How should businesses verify employee eligibility to work?

Verifying Employee Eligibility to Work in Maryland

When hiring employees in Maryland, businesses must verify that each employee is legally authorized to work in the United States. This process is essential for compliance with federal and state regulations and helps avoid penalties related to employment eligibility violations.

Step-by-Step Employee Eligibility Verification

• Complete Form I-9: Employers must have each new hire complete the Form I-9, Employment Eligibility Verification, no later than the first day of employment. This form collects information to confirm the employee’s identity and work authorization.
• Review Acceptable Documents: Employers must examine original documents presented by the employee to verify identity and employment authorization. These documents are listed on the Form I-9 List of Acceptable Documents and include items such as a U.S. passport, permanent resident card, or driver’s license combined with a Social Security card.
• Retain Form I-9: Maintain completed Form I-9s for all current employees and for a specified period after employment ends, typically three years after the hire date or one year after termination, whichever is later.
• Use E-Verify (Optional but Recommended): Maryland employers can use the federal E-Verify system to electronically confirm employment eligibility. While not mandatory statewide, E-Verify helps reduce hiring risks and integrates with payroll and HR systems for automation.

Maryland-Specific Considerations

• Compliance with State Labor Laws: Ensure that employee verification practices align with Maryland’s labor regulations, including non-discrimination requirements during the hiring process.
• Recordkeeping: Keep all employment eligibility records organized and secure to facilitate audits or inspections by federal agencies such as the Department of Homeland Security or the Department of Labor.
• Integration with Payroll and Tax Reporting: Accurate employee eligibility verification supports correct payroll tax withholding and reporting to Maryland tax authorities.

Operational Tips

• Train HR staff on proper Form I-9 completion and document review to avoid common errors.
• Implement automated workflows to track Form I-9 deadlines and E-Verify status.
• Regularly audit your hiring processes for compliance and update procedures as federal or Maryland regulations evolve.