North Carolina's E-Verify Law: Compliance And History

North Carolina's E-Verify law came into effect in three phases, with the first phase starting on October 1, 2012, for employers with 500 or more employees. The second phase began on January 1, 2013, for employers with 100 or more employees, and the third and final phase started on July 1, 2013, for employers with 25 or more employees. The law requires private employers with 25 or more employees to use the federal E-Verify system to check the work authorization of all new hires. E-Verify is an internet-based system that compares information from an employee's Form I-9 to data from the Department of Homeland Security and Social Security Administration records.

North Carolina E-Verify requirements for employers

E-Verify is an internet-based system that allows employers to determine employment authorization by checking an employee's documentation against Department of Homeland Security and Social Security Administration databases.

Who is required to use E-Verify in North Carolina?

Any employer that meets the definition of "employer" as set forth in N.C. Gen. Stat. 64-25(4) is required to comply with North Carolina's E-Verify law. An "employer" is defined as "any person, business entity, or other organization that transacts business in this State and employs 25 or more employees in this State." Private employers with 24 or fewer employees are not required to use E-Verify.

Additionally, employers that hire temporary seasonal workers for fewer than nine months within a consecutive 12-month period are not required to use E-Verify.

The North Carolina E-Verify legislation was phased in based on the number of employees:

• Employers with 500 or more employees: Effective October 1, 2012
• Employers with 100 or more employees: Effective January 1, 2013
• Employers with 25 or more employees: Effective July 1, 2013

Failure to comply with North Carolina's E-Verify law can result in monetary penalties of $10,000 or more. Additionally, the state must notify U.S. Immigration and Customs Enforcement and local police. Civil penalties for violations are assessed by the NC Commissioner of Labor, with penalties increasing for subsequent violations.

Enrollment in E-Verify is handled by the U.S. Citizenship and Immigration Service, a division of the U.S. Department of Homeland Security. Employers can begin the enrollment process on the U.S. CIS website and questions should be directed to the E-Verify employer hotline.

Yes, employers who use E-Verify are required to display a notice, supplied by the Department of Homeland Security, in a prominent location that is clearly visible to prospective and current employees who will be verified through the system.

Yes, North Carolina law requires employers to retain the record of the E-Verify verification of work authorization for the entire time the employee is employed and for one year after the employee leaves. It is considered a best practice to attach the result of the E-Verify transaction to each new employee's Form I-9.

Penalties for non-compliance with E-Verify laws

The E-Verify program is a web-based system that allows employers to electronically verify the employment authorisation of newly hired employees. In North Carolina, the E-Verify legislation was passed in three phases:

• From October 1, 2012, employers with 500 or more employees were required to use E-Verify to check work authorisations for all new hires.
• From January 1, 2013, employers with 100 or more employees were required to use E-Verify to check work authorisations for all new hires.
• From July 1, 2013, employers with 25 or more employees were required to use E-Verify to check work authorisations for all new hires.

The North Carolina Department of Labor (NCDOL) is responsible for investigating complaints for violations of the E-Verify law. The NCDOL does not have jurisdiction to investigate complaints regarding employees of state agencies, counties, and municipalities. However, they will ensure that contractors and subcontractors comply with the requirements of E-Verify.

If an employer disagrees with the department's findings, they can file a written petition for a contested case hearing with the North Carolina Office of Administrative Hearings.

If an employer fails to comply with E-Verify laws in North Carolina, they may face the following penalties:

• Civil fines: Non-compliant employers may be subject to civil fines of $10,000 or more.
• Notification to law enforcement: If the Commissioner concludes that an employee is likely an unauthorised alien, they are required to notify United States Immigration and Customs Enforcement and local law enforcement agencies.
• Ineligibility for government contracts: In some states, non-compliance with E-Verify laws can result in the loss of eligibility for state or federal government contracts.
• Business license suspension or revocation: In certain states, non-compliant employers may have their business license suspended or revoked for a period of time or permanently for repeat offences.
• Denial of future projects: Non-compliance can lead to the denial of future projects or contracts with government agencies or other entities.
• Monetary penalties: Employers may be subject to monetary penalties for each violation of the E-Verify laws.

It is important to note that the specific penalties for non-compliance may vary by state and the nature of the violation.

E-Verify enrolment process

In North Carolina, the E-Verify legislation was implemented in three phases:

• From October 1, 2012, employers with 500 or more employees were required to use E-Verify to check work authorization for all new hires.
• From January 1, 2013, employers with 100 or more employees were required to use E-Verify to check work authorization for all new hires.
• From July 1, 2013, employers with 25 or more employees were required to use E-Verify to check work authorization for all new hires.

