Form I-9 employment eligibility verification
All U.S. employers, including those in Texas, are required to complete Form I-9, Employment Eligibility Verification, for each individual hired for employment in the United States. Form I-9 ensures verification of the employee's identity and authorization to work. The employee must complete Section 1 by the first day of employment, while the employer reviews documentation and completes Section 2 within three business days of the employee’s start date. Employers must retain each I-9 for at least three years after hire or one year after the employee’s termination, whichever is later.
Mandatory use of updated Form I-9 (2026 requirement). Effective August 1, 2026, all Texas employers (like all U.S. employers) must use the latest I-9 form edition marked with the 05/31/2027 expiration date. This requirement was set by USCIS to replace the previous edition, which expired July 31, 2026; prior editions cannot be used for new hires as of that date. Employers should check the USCIS Forms Updates page for any further transition guidance in advance of the effective date. The underlying documentation and verification/retention rules have not changed.
Recent enforcement and compliance note. No new changes to ICE enforcement standards or substantive compliance obligations were published since the last update; the only material update is the form edition and its mandatory usage date.
Source: Form I‑9, Employment Eligibility Verification Source: USCIS Forms Updates — New Edition Requirement Source: 8 C.F.R. § 274a.2
E-Verify requirements for state agencies and sexually oriented businesses
Texas law requires E-Verify participation for two categories of employers: state agencies and sexually oriented businesses. E-Verify is the federal electronic verification of employment authorization program operated by the U.S. Department of Homeland Security under the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, used to verify the employment authorization status of newly hired employees.
State agencies. Texas Government Code § 673.002 requires every state agency to register and participate in the E-Verify program to verify information of all new employees. This requirement took effect September 1, 2015. "State agency" has the meaning assigned by Government Code § 659.101. The statute does not impose E-Verify participation on private employers, though state contractors are subject to separate E-Verify requirements under Executive Order RP-80 (2014) and subsequent legislation governing state procurement.
Sexually oriented businesses. Texas Labor Code § 51.016(c)(2) requires every sexually oriented business to register and participate in the E-Verify program to verify information of all employees and independent contractors. "Sexually oriented business" has the meaning assigned by Local Government Code § 243.002. The requirement applies to employees and independent contractors working at the premises of the business, but does not apply to independent contractors who contract with the business solely to perform repair, maintenance, or construction services. A person commits an offense if the person fails to register and participate in the E-Verify program as required. The E-Verify mandate for sexually oriented businesses was added effective May 24, 2021, and the minimum employment age for these businesses was simultaneously raised to 21 years.
No general private-employer mandate. Texas does not require private employers (other than sexually oriented businesses and state contractors) to use E-Verify. For information on recent legislative efforts—including SB 324 (2025) to expand E-Verify mandates to all private employers, which did not become law—see "E-Verify requirement — SB 324 failed to enact" below. As of July 2026, private employers may voluntarily enroll in E-Verify but are not compelled to do so under Texas law, subject to federal E-Verify requirements for federal contractors.
Source: Tex. Gov't Code § 673.001–.002 Source: Tex. Lab. Code § 51.016
Texas new-hire reporting requirement: deadline, content, method, and penalties
Who must report? Every Texas employer, including governmental entities and all private-sector employers, must report each newly-hired or rehired employee to the Texas Directory of New Hires. This is mandated for the purposes of child support enforcement and fraud prevention. A "new hire" includes any employee who has not previously been employed by the employer or who was previously employed but has been separated from employment for at least sixty (60) consecutive days.
Deadline for reporting Employers must report newly hired and rehired employees no later than twenty (20) calendar days after the employee’s first day of work for pay. If submitting reports electronically or magnetically, employers may submit two monthly transmissions (not less than 12 days nor more than 16 days apart). This matches the standard set by federal law for Texas. (1 Tex. Admin. Code § 55.303(c)(2); Tex. Fam. Code § 234.102(a)–(c); see also 42 U.S.C. § 653a for federal baseline.)
Information to report The employer must submit the following data:
- Employee's name, address, and Social Security number
- Date of hire (first day paid)
- Employer’s name, address, and Federal Employer Identification Number (FEIN)
Where and how to report Reports are submitted to the Texas Directory of New Hires. Employers may file electronically via the web, magnetically, or on paper (via mail or fax) as described by the Office of the Attorney General. Details are published in the Texas Administrative Code at 1 TAC § 55.303 and on the Texas OAG Child Support Division website. (For most employers, the web portal or secure file upload suffices.)
Penalties Employers who fail to report as required are subject to civil penalties: $25 for each failure or, if the failure is part of a conspiracy between the employer and employee to avoid child support, $500 per occurrence. (Tex. Fam. Code § 234.105)
Source: Tex. Fam. Code § 234.102 Source: 1 Tex. Admin. Code § 55.303 Source: Tex. Fam. Code § 234.105
Criminal background checks and fair chance hiring laws — no general restriction in Texas
Texas does not have a statewide "ban the box" or "fair chance hiring" law restricting private or public employers from inquiring about or using criminal history in the hiring process. Under Texas state law, employers may ask about an applicant's criminal record at any stage of the hiring process, including on the initial job application. There is no prohibition on making criminal background inquiries before a conditional offer, nor are there state-mandated waiting periods, individualized assessment requirements, or explicit restrictions on how criminal records can be used in hiring decisions.
