Short answer. Yes for private employers with 35 or more employees. A penalty is stated.
At a glance
- Private employers
- Private employers with 35 or more full-time equivalent employees under the same FEIN must use E-Verify for new hires. Smaller private employers may choose E-Verify or the other method the law allows.
- In effect since
- January 1, 2023 for private employers with 35 or more full-time equivalent employees.
- Penalty
- $500 for failing to enroll in E-Verify. For knowing violations, $500 for a first offense, rising to as much as $2,500 for repeat offenders.
- Who enforces or publishes it
- Tennessee Department of Labor and Workforce Development (Tennessee Lawful Employment Act)
In the official wording
Private employers
"private employers with 35 or more full-time equivalent employees under the same FEIN are required to use"
Effective date
"Effective January 1, 2023, private employers with 35 or more"
Penalty
"There is also a $500 penalty for failing to enroll in E-Verify"
Three example businesses
- 8 employees, private, no state contract: Not required by the headcount rule. See why
- 40 employees, private, no state contract: Required. See why
- 40 employees, private, with a state contract: Required. See why
Your own numbers: open the checker for Tennessee.
Worth knowing
The headcount is full-time equivalents under one FEIN, not a simple head count.
Not stated on the pages we opened: a rule for public employers, a rule for state contractors and limits on how E-Verify is used.
Hiring someone remote in New Jersey? MCC Solutions acts as an I-9 authorized representative: we meet the new hire, examine the original documents and complete Section 2 for you, from $65 per employee. E-Verify cases are created by the employer, in its own E-Verify account; we don't create them.
Official sources
General information, not legal advice. Checked November 2026. Federal rules on Form I-9 and E-Verify timing are on the all-states table.
Common questions
Do private employers in Tennessee have to use E-Verify?
Private employers with 35 or more employees. Private employers with 35 or more full-time equivalent employees under the same FEIN must use E-Verify for new hires. Smaller private employers may choose E-Verify or the other method the law allows. The official wording: "private employers with 35 or more full-time equivalent employees under the same FEIN are required to use."
When did the Tennessee rule take effect?
January 1, 2023 for private employers with 35 or more full-time equivalent employees.
What penalty does Tennessee law set?
$500 for failing to enroll in E-Verify. For knowing violations, $500 for a first offense, rising to as much as $2,500 for repeat offenders.
Is a Form I-9 still needed in Tennessee?
Yes. Every employer completes Form I-9 for each hire under federal law, and an E-Verify case is created from the finished form, so the state rule adds to the I-9 rather than replacing it.
All states: E-Verify requirements by state · Ohio · Utah