The E-Verify enrolment process involves the following steps:

• Set up the Enrollment Point of Contact account.
• Determine your account access. The four access methods are employer, E-Verify employer agent, corporate administrator, and web services. E-Verify will ask you four questions to help determine the right access method for your company.
• Select your employer category. Indicate whether your company is a federal contractor, federal, state, or local government organization.
• Enter your company information, including the company name, parent organization, physical verification location, mailing address, employer identification number, and total number of employees.
• Provide hiring site information. Enter the number of hiring sites that will use E-Verify for each state.
• Add E-Verify users and the Memorandum of Understanding (MOU) signatory. Register at least one program administrator, with the option to add more.
• Review the information entered and make any necessary changes.
• Agree to the Terms of Use and the Memorandum of Understanding (MOU).
• Save or print your electronically signed MOU.
• Visit the Enrollment Website and accept the terms.

It is important to note that you cannot save your progress during the E-Verify enrollment process, so ensure you have all the required information before you begin.

E-Verify Memorandum of Understanding

The E-Verify Memorandum of Understanding (MOU) is a legal document that outlines a bilateral agreement between employers and the U.S. Department of Homeland Security (DHS) and the Social Security Administration (SSA). It is a legally binding contract that sets the terms and conditions for participation in the E-Verify program.

In North Carolina, the E-Verify legislation was implemented in three phases, starting from October 1, 2012, and applied to employers with 500 or more employees. From January 1, 2013, employers with 100 or more employees were required to use E-Verify, and finally, from July 1, 2013, employers with 25 or more employees had to comply.

The E-Verify program is a web-based system that allows employers to electronically verify the employment authorization of newly hired employees. The MOU is an important aspect of this process, as it outlines the agreement between the employer and the relevant government agencies.

To access the MOU, employers can follow these steps:

• Turn off the pop-up blocker on your computer.
• From the "Company Account" page, select "Company Profile".
• Click on "View Current MOU" at the bottom of the screen.
• You will then be able to view, print, or save your company's MOU. If you have any issues, you can contact the E-Verify Contact Center for assistance.

It is important to note that North Carolina's E-Verify law does not exempt employers from federal law or the provisions of the MOU required by the DHS when signing up for the federal E-Verify system.

E-Verify and employee rights

In North Carolina, the E-Verify legislation was implemented in three phases:

• From October 1, 2012, employers with 500 or more employees were required to use E-Verify to check work authorizations for all new hires.
• From January 1, 2013, employers with 100 or more employees were required to do the same.
• From July 1, 013, employers with 25 or more employees had to comply with the E-Verify law.

Now, as an employee or individual seeking employment, it is important to understand your rights and responsibilities under E-Verify.

Employee Rights:

• You have the right to know if your employer participates in E-Verify. They must display the E-Verify "Notice of Participation" and "Right to Work" posters in English and Spanish, in a prominent place that is easily visible to all employees and prospective employees. These notices should also be provided with job application materials and at the time of onboarding.
• If your E-Verify case results in a Tentative Nonconfirmation (mismatch), your employer must give you a Further Action Notice in English and, if appropriate, a translated version. This will include information on how to resolve the mismatch.
• You have the opportunity to take action to resolve a mismatch without any adverse action being taken against you because of it.
• If you decide to take action, you will receive a Referral Date Confirmation, giving you a deadline to contact the Department of Homeland Security (DHS) or Social Security Administration (SSA) to resolve the issue.
• You can continue working during the E-Verify process, including while resolving a mismatch.
• Your employer must not create an E-Verify case for you before you accept an offer of employment and complete Form I-9.
• Your employer must not use E-Verify to discriminate against you on the basis of citizenship, immigration status, race, color, religion, sex, gender identity, sexual orientation, national origin, age, disability, or genetic information.
• Your employer must not use E-Verify to verify you if you are not a new hire. There is an exception for some employers with federal contracts, who can use E-Verify to confirm the eligibility of existing employees.
• Your employer must not terminate or take adverse action against you because you decide to take action to resolve a mismatch, or because your mismatch case is pending with DHS or SSA.
• Your employer must not use E-Verify for reverification if you are an existing employee whose temporary employment authorization has expired. They must complete Supplement B, Reverification and Rehire, of Form I-9 instead.
• Your employer cannot specify which Form I-9 documentation you must present.

Employee Responsibilities:

• You must ensure that the information you provide on Form I-9, Employment Eligibility Verification, is accurate.
• You must write your legal name on Form I-9.
• If you have recently changed your name, citizenship, or immigration status, you should notify the SSA to ensure your records are correct and decrease the chance of a mismatch.
• If your employer notifies you of a mismatch, you should review the Further Action Notice to ensure your personal information is correct, and tell your employer immediately if anything is incorrect.
• You must decide whether to take action to resolve the mismatch and communicate this decision to your employer as soon as possible. If you decide not to take action, your employer may terminate your employment.
• You must sign and date the Further Action Notice and return it to your employer.

If you believe your employer is not following these E-Verify rules, or has discriminated against you, you are encouraged to report it.

Frequently asked questions