I 

113TH CONGRESS 

1ST SESSION H. R. 502 

To create an electronic employment eligibility verification system to ensure 

that all workers in the United States are legally able to work, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 5, 2013 

Mr. DEFAZIO introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committees on Ways and 

Means and Education and the Workforce, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To create an electronic employment eligibility verification 

system to ensure that all workers in the United States 

are legally able to work, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Electronic Employ5 ment Eligibility Verification and Illegal Immigration Con6 trol Act’’. 


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1 SEC. 2. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM. 

2 (a) IN GENERAL.—Section 274A(b) of the Immigra3 tion and Nationality Act (8 U.S.C. 1324a(b)) is amended 

4 by adding at the end the following: 

5 ‘‘(7) EMPLOYMENT ELIGIBILITY VERIFICATION

6 SYSTEM.— 

7 ‘‘(A) IN GENERAL.—The Secretary of 

8 Homeland Security shall establish and admin9 ister a verification system through which the 

10 Secretary (or a designee of the Secretary)— 

11 ‘‘(i) responds to inquiries made by 

12 persons at any time through a toll-free 

13 telephone line and other toll-free electronic 

14 media concerning an individual’s identity 

15 and whether the individual is authorized to 

16 be employed; and 

17 ‘‘(ii) maintains records of the inquir18 ies that were made, of verifications pro19 vided (or not provided), and of the codes 

20 provided to inquirers as evidence of their 

21 compliance with their obligations under 

22 this section. 

23 ‘‘(B) DESIGN AND OPERATION OF SYS24 TEM.—The verification system shall be designed 

25 and operated— 


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1 ‘‘(i) to maximize its reliability and 

2 ease of use by persons and other entities 

3 consistent with insulating and protecting 

4 the privacy and security of the underlying 

5 information; 

6 ‘‘(ii) to respond to all inquiries made 

7 by such persons and entities on whether 

8 individuals are authorized to be employed 

9 and to register all times when such inquir10 ies are not received; 

11 ‘‘(iii) with appropriate administrative, 

12 technical, and physical safeguards to pre13 vent unauthorized disclosure of personal 

14 information; and 

15 ‘‘(iv) to have reasonable safeguards 

16 against the system’s resulting in unlawful 

17 discriminatory practices based on national 

18 origin or citizenship status, including— 

19 ‘‘(I) the selective or unauthorized 

20 use of the system to verify eligibility; 

21 ‘‘(II) the use of the system prior 

22 to an offer of employment; or 

23 ‘‘(III) the exclusion of certain in24 dividuals from consideration for em25 ployment as a result of a perceived 


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1 likelihood that additional verification 

2 will be required, beyond what is re3 quired for most job applicants. 

4 ‘‘(C) RESPONSIBILITIES OF THE COMMIS5 SIONER OF SOCIAL SECURITY.—As part of the 

6 verification system, the Commissioner of Social 

7 Security, in consultation with the Secretary of 

8 Homeland Security (and any designee of the 

9 Secretary selected to establish and administer 

10 the verification system), shall establish a reli11 able, secure method, which, within the time pe12 riods specified under subparagraphs (B) and 

13 (C) of paragraph (3), compares the name and 

14 Social Security account number provided in an 

15 inquiry against such information maintained by 

16 the Commissioner in order to validate (or not 

17 validate) the information provided regarding an 

18 individual whose identity and employment eligi19 bility must be confirmed, the correspondence of 

20 the name and number, and whether the indi21 vidual has presented a Social Security account 

22 number that is not valid for employment. The 

23 Commissioner shall not disclose or release So24 cial Security information (other than such 

25 verification or nonverification) except as proVerDate Mar 15 2010 21:22 Feb 14, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H502.IH H502

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1 vided for in this section or section 205(c)(2)(I) 

2 of the Social Security Act. 

