USCIS has decided that the new US Passport Card may be used for I-9 verification purposes.

The new card provides a less expensive and more portable alternative to the passport book and expedites document processing at US land and sea ports-or entry for US citizens traveling to Canada, Mexico, the Caribbean and Bermuda; however, it is limited in its usage for international air travel.  Thus, it can be used for I-9 processing and also for employers participating in the
E-Verify Program.

It will be considered a “List A” document that can be presented by newly hired employees.

For more information on the new Passport Cards:
Read this article from USCIS