What Is Work Authorization? Employer Compliance Guide

Work authorization, often referred to as employment authorization, refers to an individual’s legal eligibility to work in the United States. This eligibility may come from U.S. citizenship, lawful permanent residency, or specific authorization granted to certain non‑U.S. citizens (such as an Employment Authorization Document or a visa category that permits work). Not all workers need a separate government‑issued work authorization document — many are work‑authorized by virtue of their status.

Federal law requires employers to verify work eligibility for every employee they hire by completing Form I‑9. However, Form I‑9s are not submitted to the government for review or approval; employers must retain the forms and present them only if requested during an audit or investigation. Importantly, these verification requirements apply only to employees. Employers are not required to complete Form I‑9 for independent contractors, casual domestic workers, or individuals employed by a staffing agency (the agency completes the I‑9 for its own employees).

Understanding these requirements helps protect your business from costly penalties and supports consistent, compliant, and nondiscriminatory hiring practices.

What Is Work Authorization?

Work authorization is legal permission from the U.S. government allowing someone to work in the United States. The Immigration Reform and Control Act of 1986 (IRCA) made it illegal to knowingly hire or continue employing unauthorized workers.

Violations of the Form I-9 process carry serious consequences: fines ranging from hundreds to thousands of dollars per violation, increased penalties for repeat offenses, potential criminal prosecution, and reputational damage.

Difference Between Work Authorization and Citizenship

U.S. citizenship provides permanent, unrestricted work authorization. However, work authorization can be provided to citizens, permanent residents (green card holders), and temporary work visa holders.

Employers must treat all individuals authorized to work in the U.S. equally regardless of citizenship status. Imposing stricter verification requirements on non-citizens or preferring citizens over other authorized workers violates IRCA's anti-discrimination provisions.

Categories of Work-Authorized Individuals

Not all workers have the same type of authorization. Here's how the main categories break down:

• U.S. Citizens: Permanent, unrestricted work authorization with no expiration.
• Lawful Permanent Residents: Permanent, unrestricted authorization. Green cards must be renewed every 10 years, but work authorization does not expire.
• Refugees and Asylees: Authorized upon status grant, permanent once granted.
• Temporary Work Visa Holders: Authorization tied to a specific employer or occupation for a fixed period. Common types include H-1B (specialty occupations), L-1 (intracompany transfers), TN (USMCA professionals), O-1 (extraordinary ability), and F-1 OPT (student work authorization).
• EAD Card Holders: Employment Authorization Document holders have temporary work permission, typically valid for one to two years and renewable depending on underlying immigration status.

Employment Authorization Document (EAD)

An Employment Authorization Document (EAD, Form I-766) is a card issued by USCIS proving work eligibility. Common recipients include spouses of certain visa holders, asylum applicants with pending cases, DACA recipients, and Temporary Protected Status holders. EADs are typically valid for one to two years and must be renewed before expiration.

How To Verify Work Authorization: Form I-9 Requirements

The work authorization verification process requires the use of the Form I-9, Employment Eligibility Verification — a federal form every U.S. employer must complete for every newly hired employee.

Form I-9 Completion Process

Form I‑9 now consists of two sections and two supplemental pages, replacing the former three‑section format.

• Section 1 – Employee Information & Attestation: Completed on or before the employee’s first day of work, where the employee provides personal information and attests—under penalty of perjury—to their work authorization status.
• Section 2 – Employer Review & Verification: Completed by the employer within three business days of the employee’s start date. The employer must physically (or remotely, if enrolled in the DHS alternative procedure) examine the original documents presented, ensure they reasonably appear genuine, record the document information, and sign the employer attestation.
• Supplement A – Preparer/Translator Certification: Completed only if the employee used a preparer or translator to assist with Section 1.
• Supplement B – Reverification & Rehire: Replaces the former Section 3. Used for reverification when an employee’s work authorization document expires, for rehired employees within the I‑9 retention period, or to update a legal name change.

Missing required timelines can still result in violations, even when the employee is fully authorized to work, emphasizing the importance of timely and accurate completion.

Acceptable Documents for Employment Eligibility Verification

Employees may present documents from the following lists, which include examples of acceptable documents but are not all‑inclusive.

