HB 4061 — Public Contract and Employment Eligibility Verification Act (summary)
Status & timing
- Introduced in early 2025 (electronic reproduction 02/04/2025; filed in the House in Feb–Mar 2025).
- Bill would take effect 90 days after enactment.
- Department of Labor and Economic Opportunity (or equivalent agency) must adopt rules to implement the Act.
Purpose
- To require public employers and state/local government contractors and subcontractors to verify that employees performing work on public contracts are legally authorized to work in the United States, primarily by using the federal E‑Verify system (or an equivalent federal program).
Key definitions (selected)
- E‑Verify: the federal Electronic Verification of Work Authorization program under 8 U.S.C. §1324a (or an equivalent federal work‑authorization program).
- Employer: a person who employs for compensation 10 or more individuals at one time during a calendar year.
- Public employer: a state department, agency, instrumentality, or political subdivision.
- Subcontractor: includes subcontractors, contract employees, staffing agencies, and similar entities.
- Form I‑9: the federal employment eligibility verification form (8 C.F.R. §274a.2).
Major provisions
- Public employers must register for and participate in E‑Verify to verify documentation of all new employees.
- No public employer may enter into a services contract in the state with a contractor that fails to register and participate in E‑Verify. Likewise, contractors/subcontractors must be registered participants in E‑Verify to contract or subcontract on public contracts.
- Employers must obtain a Form I‑9 for new hires. For independent contractors, an affidavit signed under penalty of perjury by the contractor and its new employees may be used; in all cases the employer must also verify status through E‑Verify. The Form I‑9 or affidavit is presumed proof of lawful presence until E‑Verify returns a final result.
Sanctions and penalties
- Criminal: an individual who knowingly and willfully makes false statements on an I‑9 or affidavit is subject to criminal prosecution under state perjury law (the bill references the state perjury statute).
- Civil: individuals who willfully and repeatedly violate the Act may be responsible for a state civil infraction with fines of $100–$1,000 per violation (applies to individuals).
- Contract sanctions: an employer that violates the registration/participation requirement is ineligible to contract with any public body for one year after a final determination. A public employer must immediately terminate for default any public contract or subcontract of a subcontractor found to have employed two or more unauthorized aliens during the violation period. An employer that has complied with requirements and cooperated in an investigation is not subject to sanctions for subcontractor violations.
Who is affected
- Public sector employers and all contractors/subcontractors (including staffing agencies) seeking to perform services on state or local public contracts.
- Private employers with 10+ employees that contract with public employers (they must register for and use E‑Verify for new hires on those contracts).
- Independent contractors performing on public contracts (subject to affidavit and verification requirements).
Implementation & fiscal considerations
- E‑Verify is provided free by the federal government; direct program costs are minimal. However, agencies and contractors may incur administrative costs (training, record changes, contract negotiations, reprocurement if vendors are ineligible).
- The bill directs the state agency to promulgate implementing rules. The effective date is 90 days after enactment, giving a short window for compliance preparations.
Practical impacts
- Seeks to make public contracting contingent on federal employment‑eligibility verification, potentially reducing unauthorized workers on public projects.
- May increase administrative burden for public employers and vendors (registration, recordkeeping, use of E‑Verify).
- Could affect vendor pools for public contracts where some providers do not or cannot use E‑Verify.
