eTrends - E-Verify Law Signed By Governor Perdue

On June 23, 2011, Governor Beverly Perdue signed into law the bill entitled, "An Act To Require Counties, Cities, And Employers To Use The Federal E-Verify Program To Verify The Work Authorization Of Newly Hired Employees." This new law extends the requirement to use the federal E-Verify program to private employers that employ 25 or more employees and all city and county employers in North Carolina. Employers with seasonal temporary employees who work 90 or fewer days in a consecutive 12-month period are excluded from the requirements of the law.

The new law takes effect for employers in stages based on the employer's size and type. Municipalities and counties must be in compliance by October 1, 2011. Employers that employ 500 or more employees must be in compliance by October 1, 2012; employers that employ 100 or more employees must be in compliance by January 1, 2013; and, employers that employ 25 or more employees must be in compliance by July 1, 2013. For purposes of the new law, "Employee" is defined as "any individual who provides services or labor for an employer in this State for wages or other remuneration," and "Employer" is defined as "any person, business entity, or other organization that transacts business in this State and that employs 25 or more employees in this State."

E-Verify is a federal, internet-based employment verification system administered by the United States Department of Homeland Security. An employer enters into the E-Verify program the information reported by a new hire on the Form 1-9, Employment Eligibility Verification, to determine the employee's eligibility to work in the United States. The E-Verify record of verification of the employee's work authorization must be retained by the employer for the duration of an employee's employment and for one year following the end of such employment.

Failure to comply with North Carolina's new employment verification law may be costly for employers. A non-compliant employer's failure to file a sworn affidavit of compliance after the North Carolina Commissioner of Labor orders the employer to do so subjects the employer to a $10,000 fine and the employer may be subject to additional civil penalties for subsequent violations.

Please contact Kim Korando with any questions.

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Smith Anderson publishes eTrends periodically as a service to clients and friends. The purpose of this eTrends is to provide general information about a significant legal development in the field of employment law. Readers should be aware that the facts may vary from one situation to another, so the conclusions stated herein may not be applicable to the reader’s particular circumstances.

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