California Bill Would Prohibit Mandatory E-Verify

On September 6, 2011, the California State Senate passed Assembly Bill 1236 (AB 1236), the Employment Acceleration Act of 2011, which now heads to Governor Jerry Brown. The Act
prohibits the state, counties, cities and special districts from mandating that employers use an electronic employment verification program (such as E-Verify), except when required by federal law or as a condition of receiving federal funds. The Act’s prohibition on mandating use of an electronic employment verification program specifically applies in the following circumstances:

  • as a condition of receiving a California government contract;
  • as a condition of applying for or maintaining a business license; or
  • as a penalty for violating licensing or other similar laws.

The findings and declarations set forth in AB 1236 include, among others:

  • E-Verify’s inaccuracies have prevented employers from hiring employees “in a timely manner;”
  • had E-Verify been mandatory in 2010 it would have cost employers $2.7 billion; and
  • the net societal cost of all federal contractors using E-Verify would be $10 billion per year, according to a U.S. Chamber of Commerce estimate.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.