A bill seeking to expand the mandatory use of the federal employment verification system E-Verify advanced Tuesday in a Legislature committee, but with modifications that would limit its impact, especially for small businesses.
The new version of HB 1214 passed by House Judiciary Committee 2 no longer requires employers with five or more workers to use E-Verify. Instead, maintains the threshold of 25 or more employees set by current state law.
The change especially benefits small businesses and businesses that are not currently required to use E-Verify to verify their workers’ employment authorization.
However, the new version of HB 1214 maintains the extension of mandatory use of the federal system for government entities such as state agencies, universities, community colleges, counties, municipalities, and school systems that are currently excluded under state law.
HB 1214 also creates a 30-day cure period for employers who are notified for the first time by the Department of Labor to begin using E-Verify, and increases penalties for repeat offenders.
Furthermore, it protects employers who comply “in good faith” with E-Verify from potential penalties if an employee is found to have submitted fraudulent documentation to obtain their job.
The new version of HB 1214 maintains oversight measures by the Commissioner of Labor, authorizing it to conduct random inspections to verify compliance by employers.
It also provides a recurring fund of $448,195 to allow the Department of Labor to hire five full time employees to perform oversight and law enforcement tasks.
During the debate in Judiciary Committee 2, Democratic Rep. Deb Butler (New Hanover) objected to the legislation, arguing that it will create unnecessary costs and a bureaucratic burden that could delay hiring new employees.
“Businesses are going to be subject to random audits, and I just feel like that’s going to maybe have a chilling effect on hiring, and also causing delays,” said Butler, who voted against the bill.
Kevin Wilkinson of the Carolinas Association of Builders and Contractors told the committee that his organization supports the new version of the bill, after resolving its initial concerns along with the North Carolina Department of Labor.
After passing Judiciary Committee 2, HB 1214 will be discussed by the Committee on Agriculture and Environment.
