SB 1965/HB 1830 amends the “Tennessee Lawful Employment Act” to make it mandatory for private employers with 50 or more employees under the same FEIN to use the federal E-Verify employment verification process. This applies to employees working in or outside the state of Tennessee. The law also creates an additional $500 civil penalty per day if the employer fails to use E-Verify.
Employers of between six and 49 employees can comply with the law by:
- enrolling in E-Verify, either directly or through an Employer Agent, to verify employment eligibility; or
- requesting all newly hired employees and “non-employees” to provide one of the identity and employment authorization documents approved by the state of Tennessee.
Employers with fewer than six employees are not required to use E-Verify.
Legislation adopted in 2016 shortens the number of days that an employer has to remedy a non-compliance finding after receipt of an initial order for violation of the state’s E-Verify requirements from 60 to 45.
A “non-employee” is an individual, other than your employee or that of another company, who is paid directly by you in exchange for the individual’s labor or services. You are not allowed nor required to verify another company’s employees. If your place of business contracts services from an individual, then your company must request the non-employee to provide one of the identity or employment authorization documents.