Do Employers Have An Obligation to Verify That an Independent Contractor is Authorized to Work in the USA?

I was asked this question…

“Do Employers Have An Obligation to Verify That an Independent Contractor is Authorized to Work in the USA?”

I found this info provided by Mercer Law (June 2025) >>>

The individual or business that is contracting with the independent contractor is not required to complete Form I-9 for the contractor.

Remember, however, that federal law prohibits individuals or businesses from contracting with an independent contractor KNOWING that the independent contractor is not authorized to work in the U.S.

Under this standard, an employer will only be held liable for knowing conduct.

So…

If you happen to know a contractor isn’t authorized to work in the United States, then you have an obligation to not contract with that independent contractor.

However, if you’re working with a contractor and it turns out, unbeknown to you, that the independent contractor was not authorized to work, then you would not have committed a violation.

And how would USCIS determine what you knew about an independent contractor? Presumably, it would be from uncovering evidence showing that you obviously knew a contractor wasn’t authorized to work.

Note that the above guidelines apply only with bona fide independent contractors.

Here are official resources:

https://www.e-verify.gov/supplemental-guide-for-federal-contractors-60-subcontractors-independent-contractors-and-1

https://www.uscis.gov/i-9-central/completing-form-i-9/exceptions#:~:text=casual%20domestic%20services.-,Independent%20Contractors,to%20complete%20Form%20I%2D9.

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Wendy Sellers
Wendy Sellers, known as “The HR Lady®,” is a dedicated HR consultant and business partner of all size businesses, a conference speaker, and management trainer who specializes in understanding the unique culture and goals of organizations in order to improve business outcomes.

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