“Since 2008, no fewer than 14 cities and counties in California have passed local ordinances or laws that require employers use E-verify under a variety of circumstances. All such local ordinances are effectively invalidated by the new law that amends California’s Labor Code.”
To avoid crushing costs to businesses in the state – estimated at $2.7 billion, $2.6 billion of which would be borne by small businesses – California has enacted “The Employment Acceleration Act of 2011” prohibiting state and local governments from passing laws that require employers to use an electronic employment verification system, including the Federal E-Verify program.
What you need to know about California’s new law:
- The law only prohibits state, county, city, and district governments from requiring the use of E-Verify. Other employers are still free to use the program if they choose to do so.
- The law also blocks state and local government entities from requiring employer use of E-Verify:
• as a condition of receiving a government contract,
• as a condition of applying for or maintaining a business license, or
• as a penalty for violation of other laws.
- Employers still must comply with federal Employment Eligibility Verification (Form I-9) rules and regulations.
- Employers that are required to use E-Verify by federal law or as a condition of receiving federal funds will remain subject to those requirements.