3 ‘‘(D) RESPONSIBILITIES OF THE SEC4 RETARY OF HOMELAND SECURITY.— 

5 ‘‘(i) As part of the verification system, 

6 the Secretary of Homeland Security (in 

7 consultation with any designee of the Sec8 retary selected to establish and administer 

9 the verification system), shall establish a 

10 reliable, secure method, which, within the 

11 time periods specified under subparagraphs 

12 (B) and (C) of paragraph (3), compares 

13 the name and alien identification or au14 thorization number which are provided in 

15 an inquiry against such information main16 tained by the Secretary in order to validate 

17 (or not validate) the information provided, 

18 the correspondence of the name and num19 ber, and whether the alien is authorized to 

20 be employed in the United States. 

21 ‘‘(ii) When a single employer has sub22 mitted to the verification system pursuant 

23 to subparagraphs (B) and (C) of para24 graph (3) the identical Social Security ac25 count number in more than one instance, 


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1 or when multiple employers have submitted 

2 to the verification system pursuant to such 

3 paragraph the identical Social Security ac4 count number, in a manner which indicates 

5 the possible fraudulent use of that number, 

6 the Secretary of Homeland Security shall 

7 conduct an investigation, within the time 

8 periods specified in such subparagraphs, in 

9 order to ensure that no fraudulent use of 

10 a Social Security account number has 

11 taken place. If the Secretary has selected 

12 a designee to establish and administer the 

13 verification system, the designee shall no14 tify the Secretary when a single employer 

15 has submitted to the verification system 

16 pursuant to such subparagraphs the iden17 tical Social Security account number in 

18 more than one instance, or when multiple 

19 employers have submitted to the 

20 verification system pursuant to such para21 graph the identical Social Security account 

22 number, in a manner which indicates the 

23 possible fraudulent use of that number. 

24 The designee shall also provide the Sec25 retary with all pertinent information, inVerDate Mar 15 2010 21:22 Feb 14, 2013 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H502.IH H502

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1 cluding the name and address of the em2 ployer or employers who submitted the rel3 evant Social Security account number, the 

4 relevant Social Security account number 

5 submitted by the employer or employers, 

6 and the relevant name and date of birth of 

7 the employee submitted by the employer or 

8 employers. 

9 ‘‘(iii) The Secretary in consultation 

10 with the Commissioner of Social Security, 

11 shall establish procedures to permit an in12 dividual who contests a tentative or final 

13 nonverification notice, or seeks to verify 

14 the individual’s own employment, to con15 tact the appropriate agency and, in a time16 ly manner, correct or update the informa17 tion used by the system. 

18 ‘‘(iv) The Secretary shall prescribe a 

19 system to register employer participation 

20 prior to the date the employer is required 

21 or permitted to submit information with 

22 respect to an employee. 

23 ‘‘(E) UPDATING INFORMATION.—The 

24 Commissioner of Social Security and the Sec25 retary of Homeland Security shall update their 


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1 information in a manner that promotes the 

2 maximum accuracy and shall provide a process 

3 for the prompt correction of erroneous informa4 tion, including instances in which it is brought 

5 to their attention in the secondary verification 

6 process described in paragraph (3)(C). 

7 ‘‘(F) FEDERAL TORT CLAIMS ACT.—If an 

8 individual alleges that the individual would not 

9 have been dismissed from a job but for an error 

10 of the verification mechanism, the individual 

11 may seek compensation only through the mech12 anism of the Federal Tort Claims Act, and in13 junctive relief to correct such error. No class 

14 action may be brought under this subpara15 graph. 

16 ‘‘(G) PROTECTION FROM LIABILITY FOR

17 ACTIONS TAKEN ON THE BASIS OF INFORMA18 TION.—No person or entity shall be civilly or 

19 criminally liable for any action taken in good 

20 faith reliance on information provided through 

21 the employment eligibility verification mecha22 nism established under this paragraph.’’. 

23 (b) REPEAL OF PROVISION RELATING TO EVALUA24 TIONS AND CHANGES IN EMPLOYMENT VERIFICATION.— 


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1 Section 274A(d) of such Act (8 U.S.C. 1324a(d)) is re2 pealed. 

