Hiring Rules for US Employers

In the hiring process, you must ensure that every individual you plan to employ is authorized to accept employment in the U.S. Some individuals are automatically authorized to work based on their immigration status, while others must apply for separate employment authorization.

The hiring process includes completing Form I-9, issued by U.S. Citizenship and Immigration Services. Both you and each new hire must fill out this form to verify employment eligibility. You are also required to collect each employee's name and Social Security number for Form W-2. The Social Security Administration offers verification services if an employee does not have a Social Security card readily available.

All employees must complete Form W-4 to help you withhold the correct federal income tax from their paychecks based on allowances, deductions and credits. Additionally, you must report new hires to the National Directory of New Hires, which helps enforce child support obligations.

Depending on your state, you may be required to obtain workers' compensation insurance to cover workplace injuries. You must also comply with Occupational Safety and Health Administration regulations regarding workplace safety, especially when handling hazardous materials, tools and equipment. Background checks are permitted in many jurisdictions for certain jobs; these can provide critical information about prospective employees but must be conducted carefully to comply with applicable laws.

All workers, regardless of birthplace, are entitled to work free from exploitation, unsafe conditions and retaliation. The Immigration and Nationality Act prohibits discrimination based on citizenship status and national origin in hiring, firing, recruiting and referrals for a fee.

Following the detailed rules

Employers must treat U.S. citizens, non-U.S. citizen nationals, lawful permanent residents, and individuals granted asylum or refugee status consistently in the hiring process. Exceptions apply only when a law, regulation, executive order or government contract requires preference for certain citizenship statuses.

The Equal Employment Opportunity Commission investigates claims of national origin discrimination against employers with 15 or more employees. Organizations such as the National Immigration Law Center advocate for immigrant workers' rights, provide know-your-rights training and challenge labor abuses in court.

Immigrants make up 18.1% of the U.S. workforce, filling essential roles across industries and contributing significantly to economic growth. About 35% of immigrants work in traditionally underpaid sectors such as agriculture, construction and domestic work.

Immigrant workers are often vulnerable to exploitation, including wage theft, unsafe working conditions, limited advancement opportunities and retaliation for reporting abuses. Protecting all workers strengthens communities by promoting dignity, economic security and opportunity. Safe workplaces allow employees to report abuse or labor violations without fear of deportation or employer retaliation.

Do not assume that only U.S. citizens are authorized to work in the United States. Many non-U.S. citizens hold valid employment authorization. The IRS and SSA instruct employers that workers may begin employment while waiting for a Social Security number, and wages must be reported even before the SSN is issued. If you use E-Verify, you may be instructed to delay final verification until the employee receives an SSN, but the employee may work as long as Form I-9 has been properly completed.

Finally, keep in mind that rules and laws can often change with little notice, so stay in close touch with qualified legal and financial professionals.