Understanding Work Authorization Basics
Before hiring anyone in the United States, it’s important to understand what “work authorization” really means. In simple terms, work authorization is legal permission for someone to work in the U.S. Not everyone who lives here automatically has the right to work. Let’s break down the basics so you can make sure your employees are eligible to work.
Who Can Work in America?
There are several categories of people who may be allowed to work in the U.S. The main groups are:
| Status | Description | Work Authorization? |
|---|---|---|
| U.S. Citizens | Born in the U.S. or naturalized through immigration process | Yes, always authorized |
| Permanent Residents (Green Card Holders) | Not citizens, but have a green card allowing them to live and work here permanently | Yes, always authorized |
| Non-Citizen Workers (Visa Holders) | Foreign nationals with specific visas or permits allowing them to work temporarily or under certain conditions | Depends on visa type and conditions |
Citizens vs. Permanent Residents vs. Non-Citizen Workers
U.S. Citizens: Anyone born in the U.S. or who has gone through the naturalization process is considered a citizen. They can legally work for any employer, anywhere in the country.
Permanent Residents: These individuals have what’s called a Green Card. They aren’t citizens, but they have almost all the same rights as citizens when it comes to employment—they can work for most U.S. employers without special permission.
Non-Citizen Workers: This group includes people here on various types of visas or permits (like H-1B, L-1, EAD, etc.). Their ability to work depends on the type of visa or permit they hold and sometimes even on their employer or job position.
Why Does Work Authorization Matter?
If you hire someone who isn’t legally allowed to work in the U.S., your business could face serious penalties—including fines and possible criminal charges. That’s why it’s critical to check every employee’s eligibility before they start working for you.
2. Why Work Authorization Matters for Employers
Legal Obligations for U.S. Employers
If you’re hiring employees in the United States, making sure every worker is authorized to work here isn’t just a good idea—it’s the law. As an employer, you are legally required to verify that each employee you hire is eligible to work in the U.S. This process usually starts with completing and storing Form I-9 for every new hire, regardless of their nationality or immigration status.
Risks of Non-Compliance
Not following these rules can lead to serious problems for your business. Hiring someone who isn’t authorized to work can result in government audits, hefty fines, and even criminal charges in severe cases. Even if it was an honest mistake, not having proper documentation puts your company at risk.
Common Risks and Penalties
| Violation Type | Potential Consequences |
|---|---|
| Failure to Complete I-9 Forms Properly | Fines from $252 to $2,507 per form (as of 2024) |
| Knowingly Hiring Unauthorized Workers | Civil fines up to $25,076 per unauthorized worker; possible criminal charges for repeated offenses |
| Document Fraud or Forgery | Civil penalties and potential criminal prosecution |
The Importance of Verifying Work Eligibility
Verifying work authorization protects your business from legal trouble and helps build a trustworthy workplace. It also ensures fair treatment for all employees by applying the same verification process equally. Using tools like E-Verify (an online system that checks work eligibility) can make this process easier and more reliable.
Key Takeaways for Employers:
- You must check everyone’s eligibility—no exceptions.
- Keep accurate records (like Form I-9) for every employee.
- Stay updated on any changes in employment laws and requirements.
- If you have questions, consult with an immigration attorney or HR expert.
Understanding and following work authorization rules isn’t just about paperwork—it’s about protecting your business, treating employees fairly, and staying compliant with U.S. law.
3. Common Types of Work Authorization Documents
When hiring employees in the United States, it’s important to verify that they have the proper documents to legally work. There are several common types of work authorization documents that you’ll encounter. Here’s a breakdown of what each one means and what you should look for.
Green Cards (Permanent Resident Cards)
A Green Card, officially known as a Permanent Resident Card, proves that someone has been granted permanent residency in the U.S. People with a Green Card can live and work in America indefinitely. Green Cards are typically valid for 10 years and must be renewed before they expire.
What to check:
- Name matches the employees other identification
- Card is not expired
- The photo matches the person presenting it
Employment Authorization Documents (EADs)
An EAD, sometimes called a “work permit,” allows certain non-citizens to work in the U.S. temporarily. The EAD is issued by U.S. Citizenship and Immigration Services (USCIS) and looks like a plastic ID card.
What to check:
- The card is current (not expired)
- The individual’s name matches their other IDs
- There are no restrictions that would prevent employment with your company
Visas
Some foreign nationals may have visas that allow them to work for specific employers in the U.S. Common work visas include H-1B, L-1, and O-1. These visas often have employer-specific conditions and expiration dates.
What to check:
- Visa type and category (for example, H-1B)
- Expiration date of the visa
- If the visa is tied to your company as an employer
Social Security Cards
A Social Security card is required for payroll and tax purposes. However, not all Social Security cards authorize employment. Some cards may be marked with “Not Valid for Employment” or “Valid for Work Only with DHS Authorization.” Always pay attention to these notes.
| Document Type | Main Purpose | Key Details to Check |
|---|---|---|
| Green Card (Permanent Resident Card) | Permanent right to live and work in the U.S. | Name, expiration date, photo match |
| EAD (Employment Authorization Document) | Temporary work permission for non-citizens | Name, expiration date, any restrictions |
| Visa (e.g., H-1B, L-1) | Work authorization tied to specific employer/job | Type/category, expiration date, employer match |
| Social Security Card | Required for tax purposes; may restrict work eligibility | Name match, any restrictive notes on card |
Understanding these documents helps ensure you’re hiring employees who are eligible to work in America. Always review each document carefully and keep records as required by law.
