Employers Impacted

All private contractors who want to do business with a state or local public entity must use E-Verify.

All private employers must either use E-Verify or retain copies of certain identity and work authorization documents.

Penalties for Non-Compliance

Private contractors may be subject to cancellation of the public contract and may be ineligible for public contracts for up to 3 years from the violation date. The private contractor will be liable for additional costs incurred by a public entity resulting from the cancellation of a contract or loss of any license permit.

Private employers who do not verify the citizenship of their employees will be subject to civil penalties as follows:

First-time violators face a civil penalty of up to $500 for each unauthorized worker.

Second-time violators face a civil penalty of not more than $1,000 for each unauthorized worker.

Third-time violators (or subsequent violators) will face penalties including a suspended permit or business license for at least 30 days and up to 6 months, a fine up to $2,500 for each unauthorized worker.