CAWP Legislative News 6-10

Vote Expected Soon on Requiring Contractors to Verify Employment Eligibility

The Pennsylvania House will be voting soon on two bills targeting contractors that hire undocumented workers. Both bills were reported out of the House Appropriations Committee April 19.

Under the Construction Industry Employment Verification Act (H.B. 1503), construction industry employers would have 60 days after the effective date to verify the employment eligibility of all current employees using the Social Security Administration’s Social Security Number Verification Service (NVS).

New hires would have to be checked out using the Department of Homeland Security’s E-Verify Program within three days after they begin work.

The other bill (H.B. 1502) would apply the same employment eligibility verification requirements to employers in any industry as a precondition for the award of a public works contract.

Construction contractors would have to submit a statement to the Pennsylvania Revenue Department each year along with their state income tax returns certifying that they have complied with the verification requirements.

Public works contracts would have to submit a statement of compliance before being awarded a contract.

A construction contractor that hires a worker without verifying his or her Social Security number could be required to forfeit the state-issued licenses or certifications it needs to do business in Pennsylvania, under the legislation.

On public works projects, penalties include debarment for up to 90 days for a second violation and up to three years for subsequent violations, as well as possible termination of the contract by the state agency that awarded it.

Willful violations would result in debarment of a public works contractor or subcontractor for three years and possible termination of the public works contract or subcontract.

The state Labor Department would conduct complaint-based and random audits of Pennsylvania employers using the NVS and E-Verify Program to verify worker Social Security numbers.

Source: BNA Construction Labor Report – April 22, 2010