Mandatory Employer Electronic Verify Participation

Current law requires employers in Colorado to examine the legal work status of newly hired employees, within 20 days after hiring, using paper-based forms of identification. The bill will instead require all employers, upon hiring a new employee on or after January 1, 2017, to participate in the federal electronic verification program (e-verify program) to determine the work eligibility status of newly hired employees. Employers must retain a written or electronic copy of the employment eligibility information received through the e-verify program regarding each newly hired employee, and the director of the division of labor (director) in the department of labor and employment (department) may review employers' documentation and conduct random audits of employers to ensure compliance.

An employer is subject to a fine of up to $5,000 for a first offense and up to $25,000 for a second offense if the employer knowingly:

• Fails to submit the required documentation to the director;
• Submits false or fraudulent documentation; or
• Fails to participate in the e-verify program.

For a subsequent offense, the employer is subject to a fine of up to $25,000 and suspension of all the employer's business licenses for up to 6 months.

The bill also requires the department, as part of its quarterly electronic publication to all employers in the state, to notify employers of the requirements of the bill and to include a link to its website, on which a permanent notice must be posted detailing the requirements of the bill and instructions for enrolling in the e-verify program. The secretary of state's website must also include information regarding the requirements of the bill and the penalties for noncompliance.

The bill takes effect January 1, 2017.

(Note: This summary applies to this bill as introduced.)