Employment Eligibility Verification Laws in Tennessee, Alabama, and North Carolina

Tennessee has passed its own employment eligibility verification law:  the Tennessee Lawful Employment Act was signed into law June 7, 2011 and requires employers to verify employment eligibility beginning in early 2012.

The new law requires employers in Tennessee to enroll in the federal E-Verify program prior to hiring an employee, in order to verify the work authorization status of the new employee and to maintain records results generated by the E-Verify program for each employee. The law, however, includes an amendment permitting employers to request and retain other specified documents – instead of using the E-verify program - from the employee before employment begins. The list of permissible documents includes, for example, a valid driver license or photo identification license, a birth certificate, or a certificate of citizenship or naturalization. The law also imposes this requirement with regard to an employer’s non-employees with whom it contracts for labor.

The Tennessee law provides that a violation of the law will result in civil penalties ranging from $500 to $2,500, depending on whether it is a first or subsequent violation.

Alabama has also passed the Beason-Hammon Alabama Taxpayer and Citizen Protection Act (HB 56), which  was signed into law on June 9, 2011. The new law becomes effective Sept. 1, 2011 and requires employers in Alabama to use the federal E-Verify system to confirm the work status of new workers. Businesses that knowingly employ an individual without work authorization could have their business licenses suspended or revoked.

The law requires employers to use E-Verify for all employees by April 1, 2012. However, certain contractors must begin using E-Verify beginning Sept. 1, 2011.

The North Carolina Legislature has recently passed a bill requiring private employers with more than 25 employees, all counties, and all cities to use the federal E-Verify program to verify the work authorization of newly hired employees. If signed by the Governor, the bill would require participation in E-Verify between late 2011 and 2013, depending on the employer: counties and cities would have to participate in E-Verify by Oct. 1, 2011, private sector employees with 500 or more employees by Oct. 1, 2012, employers with 100 or more employees,by Jan. 1, 2013, and employers with 25 or more employees, by July 1, 2013.

Employers in Tennessee and Alabama are advised to review their policies in order to comply with the new laws, and employers in North Carolina should be ready to comply in the event the pending bill becomes law. Employers in the rest of the country should be watchful for signs of new bills and/or laws in their states as the trend towards adopting E-Verify programs appears to be gaining momentum.