Complying with federal employment eligibility laws is just one of countless demands warehouse managers juggle on a daily basis. Although staffing compliance is crucial for keeping your facility running at the highest possible standards, it can fall to the wayside amid other responsibilities like optimizing workflows, ensuring safety, and meeting tight deadlines.
But hiring compliance doesn’t have to hinder operations. One of the tools at your disposal is E-Verify, a federal system designed to confirm whether or not employees are legally authorized to work in the United States. This blog post will explain what E-Verify is, why it matters in the light industrial industry, and how you can implement it in your hiring process effectively.
What is E-Verify and How Does It Differ from Form I-9 Verification?
E-Verify is a free, web-based system operated by the U.S. Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). By cross-checking information against federal databases, E-Verify enables employers to electronically verify the employment eligibility of newly hired warehouse workers. For warehouse managers, this provides an extra layer of assurance that their new hires are legally authorized to work in the U.S.
Form I-9 is a mandatory paper-based process for all U.S. employers. Under the Immigration Reform and Control Act of 1986, each new hire must complete Form I-9. This form requires employees to provide identity and work authorization documents (such as a driver’s license or Social Security card) for verification by the employer. As a result, Form I-9 relies on the hiring manager’s visual inspection of documents.
E-Verify eliminates human error or potential fraud that may exist in the Form I-9 process by double-checking the accuracy of this information. After completing Form I-9, hiring managers input key data (i.e. employee’s name, Social Security number, and citizenship status) into the E-Verify system. Then, E-Verify confirms whether that information matches government records, flagging any discrepancies for further review.
As warehouse managers often need the hiring process to move quickly to meet seasonal staffing demands, E-Verify reduces the risk of penalties or disruptions down the line.
Is E-Verify Mandatory for Warehouse Employers?
E-Verify requirements vary by state. More than 20 states currently mandate E-Verify for some or all private employers, depending on certain criteria. For example, Florida requires private companies with 25+ employees to use E-Verify. It’s important to familiarize yourself with your state’s regulations to avoid fines or loss of business licenses due to non-compliance.
While E-Verify is voluntary for most businesses on a federal level, it is required for federal contractors with specific clauses in their contracts under the Federal Acquisition Regulation. If your warehouse supports government contracts, it’s likely you’ll need to use E-Verify.
Even if E-Verify isn’t mandatory, many warehouses choose to opt in to demonstrate their commitment to workforce legal compliance, protect against legal issues, and strengthen their reputation with clients who value lawful operations—especially in an industry recently rife with labor scrutiny.
How Does the E-Verify Process Work for Temporary and Seasonal Workers?
Warehouses rely on temporary and seasonal workers to handle the holiday rush and other busy periods. While E-Verify is able to accommodate this flexible warehouse staffing model, timing and consistency are key.
The process for temp staffing is similar to that used for permanent hires. After a temporary or seasonal worker completes Form I-9, hiring managers submit their information to E-Verify within three business days of their start date. This applies whether they’re hired directly or through a staffing agency. (However, if the staffing agency is the employer of record, they may handle the E-Verify process directly—a potential benefit of utilizing logistics staffing agencies.) The system will return one of three results:
- Employment Authorized: The worker has been cleared to work.
- Tentative Nonconfirmation (TNC): There’s a mismatch that requires resolution.
- Final Nonconfirmation: This worker is not authorized to work. If the issue isn’t resolved, you may need to terminate employment.
If the system returns a TNC result, new hires will have eight federal workdays to contest the finding with SSA or DHS. During this period, they are legally protected from being terminated based solely on the TNC result.
Always maintain records of start dates and E-Verify submissions, especially for temporary hires. These details may come under scrutiny during audits. The supply chain staffing industry turnover rate may be 500% per year, but high turnover doesn’t excuse non-compliance.
What Are the Risks of Not Using E-Verify?
Understanding E-Verify requirements helps protect your warehouse from fines, legal troubles, and operational disruptions. Whether mandatory or optional for your business, skipping the E-Verify process carries significant risks for warehouse operations.
If E-Verify is required by law, penalties for non-compliance may include:
- Fines: Federal fines for hiring unauthorized workers can cost you thousands per violation. State penalties vary.
- Business License Suspension: Some states revoke licenses for non-compliance.
- Criminal Charges: Knowingly employing unauthorized workers can lead to prosecution, especially in large-scale cases.
Even in cases where E-Verify isn’t mandatory, not using it creates vulnerabilities. Immigration and Customs Enforcement (ICE) audits or I-9 inspections may uncover discrepancies that E-Verify might have caught first. In 2023, an ICE crackdown on the logistics industry resulted in millions in fines. In addition to legal troubles, reputations are at stake. Clients and partners may hesitate to work with a warehouse that’s previously been flagged for labor violations.
The supply chain industry relies on efficiency, and the operational consequences for non-compliance, such as lost contracts, disrupted staffing, or legal troubles, can be significant.
What Steps Should I Take to Implement E-Verify in My Hiring Process?
Ready to get started? Here are tips for integrating E-Verify seamlessly into your hiring process:
- Enroll in E-Verify: Visit www.e-verify.gov, register your company, and sign the Memorandum of Understanding (MOU) with DHS. You’ll need to supply your Employer Identification Number (EIN) and other information about your business.
- Train Your Team: Designate HR or the hiring manager to manage E-Verify. DHS offers free tutorials and resources that can help ensure your team is familiar with the rules and procedures.
- Update Your Onboarding Process: As you incorporate E-Verify into your new-hire process, input data immediately after completing Form I-9 to stay compliant and consistent.
- Post Notices: Displaying E-Verify participation and anti-discrimination posters in your workplace is required by law.
- Monitor and Document: Carefully track case results and retain records for at least one year after an employee leaves (or three years from hire, whichever is longer.)
- Stay Informed: Check for federal and state updates annually to stay abreast of any changes to the law.
Why Compliance Matters in Warehousing
Legal and regulatory compliance is a must. Cutting corners on employment eligibility threatens the efficiency necessary for warehouses to thrive. When used consistently, E-Verify is a strategic tool for protecting your business, workforce, and reputation. At Eclipse Advantage, we’ve seen firsthand how proactive compliance builds trust with clients and resilience against audits.
Don’t let hiring compliance slow down your warehouse operations. First, assess your E-Verify requirements, implement a clear process, and leverage technology. If you have questions about E-Verify or workforce staffing compliance, contact Eclipse Advantage. We’re here to help warehouse managers navigate this landscape with confidence.
How Can Workforce Management Solutions Help Streamline E-Verify Compliance?
Eclipse Advantage, a leading provider of workforce management solutions, has decades of experience in recruiting and retaining talent. Our expertise includes implementing compliant hiring, onboarding, and verification processes. Effective E-Verify use requires precise documentation and adherence. With a focus on data-driven insights and regulatory adherence, we’re committed to helping our partners navigate complex employment laws and reduce the risk of penalties while maintaining a legally compliant workforce.
About Eclipse Advantage
At Eclipse Advantage, we specialize in supply chain workforce solutions that help warehouses stay compliant, efficient, and fully staffed. Our onsite, flexible solutions are designed to align with our clients’ unique staffing and hiring needs. We have a proven track record of helping the companies we partner with achieve greater productivity and attain real visibility into labor expenses, leading to increased throughput and improved performance. Call today to learn more about how Eclipse Advantage can support your business needs.