E-Verify in 2025: Could Your Staffing Partner Be Putting You at Risk?
In today’s compliance-heavy environment, businesses that rely on staffing agencies may unknowingly face serious risk. As government enforcement around employment verification increases, one key question emerges:
Is your staffing partner protecting your business—or putting it in danger?
This article draws on current events, compliance law, and HR best practices to help Tennessee employers understand why E-Verify matters more than ever in 2025.
What’s Going On—and Why It Matters
In recent months, headlines across the country have highlighted a growing concern: unauthorized workers being placed in critical industries like construction, logistics, and food production. While the immigration debate continues in political spaces, what’s clear in the business world is this:
Enforcement is ramping up.
Federal and state authorities are:
- Conducting more I-9 audits
- Increasing penalties for noncompliance
- Investigating third-party labor contractors more aggressively than ever before
A recent federal audit of factories in the South exposed multiple instances of improper hiring practices through staffing agencies, including minors and undocumented workers. These violations have led to business license suspensions, legal actions, and public backlash—even for companies who thought they were protected by outsourcing their hiring.
In this environment, due diligence is no longer optional.
What Is E-Verify—and What Does Tennessee Require?
E-Verify is a free, web-based system operated by the U.S. Department of Homeland Security (DHS). It confirms the eligibility of newly hired employees by comparing I-9 form data to federal records.
In Tennessee, the law is clear:
- Private employers with 35 or more employees must use E-Verify for all new hires
- Smaller employers must either use E-Verify or retain approved documentation
- Noncompliance can lead to civil penalties, license suspension, and disqualification from state contracts
The Problem With Non-Compliant Staffing Agencies
Unfortunately, not all staffing agencies follow the rules. And that’s where many businesses get burned.
Some bad actors:
- Skip the E-Verify process entirely
- Falsify or ignore I-9 documentation
- Mislead clients about their compliance procedures
- Place unauthorized workers to fill roles quickly, regardless of legality
These agencies may appear efficient, low-cost, or easy to work with—but their shortcuts can lead to serious legal and reputational consequences for your company.
You are still legally responsible for workers placed at your job site—even if a third party hired them.
E-Verify Compliance Checklist for Tennessee Employers
To protect your company, ask your staffing partner:
- Do you use E-Verify for all new hires?
- Can you provide audit-ready documentation?
- Are you fully compliant with Tennessee law?
- How often are your processes reviewed by legal or HR experts?
If your provider hesitates or avoids answering clearly, that’s a red flag.
Final Thought: The Risk Isn’t Just Theirs—It’s Yours
E-Verify is more than a government system—it’s a safeguard for your business.
With greater public scrutiny, rising enforcement, and visible legal cases tied to staffing firms, choosing a compliant partner is a business-critical decision in 2025.
Want to protect your business from staffing-related compliance risks?
Our free eBook, “Staffing Compliance in 2025: What Tennessee Employers Need to Know”, breaks down the laws, red flags, and smart steps every HR and operations leader should take.