3 SEC. 3. EMPLOYMENT ELIGIBILITY VERIFICATION PROC4 ESS. 

5 Section 274A of the Immigration and Nationality Act 

6 (8 U.S.C. 1324a) is amended— 

7 (1) in subsection (a)(3), by inserting ‘‘(A)’’ 

8 after ‘‘DEFENSE.—’’, and by adding at the end the 

9 following: 

10 ‘‘(B) FAILURE TO SEEK AND OBTAIN

11 VERIFICATION.—In the case of a person or enti12 ty in the United States that hires, or continues 

13 to employ, an individual, or recruits or refers 

14 an individual for employment, the following re15 quirements apply: 

16 ‘‘(i) FAILURE TO SEEK

17 VERIFICATION.— 

18 ‘‘(I) IN GENERAL.—If the person 

19 or entity has not made an inquiry, 

20 under the mechanism established 

21 under subsection (b)(7), seeking 

22 verification of the identity and work 

23 eligibility of the individual, by not 

24 later than the end of 3 working days 

25 (as specified by the Secretary of 


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1 Homeland Security) after the date of 

2 the hiring, the date specified in sub3 section (b)(8)(B) for previously hired 

4 individuals, or before the recruiting or 

5 referring commences, the defense 

6 under subparagraph (A) shall not be 

7 considered to apply with respect to 

8 any employment, except as provided in 

9 subclause (II). 

10 ‘‘(II) SPECIAL RULE FOR FAIL11 URE OF VERIFICATION MECHANISM.— 

12 If such a person or entity in good 

13 faith attempts to make an inquiry in 

14 order to qualify for the defense under 

15 subparagraph (A) and the verification 

16 mechanism has registered that not all 

17 inquiries were responded to during the 

18 relevant time, the person or entity can 

19 make an inquiry until the end of the 

20 first subsequent working day in which 

21 the verification mechanism registers 

22 no nonresponses and qualify for such 

23 defense. 

24 ‘‘(ii) FAILURE TO OBTAIN

25 VERIFICATION.—If the person or entity 


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1 has made the inquiry described in clause 

2 (i)(I) but has not received an appropriate 

3 verification of such identity and work eligi4 bility under such mechanism within the 

5 time period specified under subsection 

6 (b)(7)(B) after the time the verification in7 quiry was received, the defense under sub8 paragraph (A) shall not be considered to 

9 apply with respect to any employment after 

10 the end of such time period.’’; 

11 (2) by amending subparagraph (A) of sub12 section (b)(1) to read as follows: 

13 ‘‘(A) IN GENERAL.—The person or entity 

14 must attest, under penalty of perjury and on a 

15 form designated or established by the Secretary 

16 by regulation, that it has verified that the indi17 vidual is not an unauthorized alien by— 

18 ‘‘(i) obtaining from the individual the 

19 individual’s Social Security account num20 ber and recording the number on the form 

21 (if the individual claims to have been 

22 issued such a number), and, if the indi23 vidual does not attest to United States citi24 zenship under paragraph (2), obtaining 

25 such identification or authorization number 


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1 established by the Department of Home2 land Security for the alien as the Secretary 

3 of Homeland Security may specify, and re4 cording such number on the form; and 

5 ‘‘(ii)(I) examining a document de6 scribed in subparagraph (B); or 

7 ‘‘(II) examining a document described 

8 in subparagraph (C) and a document de9 scribed in subparagraph (D). 

10 A person or entity has complied with the re11 quirement of this paragraph with respect to ex12 amination of a document if the document rea13 sonably appears on its face to be genuine, rea14 sonably appears to pertain to the individual 

15 whose identity and work eligibility is being 

16 verified, and, if the document bears an expira17 tion date, that expiration date has not elapsed. 

