USCIS Is Using E-Verify to Flag Foreign Nationals With Invalid Work Authorization: What Employers Need to Know

In a significant development that is rippling through workplaces nationwide, USCIS has begun issuing compliance letters to employers who use E-Verify, identifying employees whose work authorization is no longer valid—often without the employer's knowledge. This enforcement trend appears closely tied to a recent USCIS guidance update and disproportionately affects foreign nationals who previously held humanitarian-based work permits, including those under the CHNV (Cuba, Haiti, Nicaragua, Venezuela) parole programs.

What’s Happening?

Employers participating in E-Verify are receiving formal letters from USCIS titled "Further Action Letters." These communications inform employers that one or more employees listed in their E-Verify submissions no longer have valid employment authorization because their underlying immigration status has lapsed. This might happen, for example, if a parole period has expired or if an application for extension was denied or not filed.

Notably, these letters are not standard Tentative Nonconfirmations (TNCs), nor do they initiate any required action under Form I-9 rules. However, they place employers in a difficult position: now aware that an employee may no longer be work authorized, employers may feel compelled to act—despite limited guidance from USCIS on what to do next.

Who’s Affected?

This latest USCIS enforcement effort appears targeted at:

• Individuals who received parole under humanitarian programs (e.g., CHNV) but whose parole has now expired;

• Foreign nationals whose EADs were tied to a status that has since lapsed;

• Employees who may have timely filed for renewal but whose extension is not yet reflected in USCIS databases.

  
  

The compliance letters are particularly alarming because some affected employees were unaware their status had changed, while others had timely filed extensions and believed they remained work authorized under automatic extension provisions.

Why Is This Happening Now?

This action aligns with USCIS’s June 2025 guidance titled "Compliance with E-Verify Requirements in the Context of Terminated or Expired Work Authorization." The guidance clarifies that if USCIS discovers through E-Verify that an employee’s work authorization has ended—especially where parole has expired and no extension is pending—it may notify the employer directly.

According to USCIS, the goal is to “maintain the integrity of the employment verification system” by ensuring that employers are not inadvertently continuing to employ individuals who lack valid authorization. However, critics argue the guidance is vague and places employers at risk of liability if they act prematurely—or not at all.

What Should Employers Do?

1. Do Not Terminate Immediately A USCIS compliance letter is not a legal directive to terminate employment. Employers should not take adverse action based solely on this notice. Doing so could expose the company to discrimination claims under the Immigration and Nationality Act’s anti-discrimination provisions.

2. Follow Standard I-9 Procedures Review the affected employee’s I-9 and any EADs on file. If the employee is within an automatic extension period under 8 CFR § 274a.13(d), they may still be authorized to work—even if E-Verify has not updated their status.

3. Consult Counsel Immediately Immigration counsel can evaluate whether the employee is truly out of status and whether continued employment is legally permissible. Employers should document any review process and ensure decisions are based on verified legal assessments.

4. Communicate Carefully with Employees Engage with affected employees in a non-adversarial manner. In some cases, employees may have timely filed extensions or other pending benefits that preserve their authorization. Work together to gather relevant documentation and confirm current eligibility.

5. Update Internal Compliance Policies Given this trend, employers may wish to revise internal procedures for tracking EAD expiration dates, following up on extension filings, and reviewing USCIS policy updates.

   
   

   What Employees Should Know

Foreign nationals working under an EAD—especially those with humanitarian-based parole—should:

• Monitor the expiration date of both their EAD and underlying status;

• File renewal applications early and keep documentation of timely filing;

• Alert their employer immediately if they receive any USCIS communication regarding status changes;

• Speak to an immigration attorney if there’s any question about continued work authorization.

  
  

Bottom Line

USCIS’s use of E-Verify to initiate direct compliance communication with employers marks a new era of enforcement that relies more heavily on digital status verification and less on traditional I-9 audits. While the policy may be aimed at preserving lawful employment, it creates legal gray areas that place both employers and employees in precarious positions.

Employers must tread carefully—balancing the need to comply with federal law while safeguarding employee rights and avoiding discriminatory action.

For more information or assistance reviewing your compliance practices, contact Katsivalis & Anderson Law at (773) 657-3633.