Employment Identity Verification: Process, Required Documents, Penalties and More.

Ever noticed how airport security never apologizes for double-checking your ID? There’s a reason for that.

When something looks perfectly legitimate, that’s exactly when you need to pay the closest attention. 

And when it comes to hiring, this couldn’t be more true.

Employment identity verification might sound like just another HR term, but it’s actually your business’s first (and sometimes last) line of defense against some pretty clever deceptions. 

Between remote hiring becoming the norm and identity theft getting more sophisticated by the day, knowing exactly who you’re bringing into your organization has never been more important.

And it’s not that technical, honestly. If you have the next 6 minutes, let’s walk through what this really means for your business and, more importantly, how to get it right every single time.

What is Employment Identity Verification?

When you’re hiring someone, you’re not just taking their word for it – you need to validate their identity and work authorization through specific documents and verification steps. That’s exactly what employment identity verification is. By doing so, you protect yourself from frauds happening due to employment identity theft, unauthorized employment, and potential security breaches.

It’s actually a two-way street: you verify their identity, and they authenticate themselves through required documentation.

For this process, you’ll be:

• Checking if identity documents are genuine
• Confirming work authorization is valid
• Make sure the person and their documents match up
• Keeping proper records of your verification process

Sure, it might sound like a lot, but modern verification tools have made the process much more manageable than the old days of purely manual checks.

Employment Identity Verification Regulations in the United States

When it comes to employment identity verification, the U.S. has clear-cut federal requirements that every employer needs to follow. Not “should follow” – must follow. Here’s what you’re legally required to deal with:

Form I-9 Requirements and Compliance

Every employer in the U.S., regardless of size, must complete Form I-9 for each new hire – citizen or non-citizen – since November 6, 1986. Here’s the critical timeline:

• Employee must complete Section 1 by their first day
• You must verify documents and complete Section 2 within 3 business days
• Keep forms for 3 years after the hire date OR 1 year after employment ends (whichever is later)

Also, you’ll need to keep all Form I-9s for 3 years after the hire date or 1 year after employment ends, whichever is later. 

All documents must be securely stored, readily available for government inspection within 3 days, and properly disposed of once the retention period ends. For electronic storage, specific security and backup measures must be implemented to protect sensitive information.

E-Verify Program Overview

While Form I-9 is mandatory, E-Verify adds an extra layer of verification by cross-checking employee information against SSA and DHS databases. However, requirements differ at the state level. Here’s a topline overview.

Requirement Category	States
All or Most Employers Required	Arizona, Alabama, Florida, Georgia, Utah, Tennessee, South Carolina, North Carolina, Mississippi, Louisiana
Public Employers and/or Contractors Only	Texas, Idaho, Minnesota, Michigan, Missouri, Nebraska, Oklahoma, Pennsylvania, Virginia, West Virginia, Indiana
Local Regulations	California, Washington, Illinois
No E-Verify Requirement/Voluntary	Alaska, Hawaii, Maine, Massachusetts, New York, Vermont, Rhode Island, Connecticut, New Jersey, Delaware, Maryland, Montana, Wyoming, South Dakota, North Dakota, Kansas, Arkansas, Iowa, Wisconsin, Ohio, Oregon

Source: Equifax

Note: Some jurisdictions have their own specific requirements at the county or city level. Always verify both state and local regulations for your specific location.

Non-Compliance Penalties

Non-compliance can result from both willful violations and simple paperwork errors, with penalties varying accordingly. 

• Civil fines can range from $281 to $2,789 per Form I-9 violation
• Escalated penalties of $689 to $27,894 per employee for knowingly hiring unauthorized workers
• Increased fines for repeat violations
• Potential criminal penalties for pattern violations
• Business license suspension in certain states

Document Requirements

When verifying employment eligibility, employers must examine either one document from List A, or a combination of one document from List B and one from List C.

• List A (Documents that establish both identity and employment authorization): U.S. Passport or Passport Card, Permanent Resident Card, Alien Registration Receipt Card, Foreign passport with I-551 stamp, Employment Authorization Document with photograph, Foreign passport with Form I-94 indicating temporary evidence of permanent residence.
• List B (Documents that establish identity only): Driver’s license or ID card issued by state/territory, ID card issued by federal/state/local agencies, School ID with photograph, Voter registration card, U.S. Military card or draft record, Military dependent’s ID card, U.S. Coast Guard Merchant Mariner Card, Native American tribal document, Driver’s license issued by a Canadian government authority.
• List C (Documents that establish employment authorization only): U.S. Social Security card, Certification of Birth Abroad, Original or certified copy of U.S. birth certificate, Native American tribal document, U.S. Citizen ID Card, Employment authorization document issued by Department of Homeland Security.

Note that all documents must be unexpired and original – photocopies are not acceptable for verification purposes.

Methods to Conduct Employment Identity Verification

Organizations have multiple options at their disposal. Each method serves different needs and can be used individually or in combination depending on your business requirements. However, as we stated earlier, 

Form I-9 verification is the mandatory baseline for all U.S. employers.

You can always implement additional verification methods to enhance security and streamline processes, particularly given the rise of remote work and digital fraud. 

Method	Description	Process Steps
I-9 Forms	A federally mandated form requiring physical document verification and employee attestation is required within 3 business days of employment starting.	1. Employee completes Section 1. 2. Employee presents original identity documents. 3. Employer physically examines documents and completes Section 2. 4. Form stored according to retention requirements.
E-Verify	Internet-based system that electronically matches Form I-9 data against SSA and DHS records.	1. Enter I-9 information into the system. 2. Review the initial system response. 3. Resolve any Tentative Non-Confirmation if flagged.
Government ID Verification	Physical and digital validation of government-issued identification documents.	1. Collect and scan government ID. 2. Verify security features (holograms, micro print, UV patterns). 3. Compare the photo to the individual. 4. Document verification outcome.
Document Verification	Authentication of supporting identity documents beyond primary ID.	1. Request required supporting documents. 2. Validate issuing sources and authenticity. 3. Cross-reference information across multiple documents.
Database Verification	Cross-referencing ID information with authorized government and commercial databases backed by agencies like TransUnion.	1. Input identity information into the system. 2. System automatically checks multiple databases. 3. Review match results and address discrepancies.
DIY Verifications	In-house document review following USCIS guidelines.	1. Examine the document’s physical characteristics. 2. Check required security elements per USCIS guidelines. 3. Document examination findings.
Biometric Verification	Identity confirmation using unique biological characteristics like fingerprints or facial recognition.	1. Capture biometric data. 2. System processes against the database. 3. Store verification record.
myE-Verify	Employee self-service portal for managing E-Verify results and SSN protection.	1. Employee creates an account on myE-Verify. 2. Log in to access their E-Verify case results. 3. Manages SSN lock to prevent unauthorized use. 4. Review any additional notifications or updates related to their employment verification.

Using Technology For Employment Verification Compliance

The process of collecting and verifying documents for any of the above methods might seem overwhelming, but the right tools can make compliance straightforward.

For example, when an employee presents their documents, instead of manually examining security features, OCR technology can instantly spot irregularities that human eyes might miss. 

Similarly, running quick criminal background checks adds an extra slab of certainty to your verification process. When these systems work together, they create a verification process that’s faster and more accurate.