18 If an individual provides a document (or com19 bination of documents) that reasonably appears 

20 on its face to be genuine, reasonably appears to 

21 pertain to the individual whose identity and 

22 work eligibility is being verified, and is suffi23 cient to meet the first sentence of this para24 graph, nothing in this paragraph shall be con25 strued as requiring the person or entity to soVerDate Mar 15 2010 21:22 Feb 14, 2013 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H502.IH H502

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1 licit the production of any other document or as 

2 requiring the individual to produce another doc3 ument.’’; 

4 (3) in subsection (b)(1)(D)— 

5 (A) in clause (i), by striking ‘‘or such other 

6 personal identification information relating to 

7 the individual as the Attorney General finds, by 

8 regulation, sufficient for purposes of this sec9 tion’’; and 

10 (B) in clause (ii), by inserting before the 

11 period ‘‘and that contains a photograph of the 

12 individual’’; 

13 (4) in subsection (b)(2), by adding at the end 

14 the following: ‘‘The individual must also provide that 

15 individual’s Social Security account number (if the 

16 individual claims to have been issued such a num17 ber), and, if the individual does not attest to United 

18 States citizenship under this paragraph, such identi19 fication or authorization number established by the 

20 Department of Homeland Security for the alien as 

21 the Secretary may specify.’’; and 

22 (5) by amending paragraph (3) of subsection 

23 (b) to read as follows: 

24 ‘‘(3) RETENTION OF VERIFICATION FORM AND

25 VERIFICATION.— 


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1 ‘‘(A) IN GENERAL.—After completion of 

2 such form in accordance with paragraphs (1) 

3 and (2), the person or entity must— 

4 ‘‘(i) retain a paper, microfiche, micro5 film, or electronic version of the form and 

6 make it available for inspection by officers 

7 of the Department of Homeland Security, 

8 the Special Counsel for Immigration-Re9 lated Unfair Employment Practices, or the 

10 Department of Labor during a period be11 ginning on the date of the hiring, recruit12 ing, or referral of the individual or the 

13 date of the completion of verification of a 

14 previously hired individual and ending— 

15 ‘‘(I) in the case of the recruiting 

16 or referral of an individual, 3 years 

17 after the date of the recruiting or re18 ferral; 

19 ‘‘(II) in the case of the hiring of 

20 an individual, the later of— 

21 ‘‘(aa) 3 years after the date 

22 of such hiring; or 

23 ‘‘(bb) 1 year after the date 

24 the individual’s employment is 

25 terminated; and 


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1 ‘‘(III) in the case of the 

2 verification of a previously hired indi3 vidual, the later of— 

4 ‘‘(aa) 3 years after the date 

5 of the completion of verification; 

6 or 

7 ‘‘(bb) 1 year after the date 

8 the individual’s employment is 

9 terminated; 

10 ‘‘(ii) make an inquiry, as provided in 

11 paragraph (7), using the verification sys12 tem to seek verification of the identity and 

13 employment eligibility of an individual, by 

14 not later than the end of 3 working days 

15 (as specified by the Secretary of Homeland 

16 Security) after the date of the hiring or in 

17 the case of previously hired individuals, the 

18 date specified in paragraph (8)(B), or be19 fore the recruiting or referring commences; 

20 and 

21 ‘‘(iii) not commence recruitment or re22 ferral of the individual until the person or 

23 entity receives verification under clause (i) 

24 or (ii) of subparagraph (D). 


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1 ‘‘(B) INITIAL RESPONSE.—The verification 

2 system shall provide verification or a tentative 

3 nonverification of an individual’s identity and 

4 employment eligibility within 3 working days of 

5 the initial inquiry. If providing verification or 

6 tentative nonverification, the verification system 

7 shall provide an appropriate code indicating 

8 such verification or such nonverification. 

9 ‘‘(C) SECONDARY VERIFICATION PROCESS

10 IN CASE OF TENTATIVE NONVERIFICATION.—In 

11 cases of tentative nonverification, the Secretary 

12 shall specify, in consultation with the Commis13 sioner of Social Security, an available secondary 

14 verification process to confirm the validity of in15 formation provided and to provide a final 

16 verification or nonverification within 10 working 

17 days after the date of the tentative 

18 nonverification. When final verification or 

19 nonverification is provided, the verification sys20 tem shall provide an appropriate code indicating 

21 such verification or nonverification. 

