E-Verify Requirements in Arizona: Employer Obligations

The Immigration Reform and Control Act (IRCA), 8 U.S.C. § 1324a, requires all U.S. employers to verify the work authorization and identity of all newly hired employees using Form I-9. The law covers employers with one or more employee engaged in interstate commerce, which captures virtually all employers. IRCA prohibits employers from knowingly hiring, continuing to employ, or recruiting for employment any person not authorized to work in the United States. Employers must complete the I-9 form within three business days of hire and retain it for three years after hire or one year after employment termination, whichever is longer.

E-Verify is the Department of Homeland Security's voluntary federal program that allows employers to verify work authorization electronically through the Social Security Administration (SSA) and Department of Homeland Security (DHS) databases. While E-Verify is not federally mandatory for most private employers, IRCA violations carry significant penalties: civil penalties range from $375 to $3,200 per undocumented worker, and employers can face injunctions and criminal prosecution for pattern or practice violations. The Department of Labor (DOL) and Department of Homeland Security enforce IRCA. Many states, including Arizona, have enacted their own mandatory E-Verify laws that exceed federal requirements.

Arizona imposes mandatory E-Verify requirements that are stricter than federal law. Under Arizona Revised Statutes § 23-214, all Arizona employers, regardless of size, must use E-Verify to verify the work authorization of all new hires before they begin employment or within three business days of hire. This is mandatory, not optional—Arizona does not permit employers to rely solely on I-9 completion without E-Verify verification.

Under A.R.S. § 23-212, Arizona law distinguishes between first-time violators and repeat violators. A first-time civil violation can result in penalties of up to $2,500 per violation. A second or subsequent violation within a three-year period is classified as a knowing or intentional violation and carries penalties of up to $5,000 per violation. Willful or repeated violations can result in suspension or revocation of the employer's business license, articles of incorporation, or articles of organization. Arizona law also permits the suspension of corporate charters and limited liability company operating privileges.

Arizona's law applies to both private employers and public employers; state agencies and political subdivisions must also use E-Verify. A.R.S. § 23-214 covers all employers in Arizona with one or more employee—no employer size exemption exists. This is significantly broader than federal IRCA, which technically applies to employers with one or more employee but is enforced more selectively. Arizona law further requires that employers maintain E-Verify case documentation and records for at least three years. Unlike federal I-9 requirements, which allow retroactive completion in some contexts, Arizona law does not permit retroactive E-Verify verification; the verification must occur before work begins or within three business days.

Arizona's mandatory E-Verify requirement contains limited exceptions. Employers are not required to re-verify employees hired before the effective date of A.R.S. § 23-214 (July 1, 2008), though best practice is to voluntarily verify existing employees' continued work authorization.

E-Verify has built-in procedural safeguards that serve as affirmative defences in some contexts. If an employer receives a tentative non-confirmation (TNC) from E-Verify, the employer must notify the employee and allow a 10-day period for the employee to contest the finding. If the employee contests and E-Verify ultimately cannot verify authorization, the employer must terminate the employee to avoid liability. An employer who follows the E-Verify process in good faith and receives a confirmation is protected from sanctions under Arizona law, even if the confirmation is later discovered to be erroneous.

Certain employees may be exempt from E-Verify verification if they fall into federal work-authorization categories that do not require verification, such as certain visa holders whose status is electronically verifiable. However, this does not exempt the employer from using E-Verify; rather, E-Verify handles the verification on the employer's behalf.

Arizona law does not exempt independent contractors from E-Verify if they meet the definition of employee under Arizona law. However, if a worker is properly classified as an independent contractor and not subject to the employer's control, E-Verify requirements may not apply. Misclassification of employees as contractors does not shield the employer from E-Verify liability; if the worker is actually an employee, E-Verify verification is required.

Unions and collective bargaining agreements do not exempt employers from E-Verify compliance. Arizona law applies uniformly regardless of union status. Employers cannot negotiate around E-Verify requirements through collective bargaining.

Step 1: Document and Establish E-Verify Readiness. Before hiring any employee, register your business with E-Verify at e-verify.irs.gov or e-verify.gov. Obtain an E-Verify user ID and password. Keep a list of authorized company representatives who will conduct E-Verify verifications. Retain all E-Verify transaction records, case results, and TNC (tentative non-confirmation) notices for at least three years. Create a written I-9 and E-Verify compliance policy that outlines your verification procedures, timelines, and record retention practices.

Step 2: Conduct the Verification Process Within Three Days of Hire. On the employee's first day or within three business days, have the new hire complete the Form I-9 in person or remotely (if compliant with federal guidelines). Examine original identity and work authorization documents (passport, green card, driver's license, etc.). Do not accept photocopies or faxes of identity documents. Enter the employee's information into E-Verify using the authorized company representative's E-Verify account. Submit the E-Verify query within the three-business-day window. Do not permit the employee to begin work until E-Verify verification is obtained.

Step 3: Handle E-Verify Results and Respond to TNCs. If E-Verify provides an immediate confirmation, document the confirmation number and date. If E-Verify issues a tentative non-confirmation (TNC), inform the employee of the TNC in writing and provide the notice of rights. Give the employee 10 calendar days to contest the TNC through E-Verify's resolution process (contacting SSA or DHS, as applicable). Do not terminate the employee during the TNC resolution period if the employee contests. If the employee does not contest or if the TNC is confirmed after 10 days, terminate employment immediately. Maintain records of all TNC notices and resolution correspondence.

Step 4: Understand Your Legal Obligations if a Violation is Discovered. If your company is found to have hired an employee without E-Verify verification or after receiving a TNC non-confirmation, you are liable under A.R.S. § 23-212. Arizona's Attorney General or a private party (in some contexts) may initiate civil enforcement. If your business license is suspended or revoked, you will be unable to operate legally in Arizona. If the violation involves a knowing or intentional pattern (multiple violations), you face criminal prosecution and penalties of up to $5,000 per violation.

Step 5: Consult an Employment Attorney if Facing Enforcement Action. If you receive notice of E-Verify non-compliance, violation, or an audit, contact an Arizona employment attorney immediately. An attorney can review your E-Verify records, assess penalties exposure, negotiate with the Attorney General, defend against claims, and help mitigate license suspension or revocation. An attorney can also advise on remedial measures to prevent future violations and ensure company-wide E-Verify compliance. Do not ignore or delay responding to enforcement notices; Arizona takes E-Verify violations seriously.