Understanding Texas’ E-Verify Requirements: What Employers and Immigrants Need to Know

Texas and E-Verify – What It Means for Employers and Immigrant Workers

Texas is home to one of the largest immigrant workforces in the United States. With ongoing discussions about employment verification and immigration reform, many employers and workers alike have questions about E-Verify—the federal system used to confirm a worker’s eligibility to work in the U.S. While Texas does not mandate E-Verify for all employers, certain businesses and government contractors must comply. This blog explores what E-Verify is, how it affects businesses and immigrant workers, and the legal implications of failing to comply with verification laws.

What Is E-Verify?

E-Verify is an internet-based system operated by the U.S. Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). It allows employers to electronically verify that newly hired employees are authorized to work in the United States.

Employers input the information from a new hire’s Form I-9 into the E-Verify system.
The system cross-checks the data against federal records to confirm employment authorization.
If discrepancies arise, the employee has an opportunity to resolve them before an employer takes action.

E-Verify is intended to prevent unauthorized employment, but it can also lead to complications for legally authorized immigrants and naturalized citizens if records are outdated or incorrect.

Is E-Verify Mandatory in Texas?

Unlike some states that require all businesses to use E-Verify, Texas has a more limited approach.

1. State Agencies and Contractors Must Use E-Verify

In 2015, Texas Governor Greg Abbott signed Executive Order RP-80, which requires all state agencies and institutions of higher education to use E-Verify for new hires.
Any private company that contracts with a state agency must also enroll in E-Verify.

2. Private Employers Are Not Required to Use E-Verify

Texas does not mandate E-Verify for private businesses that do not contract with the government.
However, many companies voluntarily use the system to avoid legal risks and comply with federal regulations.

3. Federal Contractors Must Use E-Verify

Businesses in Texas that have federal contracts must comply with E-Verify requirements under Executive Order 12989.
This applies to companies working with federal agencies like the Department of Defense, Department of Transportation, and NASA.

The Impact of E-Verify on Immigrant Workers

While E-Verify is designed to ensure legal employment, it has significant effects on immigrant workers.

1. Risk of Employment Barriers Due to Errors

Legal immigrants, refugees, and naturalized citizens sometimes receive erroneous "Tentative Nonconfirmations" (TNCs) due to outdated federal records.
If an employer does not follow proper procedures, a legally authorized worker could be denied employment or wrongfully terminated.

2. Increased Scrutiny for Undocumented Workers

Employers using E-Verify are more likely to detect unauthorized workers, limiting job opportunities for undocumented immigrants.
Some employers may mistakenly assume that non-citizens are ineligible to work and refuse to hire them.

3. The Right to Contest E-Verify Errors

Workers who receive a TNC notice have the right to appeal and correct errors in their records through DHS or SSA.
Employers cannot fire an employee based solely on a TNC without giving them a chance to resolve the issue.

What Are the Legal Consequences of Non-Compliance?

Employers that fail to verify workers’ employment eligibility face serious legal and financial penalties:

1. Federal Fines and Penalties

Businesses that knowingly hire unauthorized workers can face fines ranging from $250 to $23,331 per violation under U.S. Immigration and Customs Enforcement (ICE) enforcement policies.
Repeat offenders may face criminal charges, especially if they engage in patterns of hiring undocumented workers.

2. Loss of Government Contracts

State contractors in Texas who fail to comply with E-Verify requirements risk contract termination and blacklisting from future government projects.

3. Potential Workplace Raids and Investigations

Employers that do not properly verify their workforce could be subject to ICE workplace audits and inspections.
If violations are found, the business could be forced to fire workers, pay fines, or shut down operations.

How Texas Employers Can Stay Compliant

Employers in Texas should take proactive steps to ensure compliance with employment verification laws:

1. Maintain Proper I-9 Documentation

Employers must complete and retain Form I-9 for all employees, regardless of whether they use E-Verify.
The U.S. Citizenship and Immigration Services (USCIS) I-9 Handbook provides guidance on completing and storing I-9 forms correctly (https://www.uscis.gov/i-9-central).

2. Use E-Verify Correctly

Employers enrolled in E-Verify must follow federal guidelines to avoid discrimination claims.
E-Verify should not be used to pre-screen applicants or target specific groups.

3. Educate Employees on Their Rights

Workers should understand their rights in the E-Verify process, including how to contest errors.
Employers should provide written instructions in English and Spanish on how to resolve verification issues.

4. Seek Legal Guidance

Immigration law is complex, and noncompliance can have serious consequences.
Employers should consult with an immigration attorney to ensure they meet all verification requirements.

Conclusion – Understanding E-Verify in Texas

While Texas does not require E-Verify for all businesses, state contractors and federal employers must comply. For immigrants, E-Verify can create employment opportunities but may also lead to challenges if errors arise. Employers must use the system responsibly, following both federal and Texas laws to avoid legal trouble. Whether you are a business owner or a worker, understanding your rights and obligations under E-Verify is essential to navigating the Texas job market.