North Carolina E-Verify Law Starts to Impact Employers

October 2nd, 2012 by

The E-Verify system is a federal internet-based tool that allows you to determine the eligibility of employees to work in the United States. As of yesterday, Oct 1, 2012, North Carolina companies with 500 or more employees are required by law to start implementing the federal E-Verify system to verify work authorization for all new hires. You must complete online training and sign a Memo of Understanding before you use the system.

Make sure you are familiar with your obligations under the new law. Review the different scenarios below:

You are a federal contractor or subcontractor with the FAR E-Verify clause in your contract

If your company has not yet enrolled in E-Verify, then you have 30 days from the date of contract award to enroll, and 90 days from the date you enroll with E-Verify to initiate verification queries for employees already on your staff who will be working on the contract and to begin using the system to verify newly hired employees. After this 90-day phase-in period, you will be required to initiate verification of each newly hired employee within three business days after their start date. To meet this three-day requirement, employers may initiate verification of a newly hired employee before their start date if the employee has accepted the job offer and filled out the Form I-9.

Please note that pre-screening of job applicants is not allowed; the system may be used for new hires only after the employee has been offered the job and has accepted. Please also remember that you must continue to use E-Verify for the life of the contract for all your new hires, whether or not they are employees assigned to the contract. For more information on the FAR E-Verify clause, go to http://j.mp/ev-fa.

You are not a federal contractor with the FAR clause but want to voluntarily use E-Verify

You must use the federal E-Verify system for all new hires for each hiring site that you choose to use E-Verify. The hiring site is typically where the employee completes the I-9 form. (Note: It may be different from where the form is verified – the verification site.)

However, you can exclude hiring sites if not required by state or federal law to use E-Verify. For more information, go to http://j.mp/11-ev.

You are a North Carolina employer

North Carolina employers will be required to use the federal E-Verify system based on the following schedule: [Note: North Carolina municipalities and counties were required to use it on October 1, 2011.]

  • October 1, 2012 for employers with 500 or more employees (and governmental agencies);
  • January 1, 2013 for employers with 100 to 499 employees; and
  • July 1, 2013 for employers with 25 to 99 employees.

For North Carolina, covered employers are only required to use E-Verify for all employees who work in North Carolina. If you have employees who work in other states but they complete their I-9 paperwork at the North Carolina hiring site, they must be run through E-Verify. If you are hiring sales reps or other employees who will not work in North Carolina, you must consider three things in determining whether you will be required to use E-Verify:

  • Is their hiring site a site in North Carolina for which you are using E-Verify? If yes, they must be run through E-Verify.
  • If not, does the state(s) where they are working require E-Verify and do you meet the criteria? If so, they must be run through E-Verify.
  • If not, is their hiring site a location for which you are already using E-Verify? If so, they must be run through E-Verify.

At a future date, the North Carolina Department of Labor will issue information as a result of hearings on E-Verify to clarify the North Carolina E-Verify requirement. For more information, go to http://j.mp/ev-nc.

None of the above conditions apply to your organization

If none of the above applies to you, check the laws for states where you do business to determine if you are required by state law to use the federal E-Verify system.

If you have questions about E-Verify, please contact a member of CAI’s Advice and Counsel Team at 919‑878‑9222 or 336‑668‑7746.

Photo Source: Victor1558

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