Requires employers to register for E-verify program for verification of employment eligibility; establishes a tax credit for employers with less than fifty employees

BILL NUMBER:A10720

Title of bill

An act to amend the labor law, in relation to requiring public and private employers to register for and participate in the E-verify program for verification of employment eligibility; and to amend the tax law, in relation to establishing a tax credit for employ- ers with less than fifty employees that register for the E-verify program by a certain time

Purpose or general idea of bill

Requires that all employers, public and private, use the E-Verify Program for verification of employment eligi- bility; and provides tax credit for small employers who register for the program before they are required to do so.

Summary of specific provisions

This bill adds a new §219-b to the Labor Law to require that every employer in New York State register for and participate in the federal E-Verify Program for verification of employment eligibility of all new hires. The requirement would be phased-in, starting with the largest employers, as follows:

* July 1, 2011, all employers with 100 or more employees

* January 1, 2012, all employers with 50 or more employees

* January 1, 2013, all employers with 25 or more employees

* January I, 2014, all employers shall be required to register for the E-Verify Program.

The Commissioner of Labor shall promulgate rules and regulations and is responsible for enforcement of the provision. Upon a finding of a will- ful or intentional failure to register for or participate in the program, the Commissioner may impose a civil penalty of up to $1,000 for the first violation and up to $2,000 for the second violation. In the event of a third violation, the employer shall he subject to the cancel- lation of any state or public contract, debarment from future contracts for a period of up to five years and the loss of any license, permit, certificate or other document granted for the right to do business in New York for up to one year.

The bill also adds a new subdivision 22-a to §210 of the Tax Law to provide a $250 tax credit to employers with fewer than 50 employees who register for the E-Verify Program between January 1, 2011 and December 31, 2011.

Justification

The E-Verify Program was established by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 ("IIRIRA") (P.L. 104-208), signed September 30, 1996 (8 U.S.C. §1324a). The Program was initially started for use in just 5 states, but expanded to cover all fifty states in 2003. The Program allows employers to obtain elec- tronic verification as to a new employee's employment eligibility following completion of the 1-9 form. In a manner of speaking, it acts

as a double-check that the new hire is in fact authorized for employ- ment. While it may not eliminate all eases of document-fraud, it will substantially reduce the number of eases of unauthorized employment in this State.

The mandatory use of the program will not only serve to reduce unauthor- ized employment, but according to The Findings of the E-Verify Program Evaluation (Westat 2008), it also reduces discrimination against foreign-born workers in the hiring process.

To lessen the impact on small business, the mandatory use of the program will be phased in over a period of two-and-a-half years. In addition, to encourage early adoption of the program, a tax incentive is offered to employers with fewer than 50 employees who adopt use of the program early.

Prior legislative history

New bill.

Fiscal implications

Undetermined.

Effective date

This act shall take effect immediately.