Thursday, January 24, 2013

2013 E-Verify State Legislation Update

The beginning of the year saw three additional states enacting mandatory participation in the Federal government’s E-Verify program for employers of a certain size.  As of January 1, 2013, the three states, North Carolina, Pennsylvania and Tennessee now require certain employers and/or public contractors and subcontractors to enroll in the E-Verify program to verify the work eligibility status of their employees.

North Carolina:  House Bill 36 requires counties, cities and employers to use the E-Verify program for work authorization of every newly hired employee and requires private employers to complete and maintain federal employment eligibility verification forms.  The initial phase of the legislation began on October 1, 2012, requiring private companies with five hundred or more employees to enroll in E-Verify.  As of January 1, 2013, employers with one hundred or more employees are now required to participate in E-Verify or are subject to a three-tiered violation system, starting with a signed sworn affidavit for the first violation and potentially leading to a $2,000 civil penalty fine for each employee the employer fails to authorize.

Pennsylvania:  Senate Bill 637, enacted on July 5, 2012, requires all public works contractors and subcontractors to participate in the E-Verify program.  The bill establishes a good faith immunity for employers following the program guidelines, but employers failing to comply with the legislation may potentially lose their license or permit for 180 days to one year if they receive a third violation.

Tennessee:  House Bill 1378, which began being phased in on January 1, 2012, prohibits an employer from knowingly hiring unauthorized workers as well as requiring all state and local government employers to enroll in E-Verify.  As of January 1, 2013, all employers who currently employ at least 6 employees are required to verify the work eligibility of every employee.  Furthermore, employers will have to maintain records for three years after the initial date of hire for each employee and for one year after an employee is terminated.

There are currently twenty states requiring a form of E-Verify participation by employers, contractors and subcontractors, stay informed by Contacting Us for more information on the state requirements for your company.

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