E-Verify Requirements in Michigan: Employer Obligations

Federal law under the Immigration Reform and Control Act of 1986 (8 U.S.C. § 1324a) requires all U.S. employers to verify the work eligibility of new hires within three days of employment by completing Form I-9. The USCIS operates E-Verify, a voluntary federal electronic system that cross-checks employee information against Social Security Administration and Department of Homeland Security databases.

Executive Order 12989 mandates that all federal contractors and subcontractors use E-Verify before the first day of employment or within 90 days of a contract award, whichever is earlier. Covered federal contractors include those with federal contracts exceeding $3,000 or providing federally funded services. The Department of Homeland Security (DHS) and USCIS enforce E-Verify compliance through monitoring and audits.

Private employers not holding federal contracts are not required to use E-Verify federally, though they must still complete I-9 verifications. Federal penalties for contractors who knowingly fail to use E-Verify include contract termination, debarment from future federal contracts for up to three years, and civil fines. The USCIS processes E-Verify cases within 24 hours in most instances, with a final determination within three business days for cases without discrepancies.

Michigan does not impose a state-mandated E-Verify requirement for private employers. MCL 423.421 and Michigan's Workforce Modernization Act do not establish E-Verify as a statewide obligation. This means that Michigan's law is weaker than federal requirements only insofar as it does not add a state-level mandate on top of existing federal obligations.

Federal contractors operating in Michigan must comply with Executive Order 12989 and use E-Verify—this is a federal requirement that supersedes state law. Employers with federal contracts exceeding $3,000 or receiving federal funding are covered. Non-federal contractors in Michigan may voluntarily use E-Verify, and many do to reduce liability from hiring undocumented workers.

Michigan employers must still complete Form I-9 for all employees regardless of federal contract status, documenting work authorization through government-issued identification. Unlike some states, Michigan has not enacted a state E-Verify mandate or a state-specific employment eligibility verification system. Employers in Michigan are not prohibited from using E-Verify; the state simply does not mandate it for private employers.

Michigan follows the federal standard: employers must complete I-9 forms within three days of hire and retain them for at least three years after hire or one year after termination, whichever is longer. Private employers who use E-Verify voluntarily receive a federal safe harbor from liability if they act in good faith, but Michigan does not extend additional protections or require state-level compliance verification. The state does not operate a separate employment eligibility database or agency separate from federal USCIS systems.

Private employers not holding federal contracts are not required to use E-Verify under either federal or Michigan law, though they must still complete I-9 verifications. Employers may rely on the federal I-9 process alone without using E-Verify, provided they follow proper completion procedures and maintain records.

Federal contractors with a Safe Harbor defense can avoid liability if they complete E-Verify in good faith and follow proper procedures, even if the system returns an initial discrepancy. Employees who contest an E-Verify discrepancy have the right to review their Social Security Administration or Department of Homeland Security record and request correction, which pauses the case.

Michigan law does not recognize a separate state-level E-Verify exemption or override. Certain religious organizations and nonprofits are not exempt from E-Verify requirements if they hold federal contracts. Employees with valid work authorizations (including employment authorization documents, green cards, and visa holders) can be verified through E-Verify without difficulty.

Employers cannot selectively E-Verify certain groups of employees based on appearance, accent, or national origin—federal law prohibits this discriminatory use. Employees placed through temporary staffing agencies may be verified by the staffing agency rather than the end-user employer in some cases, but the federal contractor remains responsible for ensuring E-Verify use. Independent contractors performing federal contract work may or may not require E-Verify depending on contract terms and whether they are treated as employees.

Step 1: Document Your Situation. Determine whether your employer holds a federal contract valued at $3,000 or more. Review your employment offer letter, onboarding materials, and company website for federal contract information. Keep records of when you were hired and whether you completed a Form I-9. If employed, maintain a personal copy of your I-9 verification (both pages) for your records. Document any E-Verify discrepancies you received, including the date, Notice of Discrepancy content, and any employer responses.

Step 2: Internal Complaint and Employer Communication. If your employer is a federal contractor and failed to use E-Verify before your start date or within 90 days of the contract award, request written clarification from your Human Resources department about why E-Verify was not completed. Request a copy of your I-9 form and any E-Verify results or notices. If you received an E-Verify discrepancy notice, you have the right to inspect your Social Security Administration and Department of Homeland Security records and contest the finding within 10 days. Inform your employer in writing that you are contesting the discrepancy and request that they NOT terminate you pending resolution.

Step 3: File a Complaint with the Appropriate Agency. If your employer is a federal contractor, file a complaint with the Department of Homeland Security's E-Verify audits division or report the violation to the federal agency that awarded the contract (GSA, Department of Defense, Department of Labor, etc.). The federal agency can investigate whether the contractor properly used E-Verify. File online at www.e-verify.gov or call the USCIS E-Verify help desk at 1-888-464-4218 to verify your case status and request an audit. If you received improper termination due to an E-Verify discrepancy you contested, file an employment discrimination charge with the EEOC (Michigan is a deferral state with 300 days to file) or with the Michigan Department of Labor.

Step 4: Understanding the Investigation Process. Once you file with the federal agency or USCIS, expect a 10- to 30-day investigation where the agency reviews the contractor's E-Verify records and I-9 compliance. The USCIS will contact the contractor directly for documentation. If E-Verify found a discrepancy in your case, the Social Security Administration and Department of Homeland Security will review the discrepancy and issue a final determination within 10 business days. You will receive a Notice of Discrepancy Resolved or a "Case Closed" notice by email if registered with E-Verify. If the contractor failed to use E-Verify, the federal agency may pursue contract suspension or debarment proceedings, which can take 60 to 120 days.

Step 5: Consulting an Attorney. If you were terminated due to an E-Verify discrepancy or the employer's failure to properly verify your work eligibility, consult an employment attorney immediately. An attorney can help you determine whether you have a wrongful termination claim, discrimination claim (if termination was based on national origin or protected status), or contractual claim. Contact a lawyer experienced in immigration employment law or civil rights. If you contested an E-Verify discrepancy and were not allowed to work pending resolution, you may have a claim for unpaid wages or wrongful suspension.