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Illegal Immigration and Your Business: Are you ready to E-Verify your potential employees?

Under a new state law that became effective July 1, employers may be required to use an online software program, E-Verify, to screen employees in order to qualify for government contracts or grants. Under this law, SEA 590, failing to maintain a legal workforce could now come at a cost to many Hoosier businesses.  

E-Verify overview

E-Verify is a free online tool operated by the Department of Homeland Security (DHS) and the Social Security Administration (SSA) where employers can determine if the prospective employee is eligible to work in the U.S. An employer enters data from a prospective employee’s I-9, and the system checks the information against DHS and SSA records, including visa information, immigration status and passport information. If E-Verify finds no inconsistencies in the information entered, the prospective employee is presumptively eligible to work in the U.S. If E-Verify finds an inconsistency, it sends notice to the employer of the inconsistency, who must then allow the prospective employee to contest the result before a final determination of employee eligibility is made.

E-Verify requirements under Indiana law

Under the new law, Indiana businesses may not enter into or renew a contract with a state agency or political subdivision to provide public services unless the contractor participates in the E-Verify program and certifies that it does not knowingly employ an unauthorized alien. If a state agency or political subdivision makes a grant of larger than $1,000, the recipient of the grant must certify that it uses E-Verify and that it does not knowingly employ an unauthorized alien. If a contractor knowingly employs or contracts with an unauthorized alien, the contractor has 30 days to remedy the violation or face termination of its contract. If a contractor utilizes a subcontractor, the subcontractor must certify to the contractor that it uses E-Verify and that it does not knowingly employ or contract with an unauthorized alien, or face termination of its subcontract.

Consequences for non-compliance with the new state law

Businesses that do not comply with this new law may face significant tax consequences as well as potential civil liability. For more on how E-Verify may impact your business, please contact one the Corporate and Transactional Practice Group at Bingham Greenebaum Doll.

Learn more at the Bingham Greenebaum Doll Legislative Conference

Immigration and E-Verify issues will be among the topics covered at the 2011 Bingham McHale Legislative Conference. For more information and to register, visit the conference web site, https://www.bgdlegcon.com/

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