E-Verify Rumors vs What We Know
E-VERIFY
Rumors vs What we know
There have been many discussions around the new E-Verify requirements in Florida. Although the legislative branch of the government updated the requirement in this past session, there are many answers that will only likely become clear after the judicial branch (a judge) makes a ruling when, not if, legal action is taken up in the courts.
Despite what rumors you hear, for the reason above, no one really knows if any of the creative possible ways for employers to help minimize the impacts on their business will be truly legal. For example, no one knows the answers to these questions yet:
- Will multiple corporations with less than 25 employees and with common ownership require E-Verify?
- What employee start date defines the requirement – the PEO hire date or the client hire date?
- Will switching to or from a PEO trigger the requirement?
We are probing and asking these and many other questions to see if we can get any legal guidance on how the law is most likely to be interpreted. As we get clarity, we will pass that information along so we can all understand how this will impact our clients.
“As of July 1, 2023, all private employers in Florida with 25 or more employees will be required to use E-Verify, the federal government’s database for verifying work authorization. Enforcement of this new E-Verify requirement will begin one year after enactment on July 1, 2024.
These employers also must:
- Certify E-Verify participation on the company’s first state tax service provider report each year; and
- Retain proof of the E-Verify verification for at least three years from the date of hire.
Employee leasing companies will be responsible for E-Verify verification, unless the responsibility is transferred to the client company by agreement.
Employers should expect random audits as well as enforcement based upon complaints. Initially employers will have 30 days to cure any noncompliance. Multiple violations within a 24-month period will lead to fines and suspensions.”
“Businesses who knowingly employ unauthorized workers or fail to register and use Form I-9 or the E-Verify system will be subject to penalties beginning July 1, 2024. If a noncompliance notice is received from the Department of Economic Opportunity (DEO), the employer has 30 days to submit sufficient proof to cure the noncompliance. The penalties, depending on the duration of the violation, include imposing a daily fine of $1,000, requiring an employer to report quarterly during a probationary period of one year, and suspending or revoking employer licenses.”
What you should know as a Broker or Agent
It’s safe to say, as PEO Brokers and Agents in Florida, you will need to become familiar with the process. Here are a few helpful things to know.
Employers will need the following information to get enrolled:
- Company legal name
- Employer identification number (also called a Federal Tax ID Number)
- Primary physical address from which your company will access E-Verify
- Mailing address (if different from the physical address)
- Hiring sites that will participate in E-Verify in each state
- Total number of current employees
- Your company’s North American Industry Classification System (NAICS) code
- Contact information (name, phone number, email addresses) for your company’s Memorandum of Understanding (MOU) Signatory and Program Administrator
The enrollment process is roughly 10 steps.
“E-Verify works by comparing the information employees provide for Form I-9, Employment Eligibility Verification, against records available to SSA and DHS. Generally, if the information matches, the employee’s case receives an Employment Authorized result in E-Verify. If the information does not match, the case will receive a Tentative Nonconfirmation (Mismatch) result and the employer must give the employee an opportunity to take action to resolve the mismatch.”
e-verify.gov mismatch information
Although E-Verify uses information from Form I-9, there are some important differences between Form I-9 and E-Verify requirements.
List B documents as well as List A and List C can be found here with examples.
We expect to see a mix of E-Verify services provided and assignment of responsibility for the E-Verify process among the various PEOs. As we hear more about requirements, processes, and various PEO positions, we will let you know.