4. How to Properly Verify Employee Eligibility
Step-by-Step Guide: Completing the I-9 Form
The I-9 form is required for every employee hired in the United States. Here’s a simple breakdown of how to complete it:
| Step | Action | Who Completes It | Deadline |
|---|---|---|---|
| 1 | Employee fills out Section 1 (Personal Info & Attestation) | Employee | First day of work |
| 2 | Employer reviews documents and completes Section 2 (Verification) | Employer | Within 3 business days of hire |
| 3 | If applicable, complete Section 3 (Reverification and Rehires) | Employer | As needed during employment |
I-9 Acceptable Documents Categories:
- List A: Documents that prove both identity and work authorization (e.g., U.S. passport)
- List B: Documents that prove identity only (e.g., driver’s license)
- List C: Documents that prove work authorization only (e.g., Social Security card)
The employee must provide either one document from List A, or a combination of one from List B and one from List C.
Participating in E-Verify
E-Verify is an online system that allows employers to check if their new hires are eligible to work in the U.S. Here’s how you can use it:
- Register your company: Sign up for E-Verify on the Department of Homeland Security website.
- Create a case: After completing the I-9, enter your employee’s information into E-Verify within three business days of their start date.
- Review results: E-Verify will confirm eligibility or ask for more action if needed. Follow the prompts provided by the system.
- Keep records: Save all confirmation numbers and any correspondence for your files.
Best Practices for Documentation and Recordkeeping
- Store I-9 forms separately: Keep them in a dedicated file—do not mix with regular personnel files.
- Retain forms properly:
| If Employment Ends… | You Must Keep I-9 For… |
|---|---|
| The employee worked less than 2 years | 3 years after hire date |
| The employee worked more than 2 years | 1 year after termination date |
- Avoid discrimination: Always apply the same process to every new hire, regardless of their appearance or accent.
Troubleshooting Common Issues
- If documents look suspicious or don’t match, don’t accept them—but don’t make assumptions based on someone’s background. Ask for alternative acceptable documents from the lists above.
Your Checklist for Verifying Work Authorization:
- I-9 Form completed correctly and on time?
- I-9 supporting documents reviewed and verified?
- E-Verify used, if applicable?
- I-9 forms stored securely and retained for correct period?
This process helps ensure you’re compliant with U.S. law and protects your business from costly mistakes.
5. Staying Updated and Handling Changes in Status
Why Staying Current Matters
Work authorization laws and requirements in the United States change frequently. As an employer, it’s important to stay on top of these updates to avoid legal trouble and ensure your employees are always eligible to work.
Tips for Keeping Up with Regulations
- Sign up for official updates: Subscribe to email alerts from the U.S. Citizenship and Immigration Services (USCIS) or the Department of Homeland Security (DHS) for the latest news.
- Attend webinars or training sessions: Many government agencies offer free or low-cost events explaining new rules and forms.
- Join HR associations: Groups like SHRM (Society for Human Resource Management) share valuable compliance information and tips.
- Consult legal experts: If you’re unsure about a regulation, reach out to an immigration attorney or specialist.
Re-Verifying Employee Work Authorization
You may need to re-verify an employee’s eligibility if their work authorization has an expiration date. Make sure you track these dates carefully.
| When to Re-Verify | How to Re-Verify | What Documents to Request |
|---|---|---|
| The employee’s current work authorization document is about to expire. | Ask the employee for updated documents before the old ones expire. | A new Employment Authorization Document (EAD), updated green card, or other acceptable I-9 documents. |
| You receive notification of a change in immigration status. | Request proof of continued eligibility to work in the U.S. | An updated visa, work permit, or permanent resident card. |
What to Do If Authorization Expires or Changes
- If an employee’s work authorization expires: You must stop allowing them to work until they provide new, valid documentation. Continuing employment without authorization can lead to fines and penalties.
- If there’s a change in status: Ask the employee for updated documents and complete Section 3 of Form I-9 as needed. Keep all records secure and confidential.
- If an employee cannot provide new documents: You may need to end their employment according to federal law. Document every step you take for your records.
Quick Reference: Common Scenarios and What To Do
| Status Change Scenario | Your Next Step |
|---|---|
| Employee provides a new EAD card before expiration date | Update Form I-9 with new document information; no interruption of work needed. |
| No new documents by expiration date | Suspend employment until valid documents are presented. |
| Status changes from temporary visa to green card holder | Update records with new permanent resident card; complete Section 3 on Form I-9. |
Stay Organized!
Create reminders for upcoming expiration dates and keep your files organized so you’re always prepared for re-verification. This helps protect your business and supports your team members through any changes in their status.