22 ‘‘(D) VERIFICATION OR

23 NONVERIFICATION.— 

24 ‘‘(i) VERIFICATION UPON INITIAL IN25 QUIRY.—If an employer receives a 


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1 verification notice under subparagraph (B) 

2 for an individual, the employer shall 

3 record, as described in subparagraph 

4 (A)(i), the appropriate code provided in 

5 such notice. 

6 ‘‘(ii) TENTATIVE

7 NONVERIFICATION.—If an employer re8 ceives a tentative nonverification notice 

9 under subparagraph (B) for an individual, 

10 the employer shall inform such individual 

11 of the issuance of such notice in writing, 

12 on a form prescribed by the Secretary not 

13 later than 3 days after receiving such no14 tice. Such individual shall acknowledge re15 ceipt of such notice in writing as described 

16 in paragraph (1)(A). If the individual re17 fuses to acknowledge receipt of notice, the 

18 individual’s employment must be termi19 nated immediately. 

20 ‘‘(iii) NO CONTEST.—If the individual 

21 does not contest the tentative 

22 nonverification notice within 10 days of re23 ceiving notice from the individual’s em24 ployer, the notice shall become final and 

25 the employer shall record, as described in 


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1 subparagraph (A)(i), the appropriate code 

2 provided through the system to indicate 

3 the individual did not contest the tentative 

4 nonverification. An individual’s failure to 

5 contest a tentative nonverification shall not 

6 be considered an admission of guilt with 

7 respect to any violation of this Act or any 

8 other provision of law. 

9 ‘‘(iv) CONTEST.—If the individual 

10 contests the tentative nonverification no11 tice, the individual shall submit appro12 priate information to contest such notice 

13 under the procedures established in sub14 paragraph (E) not later than 10 days after 

15 receiving the notice from the individual’s 

16 employer. 

17 ‘‘(v) EFFECTIVE PERIOD OF TEN18 TATIVE NONVERIFICATION NOTICE.—A 

19 tentative nonverification notice shall re20 main in effect until such notice becomes 

21 final under clause (iii), or the earlier of— 

22 ‘‘(I) a final verification notice or 

23 final nonverification notice is issued 

24 through the system; or 


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1 ‘‘(II) 10 working days after the 

2 individual contests a tentative 

3 nonverification under clause (iv). 

4 ‘‘(vi) ADDITIONAL AUTHORITY.—The 

5 Secretary shall have the authority to issue 

6 a final verification notice for an individual. 

7 In such a case, the Secretary shall deter8 mine the individual’s eligibility for employ9 ment in the United States and record the 

10 results of such determination in the system 

11 within 12 months. 

12 ‘‘(vii) EFFECTIVE PERIOD OF FINAL

13 NOTICE.—A final verification notice issued 

14 under this paragraph for an individual 

15 shall remain in effect— 

16 ‘‘(I) during any continuous pe17 riod of employment of such individual 

18 by such employer, unless the Sec19 retary determines the final verification 

20 was the result of identity fraud; or 

21 ‘‘(II) in the case of an alien au22 thorized to be employed in the United 

23 States for a temporary period, during 

24 such period. 


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1 ‘‘(viii) PROHIBITION ON TERMI2 NATION.—An employer may not terminate 

3 the employment of an individual based on 

4 a tentative nonverification notice until such 

5 notice becomes final under clause (iii), an 

6 individual refuses to acknowledge receipt of 

7 tentative nonverification under clause (ii), 

8 or a final nonverification notice is issued 

9 for the individual by the System. Nothing 

10 in this clause shall prohibit the termination 

11 of employment for any other reason other 

12 than such tentative nonverification. 

