When partnering with staffing companies to supplement your contingent workforce strategy, it is crucial to confirm their compliance with E-Verify. Non-compliant staffing providers can expose your business to significant risks, including fines, legal challenges, and reputational damage. Moreover, if a staffing partner’s practices lead to unauthorized hires within your workforce, your business could face the consequences, even if the non-compliance originated externally.
Verifying that staffing partners use E-Verify also ensures that your organization upholds compliant hiring practices and avoids inadvertently contributing to unauthorized employment. With workforce dynamics becoming increasingly complex, working with staffing providers who demonstrate thorough compliance safeguards your operations and strengthens your brand’s employer reputation.
When is E-Verify Required?
While the I-9 form is mandatory, E-Verify is voluntary for most employers. However, E-Verify is required for all federal contractors, who must be enrolled within 30 days of the award date of the contract. Additionally, within 90 days of enrollment, all employees working on the contract must be verified to be in compliance. All new employees added to the contract must be verified within three days of the hire date.
It is important to note that some states require that E-Verify be used. In this case, the same rules for federal contractors apply. To view the full list of states that require E-Verify in 2025, check out this list.
How Can an Employer Enroll in E-Verify?
Enrolling in E-Verify is a simple process, and all that is needed is basic company information and an agreement to comply with the rules of the E-Verify Program. According to E-Verify, here is what the enrollment process entails. Additional information and resources can be found on the official E-Verify website.
What are the best compliance practices for E-Verify?
To maximize the benefits of E-Verify while ensuring compliance, businesses should keep in mind a few best practices.
Establish clear protocols for completing I-9 forms and using E-Verify consistently for all new hires to avoid discrimination claims.
Train Human Resources and other hiring personnel thoroughly on the system’s requirements and processes, ensuring they understand deadlines and proper documentation handling.
Regularly review E-Verify cases to resolve any discrepancies promptly and maintain accurate records for audits.
Stay updated on updates/changes to federal and state regulations regarding E-Verify usage.
By following these best practices, companies can streamline hiring processes, minimize risks, and reinforce their commitment to compliance.
Background Checks: A Broader Scope of Compliance
Pre-employment background checks investigate candidates’ criminal history, previous employment and education, credit checks, and driving records. It also may include drug screenings, depending on the employer. Background checks serve as a way for employers to ensure that the information provided by an applicant is accurate, and to assess any risks or liabilities that a candidate may pose to a company.
Why Ensuring Staffing Partners Are Compliant in Background Checks is Vital
Background checks are a cornerstone of informed hiring decisions, but their value hinges on compliance. When working with staffing companies, you must ensure that they adhere to all applicable federal, state, and local laws governing background screenings. This includes the Fair Credit Reporting Act (FCRA), ban-the-box regulations, and Title VII considerations.
Non-compliant background checks can result in discriminatory hiring practices or violations of privacy laws, which could lead to lawsuits and financial penalties. Partnering with staffing firms that prioritize compliance not only mitigates these risks but also ensures consistent, fair, and lawful evaluation of candidates. Additionally, it protects your business from being associated with unethical or illegal hiring practices that can damage your reputation and jeopardize client relationships.
Key Questions to Ask Staffing Partners
What is your process for conducting background checks, and how do you ensure compliance with federal, state, and local laws?
Are your Human Resources, Recruiting, or other related Staffing personnel trained on the latest regulations, such as the Fair Credit Reporting Act and ban-the-box laws?
How do you handle adverse action notices, and what safeguards are in place to prevent discriminatory practices?
By addressing these questions, you can select staffing partners who align with your compliance goals and reinforce your commitment to compliant employment practices.
What are the compliance factors to consider?
Background checks can vary depending on what state your company is located in, and there are important distinctions to pay attention to regarding federal, state, and local laws. When performing background checks, it is important to partner with legal counsel to ensure that your business remains compliant.
Here are four violations that businesses should be aware of:
Consent Forms: Before conducting a background check, employers must adhere to the Fair Credit Reporting Act (FCRA), which requires informing applicants in writing that the screening will be used for employment purposes. This disclosure must be clear, conspicuous, and provided as a stand-alone document to avoid confusion.
