Bill Would Force Employers with Five or More Workers to Use E-Verify in NC

A bill would drastically expand the mandatory use of the federal E-Verify system to verify employees’ legal work authorization in North Carolina. 

HB1214, introduced by one of the House majority leaders, Republican Rep. Karl Gillespie (District 120), would require private companies or businesses with 5 or more employees to use E-Verify to verify their employee’s work authorization. Currently, only employers with 25 or more workers are obliged to do so. 

In addition, HB124 extends the use of E-Verify to local government entities such as state agencies, counties, and municipalities that were previously excluded or governed by other rules. 

HB1214 also creates a 30-day cure period for employers who are notified for the first time by the Department of Labor to comply and start using E-Verify. It also establishes new fines ranging from $1,000 to $25,000 for those who don’t comply with the cure period.    

Another provision protects employers who “in good faith” comply with E-Verify from penalties if an employee is found to have submitted fraudulent documentation to obtain their employment. 

The bill also increases oversight by the Labor Commissioner, who could conduct random or risk-based inspections to determine whether employers are complying with the use of E-Verify.  

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 enforce this act. 

HB1214 passed its first reading in the House of Representatives on Tuesday, May 5, and was sent to the Judiciary 2 Committee.