13 ‘‘(ix) RECORDING OF CONTEST RESO14 LUTION.—The employer shall record the 

15 appropriate code that is provided through 

16 the system to indicate a final verification 

17 notice or final nonverification notice as de18 scribed in paragraph (1)(A). 

19 ‘‘(x) CONSEQUENCES OF

20 NONVERIFICATION.—If the employer has 

21 received a final nonverification regarding 

22 an individual, the employer shall terminate 

23 the employment, recruitment, or referral of 

24 the individual. Such employer shall provide 

25 to the Secretary any information relating 


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1 to the individual that the Secretary deter2 mines would assist the Secretary in enforc3 ing or administering the immigration laws. 

4 If the employer continues to employ, re5 cruit or refer the individual after receiving 

6 final nonverification, a rebuttable presump7 tion is created that the employer has vio8 lated subsections (a)(1)(A) and (a)(2). 

9 Such presumption may not apply to a 

10 prosecution under subsection (f)(1). 

11 ‘‘(E) ADMINISTRATIVE REVIEW.— 

12 ‘‘(i) IN GENERAL.—An individual who 

13 is terminated from employment as a result 

14 of a final nonverification notice may, not 

15 later than 60 days after the date of such 

16 termination, file an appeal of such notice. 

17 ‘‘(ii) PROCEDURES.—The Secretary 

18 and Commissioner of Social Security shall 

19 develop procedures to review appeals filed 

20 under clause (i) and to make final deter21 minations on such appeals. 

22 ‘‘(iii) REVIEW FOR ERRORS.—If a 

23 final determination on an appeal filed 

24 under clause (i) results in verification of 

25 an individual’s eligibility to work in the 


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1 United States, the administrative review 

2 process shall require the Secretary to de3 termine if the final nonverification notice 

4 issued for the individual was the result 

5 of— 

6 ‘‘(I) an error or negligence on the 

7 part of an employee or official oper8 ating or responsible for the System; 

9 ‘‘(II) the decision rules, proc10 esses, or procedures utilized by the 

11 system; or 

12 ‘‘(III) erroneous system informa13 tion that was not the result of acts or 

14 omissions of the individual. 

15 ‘‘(iv) COMPENSATION FOR ERROR.— 

16 ‘‘(I) IN GENERAL.—If the Sec17 retary makes a determination under 

18 clause (iii) that the final 

19 nonverification notice issued for an in20 dividual was not caused by an act or 

21 omission of the individual, the Sec22 retary shall compensate the individual 

23 for lost wages. 

24 ‘‘(II) CALCULATION OF LOST

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1 culated based on the wage rate and 

2 work schedule that prevailed prior to 

3 termination. The individual shall be 

4 compensated for wages lost beginning 

5 on the first scheduled work day after 

6 employment was terminated and end7 ing 180 days after completion of the 

8 administrative review process de9 scribed in this paragraph or the day 

10 after the individual is reinstated or 

11 obtains employment elsewhere, which12 ever occurs first. 

13 ‘‘(v) LIMITATION ON COMPENSA14 TION.—For purposes of determining an in15 dividual’s compensation for the loss of em16 ployment, such compensation shall not in17 clude any period in which the individual 

18 was ineligible for employment in the 

19 United States. 

20 ‘‘(vi) SOURCE OF FUNDS.—Compensa21 tion or reimbursement provided under this 

22 paragraph shall be provided from the Em23 ployment Verification Compensation Fund 

24 established under section 8 and shall not 

25 be provided from appropriated funds. 


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1 ‘‘(F) JUDICIAL REVIEW.— 

2 ‘‘(i) IN GENERAL.—After the Sec3 retary makes a final determination on an 

4 appeal filed by an individual under the ad5 ministrative review process described in 

6 subparagraph (E), the individual may ob7 tain judicial review of such determination 

8 by a civil action commenced not later than 

9 60 days after the date of such decision, or 

10 such further time as the Secretary may 

11 allow. 

