With a lack of comprehensive immigration reform on the federal level, states' efforts to punish contractors who hire undocumented workers vary in substance and intensity.
Contractors can be between a rock and hard place when it comes to the federal and state laws regulating the work status of foreign nationals. Employers are technically accountable to federal agencies--the Internal Revenue Service, the Social Security Administration, and more recently the Department of Homeland Security--for supplying or confirming employment data. However, the burden of authenticating workers is steadily shifting to employers without a proficient process through which they can be expected to “verify” workers in a timely and efficient manner.
The research arm of the U.S. Congress, the General Accountability Office, recently documented significant gaps and delays in confirming employment data from and among federal agencies. This problem is compounded by state laws that threaten further penalties on employers who do not “verify” workers. Therefore, contractors need to become familiar with state laws affecting them.
HB 56
Under the recently passed immigration law in Alabama, employers face potential loss of business licenses due to hiring unauthorized workers as well as requiring the all employers to E-Verify their new hires.
Executive Order
Florida passed an executive order that requires state agencies and companies to use E-Verify.
HB 87
Georgia passed immigration law that requires businesses with 10 or more employees to use E-Verify. This law also mandates businesses to use E-verify before they can get a business license or renewal.
HB 342
Immigration law passed in Louisiana mandates all public contractors and subcontractors to use E-Verify. Contractors that do not use E-Verify may be barred from contract work up to three years. If you are a contractor and your work is cancelled due to not using E-Verify, you will pay additional costs the government incurred.
HB 36
The recently passed immigration law in North Carolina requires employers with more than 24 employees to use E-Verify.
HB 1378
Tennessee recently passed legislation that requires employers with 6 or more employees to use E-Verify and keep all records. It can also suspend your business license on the first offense of knowingly hired unauthorized workers.
HB 116
Immigration law passed in Utah creates a guest worker program for unauthorized workers living in Utah.
HB 1859
Virigina passed law that public contractors with 50 or more employees must use E-Verify or be debarred from work for 1 year.
- Immigration Works USA
In addition to federal initiatives, ABC will continue to monitor state legislatures for bills related to immigration reform and contractor liability. Please email ABC Government Affairs at
gainfo@abc.org with any questions.