Marketplace Morning Report Why employers may not know whether a new hire is undocumented
Jul 22, 2025
The complexities of the current housing market are highlighted, revealing challenges due to high mortgage rates. Experts discuss potential delays in home sales recovery and Universal Music Group's stock offerings. The podcast then dives into employers' responsibilities for verifying employment eligibility, particularly amid evolving immigration policies. While the E-Verify system is prevalent, its reliability in identifying unauthorized workers raises concerns, pointing to the need for more robust regulations.
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Work Authorization Revocations Create Employer Dilemma
- The Trump administration canceled work authorizations for many temporary protected status immigrants, causing sudden loss of legal work rights.
- Employers were not previously required to reverify workers after hiring, causing uncertainty about how to handle changed statuses.
E-Verify's Limitations on Undocumented Workers
- Employers often don't know if a new hire is undocumented due to limitations in the work authorization verification system called E-Verify.
- E-Verify approves most unauthorized workers because it's easy to present false documents and employers lack incentive to scrutinize them closely.
Recheck Legal Status Guidance Needed
- Employers using E-Verify should recheck workers' legal status, especially those with revoked temporary protected status.
- However, they need clear, consistent guidance from DHS on whether these rechecks are mandatory and how to comply.