A law enacted by the North Carolina General Assembly in 2011 that requires businesses in the state with 25 or more employees to use the federal E-Verify electronic employment eligibility verification program to verify the work authorization of newly hired employees will continue to be phased in over the next year, and employers with 500 or more employees will be required to use E-Verify beginning October 1, 2012. The full text of House Bill 36 (H.B. 36) “An Act To Require Counties, Cities, And Employers To Use The Federal E-Verify Program To Verify The Work Authorization Of Newly Hired Employees” is available at: http://www.ncga.state.nc.us/Sessions/2011/Bills/House/PDF/H36v7.pdf. H.B. 36 contains a requirement that employers use E-Verify, a free internet-based system operated by the Department of Homeland Security (DHS) and the Social Security Administration (SSA) that allows participating employers to verify the employment eligibility of new employees hired to work in the United States. The law also contains a new system for reporting complaints regarding violations and penalties for non-compliance. H.B. 36 will be phased in according to the following schedule:
- October 1, 2012, for employers that employ 500 or more employees.
- January 1, 2013, for employers that employ 100 or more but less than 500 employees.
- July 1, 2013, for employers that employ 25 or more but less than 100 employees.
- The first violation will result in a civil penalty of $10,000.
- The second violation will result in a civil penalty of $1,000, regardless of the number of required employee verifications the employer has failed to make.
- The third or subsequent violation will result in a civil penalty of $2,000 for each required employee verification that the employer has failed to make.