Impact of a U.S. Federal Government Shutdown on E-Verify: February 16 2026

Why It Matters

E‑Verify downtime threatens hiring compliance and can stall onboarding pipelines, impacting productivity and legal risk for businesses reliant on automated verification.

Key Takeaways

• E‑Verify service may be temporarily offline
• SuccessFactors onboarding cannot verify new hires
• Companies risk compliance violations without verification
• SAP recommends contingency plans for shutdowns
• Alternative manual verification processes may be required

Pulse Analysis

Federal shutdowns, though rare, have ripple effects beyond government agencies, reaching private‑sector HR operations that depend on public services. E‑Verify, the Department of Homeland Security’s electronic employment eligibility system, is a cornerstone for many organizations to meet I‑9 compliance. When the government halts operations, the API endpoints that SuccessFactors and other HR platforms use can become inaccessible, forcing firms to pause automated checks and potentially delay onboarding new talent.

For enterprises using SAP SuccessFactors, the loss of real‑time verification translates into a compliance bottleneck. Without E‑Verify, HR teams must resort to manual I‑9 documentation, increasing administrative overhead and the risk of errors. Companies with high‑volume hiring cycles—such as retail, hospitality, and seasonal workforces—are especially vulnerable, as any delay can affect staffing levels and revenue. Proactive strategies include maintaining a backup verification workflow, training staff on manual processes, and monitoring government communications for shutdown timelines.

Looking ahead, businesses should embed shutdown resilience into their HR tech roadmaps. This means establishing service‑level agreements with vendors that outline alternative verification methods, leveraging third‑party compliance tools, and regularly testing contingency plans. By treating E‑Verify availability as a critical dependency, organizations can safeguard hiring continuity, reduce legal exposure, and maintain operational agility even when federal services are temporarily suspended.