E-Verify is an Internet-based system that allows an employer, using information reported on an employee’s Form I-9, Employment Eligibility Verification, to determine the eligibility of that employee to work in the United States. For most employers, the use of E-Verify is voluntary and limited to determining the employment eligibility of new hires only. There is no charge to employers to use E-Verify. The E-Verify system is operated by the Department of Homeland Security in partnership with the Social Security Administration. The United States Supreme Court recently ruled that states may require businesses to use the federal E-Verify program. The court’s ruling also permits states to penalize businesses that hire undocumented workers. States may impose conditions on a business’s ability to obtain and keep a business license, including suspending or revoking a business license. Arizona enacted a law that gave the state the power to decide whether to suspend or revoke the licenses of Arizona employers that knowingly or intentionally employ workers not authorized to work in the United States. The law also created circumstances under which the state must suspend or revoke such employers’ business licenses. The Arizona law further required Arizona employers to use E-Verify. A lawsuit challenged the state law on the grounds that federal immigration laws pre-empted Arizona’s law and that the federal E-Verify program is voluntary and Arizona had no right to mandate its use. The U.S. Supreme Court disagreed with these challenges in a 5-3 decision (with one justice not participating), and concluded that the law was legal. Chamber of Commerce v. Whiting, No. 09-115 (2011) As of the end of December 2010, more than 238,000 employers are enrolled in the program, with over 16 million queries run through the system in fiscal year 2010. There have been over 3 million cases run through the system in fiscal year 2011. Although E-Verify is still voluntary for most employers, it has been mandatory since 2009 for certain employers, such as those employers with federal contracts or subcontracts that contain the Federal Acquisition Regulation (FAR) E-Verify clause and employers in certain states.