Sign in Subscribe

A New E-Verify Alert: What Employers Must Know About Terminated Work Permits

A New E-Verify Alert: What Employers Must Know About Terminated Work Permits

Imagine one of your most reliable employees suddenly loses their right to work, and the only warning you receive is a line item on a government notification that you didn't know to look for. This isn't a hypothetical scenario—it's the new reality for thousands of U.S. employers following a major immigration policy shift.

The Department of Homeland Security (DHS) has rolled out a new E-Verify feature that directly impacts how you manage your workforce, and failing to understand it could put your business at serious risk. As a business immigration attorney who has guided countless companies through complex compliance issues, I've seen how sudden policy shifts can sow chaos. Let’s break down what this new E-Verify update means for your business and how to navigate it correctly.

What's Happening and Why? The Policy Shift Behind the Alert

The catalyst for this change was a U.S. Supreme Court decision on May 30, 2025, which allowed DHS to move forward with terminating the parole programs for individuals from Cuba, Haiti, Nicaragua, and Venezuela (CHNV). This decision affects a staggering number of people—approximately 532,000 individuals who had been granted parole and the ability to work in the United States. Following the court's decision, DHS began sending termination notices directly to these individuals, revoking their parole and their Employment Authorization Documents (EADs), more commonly known as work permits.

A critical detail for employers is that DHS is not notifying businesses directly when an employee's work permit is revoked. The responsibility falls squarely on the employer to proactively identify these workers through the federal E-Verify system.

This creates a precarious situation, as an employee may possess a physical EAD card that appears perfectly valid, with a future expiration date, even though their legal authorization to work has been terminated by the government.

The New E-Verify "Status Change Report": Your New Compliance Tool

So, how are you supposed to know if an employee's work permit has been revoked? The answer is the new "Status Change Report" within E-Verify. This report is designed to bridge the information gap, allowing employers to see which of their employees, who previously presented an EAD for their Form I-9, have had their work authorization terminated by DHS.

How to access and use the report:

  1. Log in to your E-Verify account.
  2. Navigate to the "Reports" tab.
  3. Select the "Status Change Report" to view data for employees whose status may have changed.

If an employee's name appears on this report, it is a signal that you must take immediate action to reverify their employment eligibility.

The Employer's Dilemma: Walking the Compliance Tightrope

This new process forces employers to walk a fine line between two significant legal risks: employing unauthorized workers and engaging in discrimination against protected workers.

Risk #1: Steep Penalties for Unauthorized Employment

The consequences for knowingly continuing to employ a worker without valid authorization are severe, and many expect criminal prosecution of employers to surge under the Trump Administration. I always advise my corporate clients that ignorance is not a defense, and the government has shown it is not afraid to impose harsh penalties.

Consider these real-world examples:

  • Massive Civil Fines: In 2017, Asplundh Tree Expert Company was ordered to pay a record $95 million for hiring unauthorized workers. More recently, three Denver businesses were fined a combined $8 million for similar violations, and a Chicago-area company was fined over $329,000. Fines can range from $548 to over $21,000 per employee.
  • Criminal Prosecution: In May 2025, a Detroit-area manager was criminally charged for hiring unauthorized workers, facing up to ten years in prison and a $250,000 fine. Other cases have seen business owners and managers plead guilty to federal crimes for similar offenses.

Risk #2: The Dangers of Discrimination

On the other hand, an employer who overzealously tries to root out unauthorized workers can easily violate federal anti-discrimination laws. The Immigration and Nationality Act (INA) explicitly prohibits discrimination based on a person's national origin or citizenship status.

Here’s what you cannot do:

  • Do not single out employees: You cannot decide to reverify an employee's documents just because you know they are from Haiti, Venezuela, or another country. Audits and reverifications must be based on a legitimate, non-discriminatory trigger, like the new E-Verify report.
  • Do not engage in "unfair documentary practices": You cannot demand to see specific documents or reject valid documents an employee presents from the acceptable I-9 lists. The choice of which valid document to present belongs to the employee.

I've seen well-intentioned employers create huge legal liabilities for themselves by making assumptions. For example, they might hear about the CHNV program termination and decide to re-check the documents of all their Hispanic employees. This is a classic example of national origin discrimination and can lead to costly lawsuits and punishing government investigations.

A Step-by-Step Guide for Employers

Navigating this requires a clear, consistent, and neutral process. If you are an employer using E-Verify, here are the steps I recommend you take right now.

1. Regularly Check the E-Verify Status Change Report. Make this a routine part of your HR compliance checklist. The government has provided this tool; you are expected to use it.

2. If an Employee is Flagged, Do Not Terminate Them Immediately. The report is a starting point, not a final judgment. Your next step is to conduct a reverification.

3. Conduct Reverification Correctly. Schedule a private meeting with the employee. Calmly explain that their name appeared on a DHS report and that federal regulations require you to reverify their employment authorization. Use Form I-9, Supplement B (formerly Section 3) for this process.

4. Allow the Employee to Present New Documents. The employee may have another form of work authorization. For example, more than half of the CHNV parolees have pending applications for asylum, a green card, or Temporary Protected Status (TPS), and some have secured a new status. They must be allowed to present any acceptable combination of documents from the Form I-9 Lists of Acceptable Documents.

5. If No Other Work Authorization Exists, Terminate. This is the most difficult step. If your employee cannot provide valid, alternative work authorization, you are legally required to end the employment relationship. Continuing to employ them unfortunately puts you and your business in legal jeopardy.

6. Document Everything. Keep meticulous and confidential records of the entire process for each affected employee: the date you checked the report, your meeting with the employee, the documents presented (or not presented), and your final action. This documentation will be your best defense in any potential audit.

A Final Note on Empathy

It's important to remember the human element in this situation. Many of these people facing sudden loss of their work authorization were admitted to the U.S. under a lawful humanitarian process and are now in a state of profound uncertainty. This isn't just about paperwork—it's about people's lives, families, and livelihoods. Approaching these conversations with professionalism, discretion, and empathy is not only the right thing to do but can also help mitigate legal risks.

Key Takeaways and Your Next Steps

To protect your business, you need to be proactive and precise.

  • The Policy: DHS has terminated the CHNV parole program, revoking work permits for approximately 532,000 people.
  • Your Tool: You must use the new E-Verify "Status Change Report" to identify affected employees in your workforce.
  • Your Process: You must reverify flagged employees using Form I-9, Supplement B, but you must do so without discriminating based on national origin.
  • The Stakes: Failure to comply can lead to huge fines and even criminal charges for employing unauthorized workers.

Navigating these rules is challenging, and the landscape is constantly shifting. If you're an employer feeling uncertain about your compliance obligations, or if you're an individual whose status has been affected, it's crucial to seek experienced legal counsel. At Locke Immigration Law, we specialize in creating clear, compliant strategies for businesses and finding creative solutions for individuals.