12 ‘‘(ii) JURISDICTION.—A civil action 

13 for such judicial review shall be brought in 

14 the district court of the United States for 

15 the judicial district in which the plaintiff 

16 resides, or has a principal place of busi17 ness, or, if the plaintiff does not reside or 

18 have a principal place of business within 

19 any such judicial district, in the District 

20 Court of the United States for the District 

21 of Columbia. 

22 ‘‘(iii) ANSWER.—As part of the Sec23 retary’s answer to a complaint for such ju24 dicial review, the Secretary shall file a cer25 tified copy of the administrative record 


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1 compiled during the administrative review 

2 under subparagraph (E), including the evi3 dence upon which the findings and decision 

4 complained of are based. The court shall 

5 have power to enter, upon the pleadings 

6 and transcript of the record, a judgment 

7 affirming or reversing the result of that 

8 administrative review, with or without re9 manding the cause for a rehearing. 

10 ‘‘(iv) COMPENSATION FOR ERROR.— 

11 ‘‘(I) IN GENERAL.—In cases in 

12 which such judicial review reverses the 

13 final determination of the Secretary 

14 made under subparagraph (E), the 

15 court shall compensate the individual 

16 for lost wages. 

17 ‘‘(II) CALCULATION OF LOST

18 WAGES.—Lost wages shall be cal19 culated based on the wage rate and 

20 work scheduled that prevailed prior to 

21 termination. The individual shall be 

22 compensated for wages lost beginning 

23 on the first scheduled work day after 

24 employment was terminated and end25 ing 180 days after completion of the 


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1 judicial review described in this para2 graph or the day after the individual 

3 is reinstated or obtains employment 

4 elsewhere, whichever occurs first. 

5 ‘‘(G) LIMITATION ON USE OF THE

6 VERIFICATION SYSTEM AND ANY RELATED SYS7 TEMS.—Notwithstanding any other provision of 

8 law, nothing in this paragraph shall be con9 strued to permit or allow any department, bu10 reau, or other agency of the United States Gov11 ernment to utilize any information, database, or 

12 other records assembled under this paragraph 

13 for any other purpose other than as provided 

14 for. 

15 ‘‘(H) LIMITATION ON COLLECTION AND

16 USE OF DATA.— 

17 ‘‘(i) LIMITATION ON COLLECTION OF

18 DATA.— 

19 ‘‘(I) IN GENERAL.—The System 

20 shall collect and maintain only the 

21 minimum data necessary to facilitate 

22 the successful operation of the Sys23 tem, and in no case shall the data be 

24 other than— 


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1 ‘‘(aa) information necessary 

2 to register employers under para3 graph (7)(D)(iv); 

4 ‘‘(bb) information necessary 

5 to initiate and respond to inquir6 ies or contests under subpara7 graph (E); 

8 ‘‘(cc) information necessary 

9 to establish and enforce compli10 ance with paragraph (7)(D)(iv) 

11 and subparagraph (E); 

12 ‘‘(dd) information necessary 

13 to detect and prevent employ14 ment related identity fraud; and 

15 ‘‘(ee) such other information 

16 the Secretary determines is nec17 essary, subject to a 180 day no18 tice and comment period in the 

19 Federal Register. 

20 ‘‘(II) PENALTIES.—Any officer, 

21 employee, or contractor who willfully 

22 and knowingly collects and maintains 

23 data in the system other than data 

24 described in clause (i) shall be guilty 


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1 of a misdemeanor and fined not more 

2 than $1,000 for each violation. 

3 ‘‘(ii) LIMITATION ON USE OF DATA.— 

4 Whoever willfully and knowingly accesses, 

5 discloses, or uses any information obtained 

6 or maintained by the system— 

7 ‘‘(I) for the purpose of commit8 ting identity fraud, or assisting an9 other person in committing identity 

10 fraud, as defined in section 1028 of 

11 title 18, United States Code; 

12 ‘‘(II) for the purpose of unlaw13 fully obtaining employment in the 

14 United States or unlawfully obtaining 

15 employment in the United States for 

16 any other person; or 

17 ‘‘(III) for any purpose other than 

18 as provided for under any provision of 

19 law; 

20 shall be guilty of a felony and upon convic21 tion shall be fined under title 18, United 

22 States Code, or imprisoned for not less 

23 than 5 years, or both. 

