E-Verify: Overview, definition, and example
What is E-Verify?
E-Verify is an online system operated by the U.S. government that allows employers to confirm whether new employees are legally authorized to work in the United States. It compares information from an employee’s Form I-9 to records from the Department of Homeland Security and the Social Security Administration.
Why is E-Verify important?
Some employers are legally required to use E-Verify, especially if they have federal contracts or operate in states where it’s mandatory. Including an E-Verify clause in a contract—often in government-related or staffing agreements—helps demonstrate compliance with federal hiring laws. It can also reduce the risk of penalties for employing unauthorized workers.
Understanding E-Verify through an example
Here’s how E-Verify might come up in a contract. A staffing agency signs a service agreement with a federal contractor. The contract includes a clause stating that all employees placed on assignment through the agency must be verified using E-Verify. This assures the federal contractor that everyone working on the project is legally eligible to work in the U.S., meeting the requirements of their own government contract.
Example of an E-Verify clause
Here’s how an example E-Verify clause may look like in a contract:
The contractor represents that it participates in the E-Verify program and will use the system to verify the employment eligibility of all newly hired employees assigned to perform work under this agreement, as required by applicable federal law.
Conclusion
E-Verify clauses are often included to meet legal or contractual requirements, especially when working with government agencies or contractors. If your business hires employees or works with staffing firms, understanding whether E-Verify applies—and documenting it in your contracts—can help you stay compliant and avoid legal risk.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.