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No, E-Verify does not replace the legal requirement to complete and retain Form I-9.
As noted above, the Form I-9 is used to verify the identity and employment authorization of individuals hired to work in the U.S. Federal law requires employers to only hire individuals who are legally permitted to work in the U.S., including: U.S. citizens. Non-citizen nationals.
Use Form I-9 to verify the identity and employment authorization of individuals hired for employment in the United States. All U.S. employers must properly complete Form I-9 for every individual they hire for employment in the United States. This includes citizens and noncitizens.
I-9 is a mandatory paperwork to be completed. Background check is optional. I-9 can be verified before 3 business days from the start date.
Then, in July of 2023, DHS announced substantial changes to the I-9 form, along with a final rule: Qualified E-Verify users in good standing (more on what that means below) can now verify employees eligibility documents remotely through live video interaction.

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Officials from the Department of Homeland Security, employees from the Immigrant and Employee Rights Section (IER) at the Department of Justice, and employees from the Department of Labor may inspect an employers Form I-9, Employment Eligibility Verification.
An I-9 form is not a background check. Many employers conduct pre-employment background screenings to verify a candidates prior employment, education, references, criminal history, or driving record. This is different from employment eligibility verification.
Background checks can be run as part of a hiring or onboarding process, as permitted by law, as well as throughout the term of employment. E-Verify is only run once after an offer of employment has been made and accepted, but no later than the third business day after the employee starts work for pay.

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