Under a new California law that took effect on January 1, 2016, California employers may face civil penalties of up to $10,000 for misusing E-Verify, the federal electronic employment verification system some employers use to verify employment eligibility of newly hired employees. The new E-Verify law makes it more difficult for some California employers to comply with both federal and state laws relating to workers’ employment eligibility. California’s new E-Verify law is primarily aimed at employers who choose to use E-Verify without being required to do so under federal law or as a condition of receiving federal funds. Given that each unlawful use of the E-Verify system constitutes a separate violation for purposes of the new law’s penalty provision, an employer with non-compliant practices could quickly accrue significant penalties. Accordingly, California employers who use the E-Verify system should review their practices to ensure compliance.