New California Law Authorizes Hefty Fines for Improper Use of E-Verify

On October 9th 2015, California Governor Jerry Brown approved Assembly Bill No. 622 (AB 622). AB 622 is intended to prevent employment discrimination effected through improper use of the federal E-Verify system – the mostly voluntary online program allowing registered employers to check the employment authorization of new employees. AB 622 does not mandate or disallow the use of E-Verify; instead, it authorizes state fines for its misuse.

The E-Verify system allows employers to check the work authorization of new hires. However, it cannot be used to verify status of individuals who were not extended an offer of employment, or have not accepted the job offer, except as required by federal law. Furthermore, E-Verify cannot be used to verify employment eligibility of an existing employee, except in limited circumstances involving federal contracts.

When using the E-Verify system, an employer may receive a notice that the employee’s information does not match the Social Security Administration or the United States Department of Homeland Security records. Upon receiving the so called “tentative non-confirmation” notice, the employer must furnish it the employee as soon as practicable.

According to AB 622, each improper use of E-Verify or each failure to inform an employee or applicant of a tentative non-confirmation notice is considered a separate violation. California employers are liable for a civil penalty not exceeding $10,000 for each violation, in addition to any federal liability.

How Can We Help

AB 622 does not change employment verification obligations of California employers. However, the bill imposes financial sanctions for violation of the terms of the federal E-Verify system. Proper training of staff responsible for conducting employment verification is paramount in avoiding liability under the new California law, as well as the existing federal E-Verify regulations.

The Capitol Immigration Law Group can provide various levels of internal compliance audits and on-site HR training, as well as training materials and guidance for performing regular audits and training, meeting an employer’s specific needs. We encourage all employers to be mindful of their compliance requirements and to proactively and regularly audit their compliance before a government agency does. We invite you to subscribe to our free weekly immigration newsletter to receive timely updates on this and related topics. Please do not hesitate to contact us if our office can be of any assistance or you have any questions or comments.