E-Verify Requirements in Alabama: Employer Obligations

Federal law under the Immigration Reform and Control Act (IRCA), 8 U.S.C. § 1324a, requires all employers to verify employment authorization by completing Form I-9 for all new hires within three business days of employment. E-Verify is a voluntary federal system administered by the Department of Homeland Security (DHS) and Social Security Administration (SSA) that electronically verifies the validity of Social Security numbers and immigration status.

However, E-Verify is mandatory for federal contractors and subcontractors under 41 U.S.C. § 4712. Federal law prohibits discrimination based on citizenship or national origin during the hiring and verification process under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e.

Employers who fail to comply with I-9 requirements or hire unauthorized workers face civil penalties ranging from $100 to $1,000 per unauthorized employee, and potential criminal penalties for pattern or practice violations. The EEOC enforces anti-discrimination protections, while Immigration and Customs Enforcement (ICE) enforces work authorization verification requirements.

Alabama Code § 25-10-22 imposes a mandatory E-Verify requirement that is stricter than federal baseline requirements. Alabama law mandates that all employers, regardless of federal contractor status, use E-Verify within 3 business days of employment. This goes beyond federal law, which makes E-Verify mandatory only for federal contractors and recommended for other employers.

Under Alabama's statute, employers must use E-Verify to verify all new employees' work authorization. The law covers all employers doing business in Alabama, regardless of size or industry. Employers must not accept, receive, or hire an employee without first verifying employment eligibility through E-Verify, except in limited circumstances where alternative federal documentation is acceptable.

Alabama imposes civil penalties for violations of § 25-10-22. A first violation results in a civil penalty of not less than $25 and not more than $100 per unauthorized employee. Second and subsequent violations carry penalties of not less than $250 and not more than $1,000 per unauthorized employee. Additionally, Alabama law allows the Department of Revenue to revoke, suspend, or deny renewal of business licenses for employers who violate E-Verify requirements, which is a stronger enforcement mechanism than federal law provides.

Alabama also prohibits national origin and citizenship status discrimination during hiring and E-Verify procedures, mirroring federal protections but with state-level enforcement through the Alabama Department of Labor. The state requires employers to train supervisors and hiring personnel on proper E-Verify procedures to avoid compliance gaps.

Alabama's E-Verify requirement contains limited exceptions under state law. Employers may be excused from E-Verify if the employee presents certain federal documents establishing work authorization without needing electronic verification, such as a valid passport, permanent resident card, employment authorization document (EAD), or other documents specified by federal regulation (8 C.F.R. § 274a.2).

However, employers are strictly liable for the accuracy of I-9 documents and for good-faith use of E-Verify. Good-faith effort to comply is a defense against penalties, but negligence or knowing violations result in liability. An employer cannot defend non-compliance by claiming the E-Verify system was unavailable; employers must attempt verification and document the attempt.

Sole proprietorships and family-owned businesses do not receive special exemptions under Alabama law—they must comply equally. Nonprofit organizations are not exempt, though certain federal programs may have different requirements. Temporary staffing agencies must verify their temporary workers through E-Verify before sending them to client sites; the agency bears primary responsibility, not the client employer.

Employers facing E-Verify system errors or discrepancies have a process to contest incorrect results through the federal Tentative Non-Confirmation (TNC) process, which provides a 10-day window for the employee to challenge results before final non-confirmation. Alabama recognizes this federal dispute procedure but requires final compliance regardless of system delays. Union-represented employees are not exempt; the bargaining unit status does not excuse E-Verify verification requirements.

Step 1: Document Your Hiring Process — When hiring, create and maintain records of all I-9 documentation, including identification and work authorization documents presented by employees. Keep copies of the front and back of documents presented (driver's license, passport, EAD, etc.). Document the date the employee presented documents, the employee's name, position, hire date, and compensation. Maintain these records for at least 3 years from hire or 1 year from termination, whichever is later, in a secure location. Take a photograph or scan of documents if legally permissible under your state policies.

Step 2: Complete I-9 Form Immediately — Within 3 business days of hiring, complete the Form I-9 (Employee Eligibility Verification) with the new employee. Have the employee complete Section 1 (employee information) in person or remotely if compliant with federal guidance. You complete Section 2 (employer review of documents) by examining the documents in person. Do not accept documents via email or mail unless compliant with remote I-9 procedures authorized by USCIS during national emergencies.

Step 3: Initiate E-Verify Within 3 Business Days — Access the E-Verify system at www.e-verify.gov using your employer account (create one free at the website if you do not have an existing account). Input employee information from the I-9 form (name, Social Security number, date of birth, immigration status category). Alabama law mandates use within 3 business days of hire. E-Verify will respond with either a "Case Status: Employment Authorized" (match found), "Case Status: Tentative Non-Confirmation" (mismatch requiring employee action), or immediate non-confirmation (e-verify.gov provides instructions for each outcome). Document the E-Verify case number and completion date.

Step 4: Handle E-Verify Results and Disputes — If E-Verify confirms employment authorization, proceed with normal employment. If E-Verify issues a Tentative Non-Confirmation (TNC), immediately notify the employee in writing of the mismatch and inform them they have 10 federal working days (8 business days in Alabama count as federal working days) to contest the result. The employee must contact Social Security Administration (SSA) or USCIS, depending on the discrepancy type, to correct their records. Do not take adverse employment action (termination, suspension, discipline) during the 10-day contest period unless other legal grounds exist. If the employee does not contest or the contest is unsuccessful, and E-Verify does not confirm employment authorization, you must terminate the employee's employment in compliance with Alabama law. Do not allow the employee to continue working after final non-confirmation without risking civil penalties.

Step 5: Consult an Employment Attorney for Complex Situations — Consult an employment law attorney licensed in Alabama if E-Verify raises discrimination concerns (e.g., if E-Verify verification is applied only to certain employees based on national origin or citizenship status, creating a potential Title VII violation). Consult if an employee claims the E-Verify result is inaccurate or if you face allegations of hiring unauthorized workers. Consult before terminating an employee based on E-Verify non-confirmation to ensure the termination complies with Alabama law and does not violate discrimination statutes. An employment attorney can also review your I-9 and E-Verify procedures to ensure compliance and reduce penalty exposure. If the Alabama Department of Revenue threatens license suspension or revocation for violations, immediate legal counsel is essential.