Preemption of local ordinances (HB 2127). Several Texas municipalities—including Austin—previously enacted local fair chance hiring ordinances. However, as of September 1, 2023, the Texas Regulatory Consistency Act (HB 2127) preempts local regulation of employment practices, including any local "ban the box" or fair chance hiring laws. This means all conflicting city or county ordinances (e.g., Austin's Fair Chance Hiring ordinance) are nullified or unenforceable to the extent they go beyond state requirements. This action consolidated employment regulation at the state level, and no exceptions for criminal history inquiry policies remain in effect for private-sector hiring.
Employer discretion remains broad. While individual employers may voluntarily delay criminal history inquiries or adopt fair chance policies, these are not required by Texas law. All Texas employers, however, remain bound by applicable federal restrictions, such as the Fair Credit Reporting Act (for third-party background checks) and Title VII disparate impact considerations (as interpreted by the EEOC).
E-Verify requirement — SB 324 failed to enact; no current mandate for private employers
Texas does not require private employers to use the federal E-Verify system as of July 2026. Senate Bill 324 (89th Legislature, Regular Session, 2025) proposed to expand mandatory E-Verify participation to all private employers in the state. The bill passed the Texas Senate on April 30, 2025, but after its referral to the House State Affairs Committee on May 2, 2025, it did not advance and died in committee when the legislative session adjourned sine die on June 2, 2025. As a result, SB 324 did not become law, and the status quo remains: Texas private employers are not subject to an E-Verify mandate under state law.
Mandatory E-Verify participation in Texas still applies only to certain categories: state agencies (Texas Government Code § 673.002), state contractors (by Executive Order RP-80 and subsequent statutory provisions), and sexually oriented businesses (Texas Labor Code § 51.016(c)). For details on these current statutory mandates, see "E-Verify requirements for state agencies and sexually oriented businesses" above. Private employers may voluntarily enroll in E-Verify but, aside from these exceptions and requirements for certain federal contractors, there is no Texas law compelling private-sector use of the program.
For authoritative information on legislative actions and current law, consult the official Texas Legislature bill history and the Texas statutes for E-Verify in public employment.
Source: Texas Legislature Online, History of SB 324 (89R) Source: Tex. Gov't Code § 673.002 Source: Tex. Lab. Code § 51.016
Onboarding notices and postings required under federal law and Texas rules
Federal posting requirements — anti-discrimination and wage/hour laws Federal law requires employers to post notices regarding employee rights under Title VII, the ADA, GINA, and the PWFA in conspicuous locations accessible to applicants and employees. This obligation is found in 29 C.F.R. § 1601.30 (EEOC notices), and for wage/hour rights (such as the FLSA Minimum Wage Poster) in 29 C.F.R. § 516.4. For most new hires, posting—whether physical or, for remote-only workers, electronic—satisfies the requirement; there is no federal rule compelling direct written handouts to each new hire during onboarding. Requirements for translated or electronic postings are often referenced in agency guidance, but not codified in these regulations.
Texas workers’ compensation coverage notice — written delivery to new hires Texas is unusual in that it requires employers to give each new employee a written notice stating whether the employer maintains workers’ compensation insurance. This written notice must be provided at hiring, by or before completion of the I-9 or W-4. The statutory and regulatory standards come from Texas Labor Code § 406.005 and 28 Tex. Admin. Code § 110.101. The notice must include statutory language about insurance status and, if the employer is a non-subscriber, about the five-day right to retain common-law rights. If an employer gains or loses coverage, written notice to all employees must follow within 15 days. Failure to deliver the written notice at hiring is an administrative violation subject to penalty under 28 Tex. Admin. Code § 180.2.
No direct onboarding handouts required for UI, FLSA, minors, tipped employees, or health care staff Neither Texas law nor federal law requires employers to distribute unemployment insurance information, FLSA wage/hour rights, or special notices to newly hired minors, tipped employees, or health care workers as an onboarding packet. Posting the required DOL and TWC notices in the workplace covers the compliance baseline. If Texas enacts a new written handout mandate for these categories, it would appear in the Texas Labor Code, Texas Administrative Code, or official TWC guidance as of July 2026.
Summary
- Federal: posting of EEOC and DOL wage/hour notices is required, not new-hire handouts.
- Texas: written workers’ comp notice must be delivered to every new hire; penalty for omission at 28 Tex. Admin. Code § 180.2.
- No Texas onboarding packet is required for unemployment, FLSA, or categories like minors or tipped workers.
Source: 29 C.F.R. § 1601.30 Source: 29 C.F.R. § 516.4 Source: 28 Tex. Admin. Code § 110.101 Source: Texas Labor Code § 406.005 Source: 28 Tex. Admin. Code § 180.2