Ban-the-box Regulations: Ban-the-box laws, which vary across states and municipalities, restrict when background checks can occur and when employers can inquire into a prospective employee’s criminal history, including whether that information can be requested on the application. These regulations generally require delaying the check until after the first interview or a conditional job offer. Employers should also verify how these laws interact with the adverse action process in their jurisdiction.
Title VII Considerations: The Equal Employment Opportunity Commission (EEOC) enforces Title VII of the Civil Rights Act, prohibiting employment discrimination based on race, color, religion, sex, or national origin. Employers should ensure that their screening policies do not disproportionately impact protected groups, such as minority populations.
What are the best compliance practices for background checks?
To ensure compliance when conducting background checks, employers should follow a few key best practices.
Start by obtaining clear, written consent from candidates using a stand-alone disclosure form, as required by the Fair Credit Reporting Act (FCRA).
Implement consistent screening policies that comply with federal, state, and local laws, including ban-the-box regulations where applicable.
Train all hiring teams/staff on these requirements to avoid potential legal pitfalls and ensure fair treatment for all applicants.
Use a background screening service as opposed to free/business-conducted background checks based on public records, which is unlawful in some states, including Minnesota and Wisconsin.
Utilize “The Green Factors” as laid out in EEOC guidelines to determine candidate eligibility. The Green Factors are best practice, as they address the recency and severity of criminal offences and job-relatedness.
Maintain accurate records of all checks and actions taken and periodically review policies to align with updates in employment laws.
By adhering to these practices, employers can mitigate risks while promoting ethical hiring processes.
Risks of Non-Compliance for E-Verify & Background Checks
Failing to comply with employment laws governing background checks and E-Verify can have significant legal, reputational, and operational consequences for businesses. These risks extend beyond financial penalties and can undermine a company’s long-term success.
Legal Risks
Non-compliance with regulations such as the Fair Credit Reporting Act (FCRA) or E-Verify requirements can expose employers to fines, audits, and lawsuits. For instance, failing to follow the adverse action process or conducting background checks without proper consent can result in costly legal disputes. In extreme cases, repeated violations could lead to business closures or loss of contracts, particularly for federal contractors where E-Verify compliance is mandatory. Staying informed and adhering to legal standards is essential to protect your organization from these penalties.
Reputational Damage
Beyond financial costs, non-compliance can severely harm your company’s reputation. Trust is a cornerstone of relationships with employees, clients, and the community, and violations of hiring laws may lead to perceptions of unethical practices. News of such issues can quickly spread, damaging your employer brand and making it difficult to attract top talent or retain valuable partnerships. A commitment to compliance demonstrates integrity and helps maintain credibility in competitive markets.
When your staffing providers fail to comply with background check and E-Verify requirements, it directly impacts your brand’s credibility. Clients and employees may perceive your business as complicit in unethical hiring practices, eroding trust and diminishing your competitive edge in the market. By prioritizing partnerships with compliant staffing firms, you safeguard your reputation and build a foundation of integrity.
Operational Setbacks
Legal troubles or reputational harm can lead to operational disruptions, such as delays in hiring processes or the need to allocate resources to address compliance failures. For example, discrepancies in E-Verify or background check procedures may require rework, slowing down onboarding and triggering inefficiencies. In addition, the risk of losing key contracts or clients due to non-compliance can put your business’s stability at risk. Proactively managing compliance ensures smoother operations and helps your team focus on achieving business goals.
By prioritizing compliance, businesses can avoid these risks and build a foundation of trust, efficiency, and resilience.
Confidence in Compliance
Creating a business plan and policy for E-Verify and background checks is the best way to avoid the negative consequences of non-compliance. It is important to know the laws, educate the key players in your organization, and partner with a legal expert to ensure you stay up-to-date with any law changes. Additionally, working with staffing providers who are both compliant and knowledgeable sets your company up for compliant and ethical hiring practices.
If you’re seeking workforce support to navigate hiring complexities, get connected with our team today! Doherty offers unique expertise as an attorney-led, ethical organization that stays up to date with the latest hiring laws. Interested in more employment law insights? Discover more resources here.