Tennessee . Hiring . Updated April 2026

Tennessee's Lawful Employment Act mandates E-Verify for larger employers.

The Tennessee Lawful Employment Act requires employers with 35 or more employees to use the federal E-Verify system to confirm the work authorization of all new hires. Smaller employers have the option to use E-Verify or retain specific qualifying documents. Compliance is required within three business days of hire.

Threshold
35+ Employees
Requirement
E-Verify System
Timing
3 Business Days
Active

Tennessee Lawful Employment Act (E-Verify)

Ensures all new hires are authorized to work in the U.S. via E-Verify or document retention.

Block
Flag
Always running

What those rules do as a Tennessee shift is created.

Teambridge integrates the E-Verify requirements directly into your hiring workflow, ensuring compliance checks are performed automatically based on your company's size and the state's mandates.

Blocking Non-Compliant Hires

For employers with 35 or more employees, Teambridge will block the finalization of a new hire's onboarding if the E-Verify process is not initiated or completed within the specified timeframe, preventing potential penalties.

Flagging Document Requirements

For smaller employers opting for document retention, Teambridge will flag missing or insufficient documentation that satisfies the Lawful Employment Act's requirements, prompting action before the deadline.

Deadline Reminders

Teambridge provides automated notifications and reminders to ensure E-Verify submissions or document collections are completed within the three business day window from the hire date.

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The rule, plainly stated

Tennessee's Lawful Employment Act requires E-Verify for most.

The Tennessee Lawful Employment Act, codified at Tenn. Code Ann. § 50-1-703, dictates the verification methods employers must use to confirm the employment eligibility of new hires in the state. The requirements vary based on the employer's size.

Tenn. Code Ann. § 50-1-703

"(a) Except as provided in subsection (c), each employer in this state shall enroll in the E-Verify program... and shall verify the work authorization of each new employee through the E-Verify program. The employer shall verify the work authorization of each new employee through the E-Verify program within three (3) business days of the employee's first day of employment."

"(b) An employer that is not required to enroll in the E-Verify program pursuant to subsection (a) may elect to verify the work authorization of each new employee through the E-Verify program or by retaining copies of the documents required to be examined by the employer under 8 U.S.C. § 1324a."

"(c) An employer that employs thirty-five (35) or more employees shall be required to enroll in the E-Verify program..."

Employer Size and Verification Method

For employers with 35 or more employees, enrollment and use of the federal E-Verify program is mandatory. This system electronically compares information from an employee's Form I-9 with data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility.

Employers with fewer than 35 employees have more flexibility. They can choose to either enroll in and use the E-Verify system or, alternatively, verify employment eligibility by retaining copies of the documents that are required for completion of the federal Form I-9 (e.g., driver's license, Social Security card, U.S. passport, permanent resident card).

Timing and Compliance

Regardless of the method chosen, employers must complete the verification process within three business days of the new employee's first day of employment. Failure to comply can result in penalties, including civil penalties and, in some cases, suspension or revocation of business licenses. The state regularly conducts audits to ensure adherence to these provisions.

On autopilot

Teambridge manages Tennessee E-Verify compliance automatically.

Teambridge removes the complexity of the Lawful Employment Act by integrating compliance directly into your hiring and onboarding workflows, adapting to your company's size and state mandates.

01 . Intelligent Onboarding

Size-Based E-Verify Trigger

Teambridge automatically determines if your Tennessee entity meets the 35+ employee threshold for mandatory E-Verify usage. For qualifying employers, the E-Verify process is initiated seamlessly as part of the new hire's onboarding, ensuring timely submission.

02 . Document Management for Smaller Employers

Streamlined I-9 & Document Retention

If your company has fewer than 35 employees, Teambridge facilitates the collection and secure retention of necessary I-9 documentation, providing clear prompts for employees and ensuring all required documents are present and valid, meeting the alternative compliance option.

03 . Deadline Automation & Alerts

Three-Day Window Enforcement

Teambridge tracks the three-business-day window from the hire date for E-Verify submissions or document collection. Automated alerts and task assignments are generated for HR teams and employees, preventing missed deadlines and ensuring proactive compliance.

04 . Audit Readiness & Reporting

Centralized Compliance Records

All E-Verify case numbers, verification statuses, and retained I-9 documents are securely stored and easily accessible within Teambridge. This provides a clear audit trail, simplifying responses to state inquiries and ensuring readiness for compliance checks.

FAQ

People also ask.

What is the Tennessee Lawful Employment Act?

The Tennessee Lawful Employment Act (Tenn. Code Ann. § 50-1-703) is a state law that requires employers in Tennessee to verify the work authorization of all new employees. For employers with 35 or more employees, this verification must be done through the federal E-Verify program. Smaller employers can use E-Verify or retain copies of I-9 qualifying documents.

Which Tennessee employers must use E-Verify?

Employers in Tennessee that employ 35 or more employees are legally required to enroll in and use the federal E-Verify program to confirm the work authorization of all new hires. This threshold is based on the total number of employees, not just those in Tennessee.

What are the options for employers with fewer than 35 employees?

Employers with fewer than 35 employees have two options: they can voluntarily enroll in and use the E-Verify program, or they can verify employment eligibility by retaining copies of the specific documents required to complete the federal Form I-9, such as a U.S. passport, permanent resident card, or a driver's license combined with a Social Security card.

How quickly must E-Verify or document verification be completed?

The verification process, whether through E-Verify or document retention, must be completed within three business days of the employee's first day of employment. This is a strict deadline and failure to meet it can result in penalties.

What are the penalties for non-compliance with the Lawful Employment Act?

Non-compliance can lead to civil penalties, which can be substantial. For repeated violations, employers may face more severe consequences, including the suspension or revocation of their business licenses. The state conducts audits to ensure compliance.

Does Tennessee have its own state-specific I-9 form?

No, Tennessee does not have its own state-specific I-9 form. Employers in Tennessee must use the federal Form I-9, Employment Eligibility Verification, as required by U.S. Citizenship and Immigration Services (USCIS). The state law specifies how the information from the I-9 is then used (E-Verify or document retention).