• List A (proves both identity and work authorization — employee needs only one): U.S. passport, permanent resident card, EAD card, or foreign passport with approved I-94.
• List B (identity only — must be combined with a List C document): State driver's license or ID, government-issued photo ID, military ID.
• List C (work authorization only — must be combined with a List B document): Unrestricted Social Security card, U.S. birth certificate, Native American tribal document.

Employees choose which documents to present. Requesting specific documents or additional documentation based on citizenship status is illegal discrimination.

E-Verify

E-Verify is a free federal online system that electronically verifies employment authorization by comparing Form I-9 data against other government databases. It's a voluntary program for many private employers but mandatory in some states and localities and some employers.

After completing Form I-9, employers must enter the employee's information into the E-Verify system within three business days and receive a response: Employment Authorized, Tentative Non-Confirmation (TNC), or Verification in Process. Employees who receive a TNC must be notified and given the opportunity to contest the result. Never terminate an employee based solely on a TNC.

Re-Verification Requirements

Re-verify employment authorization before documents expire for EAD card holders, certain visa holders, and conditional permanent residents, as required. Notify the employee in advance, have them present updated documentation, and complete Supplement B of the original Form I-9.

Never re-verify U.S. citizens or permanent residents with unrestricted green cards. Their authorization does not expire, and requesting re-verification is prohibited.

Document Retention

Retain I-9 forms for three years after the hire date or one year after employment ends, whichever date is later. Employers are encouraged to store Forms I-9 separately from personnel files. Be sure to maintain originals or authorized copies of completed Forms I-9, and be able to produce the forms within three business days of a government notice of inspection(NOI).

Employer Responsibilities Under IRCA

IRCA establishes three core obligations for employers: verify employee identity and employment authorization through Form I-9 completion, never knowingly hire or employ unauthorized workers, and do not discriminate based on citizenship or national origin.

During the hiring process, you may ask: "Are you authorized to work in the United States?" You may not ask about country of origin, citizenship status (unless the position legally requires it), or request specific documents when completing the Form I-9. Note employers may not ask the individual to complete the Form I-9 before they have accepted an offer of employment.

Immigration regulations change frequently. Always verify current requirements at USCIS.gov or consult an immigration attorney to ensure your practices remain compliant.

Common Work Authorization Compliance Mistakes

Even well-intentioned employers make verification errors that lead to penalties:

• Accepting expired documents. All documents provided to complete the Form I-9 process must be unexpired on the date you examine them. If a document is expired, ask the employee to present a different acceptable document.
• Missing the three-business-day deadline. The Section 2 deadline is firm. Build Form I-9 completion into your onboarding process and set reminders to stay on track.
• Requesting specific documents from employees. Employees have the right to choose which acceptable documents to present. Requiring specific documents is prohibited — present the Lists of Acceptable Documents and let employees decide.
• Failing to re-verify expiring authorization. Track all temporary work authorization expiration dates and set reminders 60 to 90 days in advance. Complete Section 3 before authorization expires.
• Using an outdated Form I-9. Check the exp. date on the form before use. The most recent version of the form can be found on the USCIS.gov website.
• Inconsistent documentation practices. Apply identical and compliant Form I-9 procedures to all employees. If you photocopy documents, do so consistently for every employee to avoid discrimination claims.

Hiring International Employees: What Employers Need To Know

Sponsoring a foreign national for a work visa requires petitioning the U.S. government, and may involve substantial time, cost, and administrative effort. Processing times may range from same-day (TN status at the border) to several months for H-1B and L-1 petitions. Government filing fees, attorney fees, and prevailing wage requirements may apply depending on the visa category.

Visa sponsorship is typically pursued when a role requires specialized knowledge not readily available in the U.S. workforce. If your business is considering sponsoring employees, consulting an immigration attorney early in the process is strongly recommended.

How Paychex Can Help

Work authorization compliance requires organized systems, up-to-date knowledge of regulations, and sound documentation procedures. A missed deadline or inconsistent process can result in costly penalties — even when your employees may lawfully work in the United States.

Paychex offers hiring solutions that guide employers through each step of the onboarding process — so you can hire with confidence.