New Jersey and Pennsylvania Consider Stricter Employment Verification Requirements

Proposed legislation in Pennsylvania and New Jersey would impose stricter work authorization verification requirements on employers.

Pennsylvania

State Flag of PennsylvaniaHouse Bill 1502 would require all contractors and subcontractors on public works projects to verify the employment eligibility of new employees through E-Verify, the federal electronic employment verification system, and to verify existing employees’ Social Security numbers. In June 2010, this bill was referred to the House State Government Committee.

House Bill 1503 would require all construction industry employers to verify the employment eligibility of new employees through E-Verify and to verify existing employees’ Social Security numbers. This bill was passed by the House in June 2010 and is currently in the Senate Labor and Industry Committee.

Employers that in good faith rely on federal programs (E-Verify and the Social Security Number Verification Service) to verify new employees’ legal work status and existing employees’ Social Security numbers will be immune from sanctions. However, employers face debarment from public work contracts (HB 1502) or license forfeiture (HB 1503) for noncompliance. Additionally, employers could face civil liability for retaliating against employees who complain about alleged violations or participate in investigations, hearing or inquiries concerning alleged violations.

New Jersey

State Flag of New JerseyNew Jersey has also introduced two bills, Senate Bill 1842 and Assembly Bill 2600, which would prohibit the employment of unauthorized workers and require all employers who employ 100 or more employees to verify the employment eligibility of all new employees through E-Verify beginning January 1, 2011; compliance for smaller employers would begin on January 1, 2012.

In New Jersey, a rebuttable presumption that an employer did not intentionally or knowingly employ an unauthorized alien will exist if E-Verify was used for verification purposes. Violations can result in sanctions ranging from $100 to $1,000 and suspension and/or revocation of business licenses, depending on the severity of the offense. The New Jersey legislation, unlike the Pennsylvania bills, contains no retaliation provisions.

S1842 was introduced in May 2010 and referred to the Senate Labor Committee. A2600, also introduced in May 2010, was referred to the Assembly Labor Committee.

Employer Audits

The New Jersey and the Pennsylvania proposals also contain enforcement mechanisms. Under the proposed measures, the Pennsylvania and New Jersey labor departments would conduct employer audits and investigate complaint-based allegations to ensure employer compliance. Given the current climate surrounding immigration, it is not surprising that both states have included audits as an enforcement tool. As we previously discussed on this blog, the centerpiece of the Obama administration’s immigration enforcement strategy is the employer audit and, thus far, federal agencies have doled out considerable fines for non-complying employers.

South Carolina Company Enters First IMAGE Agreement in State

Coastal Steel and Acoustics became the first company in South Carolina to sign an IMAGE agreement (Immigration and Customs Enforcement Mutual Agreement between Government and Employers), the agency announced. By signing the agreement, the company:

  • will receive agency-provided training and education on fraudulent document detection, as well as on proper hiring and anti-discrimination procedures;
  • can use E-Verify, the federal electronic employee verification system, and the Social Security Number Verification Service; and
  • can become “IMAGE certified” by following the Department of Homeland Security’s Best Employment Practices.

IMAGE was initiated in 2007 to combat unlawful employment and reduce vulnerabilities that help illegal immigrants gain employment in the United States.

Senators Unveil "Blueprint" for Comprehensive Immigration Reform

Last Thursday, Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) released a framework for comprehensive immigration reform. Although a bill has yet to be introduced, the Senators outlined their “four pillar” reform strategy in a Washington Post opinion column. This plan would include “requiring biometric Social Security cards to ensure that illegal workers cannot get jobs; fulfilling and strengthening our commitments on border security and interior enforcement; creating a process for admitting temporary workers; and implementing a tough but fair path to legalization for those already here.” For more information on this development, please continue reading at Littler's Washington D.C. Employment Law Update blog.

Senator Schumer Wants to Replace E-Verify with Biometric Identity Cards

Senator Charles Schumer (D-NY), chairman of the Senate Judiciary subcommittee on immigration, has strongly criticized the E-Verify system and proposes replacing it with a biometric-based federal employment verification system. As reported by Workforce Management, Schumer has called E-Verify “unfair” because it singles out individuals with Hispanic surnames and “ineffective” because unauthorized workers can slip through the system by using stolen Social Security numbers and fake IDs.

However, it is far from certain that Schumer’s plan to scrap E-Verify will succeed. The House recently approved a homeland security appropriations bill that includes a two-year reauthorization of E-Verify, and it also has approved redirecting $50 million of the DHS budget to the U.S. Customs and Immigration Services for E-Verify enhancements.

New Employee Verification Act Introduced; Proposes Alternative to E-Verify

Representatives Gabrielle Giffords (D-AZ) and Sam Johnson (R-TX) have introduced a bill that would establish a mandatory electronic verification system to take the place of E-Verify. As reported at Workforce.com, Giffords and Johnson hope their bill, the New Employee Verification Act, will either be the foundation for employment verification in a broader immigration bill or move through Congress on its own.

The proposed legislation would:

  • Require all employers to use either the Electronic Employment Verification System (based on the new-hire system used to enforce child support payments) or the Secure Electronic Employment Verification System (which would authenticate an employee’s identity using biometric information). Data for recently hired employees would be checked against Social Security and Department of Homeland Security databases to determine work eligibility.
  • Eliminate the I-9 immigration form.
  • Establish civil and criminal penalties for employers that knowingly hire illegal immigrants.
  • Establish federal preemption of state laws on employment verification.
  • Require that the Social Security database, which has a 4.1% error rate, be cleaned up before the new system takes effect.

Giffords and Johnson have collaborated on the legislation with The HR Initiative for a Legal Workforce, which is led by the Society for Human Resource Management.

Arkansas May Require Verification of Employee Social Security Numbers

The Arkansas Democrat Gazette reports that Arkansas state representative Bill Sample plans to introduce a bill requiring, in part, verification of Social Security numbers prior to the issuance of employee identification cards. Rep. Sample made the following comments about the bill:

It will establish proper guidelines for the issuance of identification cards and documents. ... We're trying to define who can give out identification cards and what those ID cards would state. We don't want those phony ID cards to go out. ... If you give them an ID card, you're responsible to do a little due diligence and make sure that person is in the state legally.