24 ‘‘(iii) EXCEPTIONS.—Nothing in 

25 clauses (i) or (ii) may be construed to limit 


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1 the collection, maintenance, or use of data 

2 by the Commissioner of Internal Revenue 

3 or the Commissioner of Social Security as 

4 provided by law.’’. 

5 SEC. 4. EXPANSION OF EMPLOYMENT ELIGIBILITY 

6 VERIFICATION SYSTEM TO PREVIOUSLY 

7 HIRED INDIVIDUALS AND RECRUITING AND 

8 REFERRING. 

9 (a) APPLICATION TO RECRUITING AND REFER10 RING.—Section 274A of the Immigration and Nationality 

11 Act (8 U.S.C. 1324a) is amended— 

12 (1) in subsection (a)(1)(A), by striking ‘‘for a 

13 fee’’; 

14 (2) in subsection (a)(1), by amending subpara15 graph (B) to read as follows: 

16 ‘‘(B) to hire, continue to employ, or to re17 cruit or refer for employment in the United 

18 States an individual without complying with the 

19 requirements of subsection (b).’’; 

20 (3) in subsection (a)(2), by striking ‘‘after hir21 ing an alien for employment in accordance with 

22 paragraph (1),’’ and inserting ‘‘after complying with 

23 paragraph (1),’’; and 


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1 (4) in subsection (a)(3), as amended by section 

2 3, is further amended by striking ‘‘hiring,’’ and in3 serting ‘‘hiring, employing,’’ each place it appears. 

4 (b) EMPLOYMENT ELIGIBILITY VERIFICATION FOR

5 PREVIOUSLY HIRED INDIVIDUALS.—Section 274A(b) of 

6 such Act (8 U.S.C. 1324a(b)), as amended by section 2(a), 

7 is further amended by adding at the end the following: 

8 ‘‘(8) USE OF EMPLOYMENT ELIGIBILITY

9 VERIFICATION SYSTEM FOR PREVIOUSLY HIRED IN10 DIVIDUALS.— 

11 ‘‘(A) ON A VOLUNTARY BASIS.—Beginning 

12 on the date that is 2 years after the date of the 

13 enactment of the Electronic Employment Eligi14 bility Verification and Illegal Immigration Con15 trol Act and until the date specified in subpara16 graph (B)(iii), a person or entity may make an 

17 inquiry, as provided in paragraph (7), using the 

18 verification system to seek verification of the 

19 identity and employment eligibility of any indi20 vidual employed by the person or entity, as long 

21 as it is done on a nondiscriminatory basis. 

22 ‘‘(B) ON A MANDATORY BASIS.— 

23 ‘‘(i) A person or entity described in 

24 clause (ii) must make an inquiry as pro25 vided in paragraph (7), using the 


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1 verification system to seek verification of 

2 the identity and employment eligibility of 

3 all individuals employed by the person or 

4 entity who have not been previously subject 

5 to an inquiry by the person or entity by 

6 the date 3 years after the date of enact7 ment of the Electronic Employment Eligi8 bility Verification and Illegal Immigration 

9 Control Act. 

10 ‘‘(ii) A person or entity is described in 

11 this clause if it is a Federal, State, or local 

12 governmental body (including the Armed 

13 Forces of the United States), or if it em14 ploys individuals working in a location that 

15 is a Federal, State, or local government 

16 building, a military base, a nuclear energy 

17 site, a weapon site, an airport, or that con18 tains critical infrastructure (as defined in 

19 section 1016(e) of the Critical Infrastruc20 ture Protection Act of 2001 (42 U.S.C. 

21 5195c(e))), but only to the extent of such 

22 individuals. 

23 ‘‘(iii) All persons and entities other 

24 than those described in clause (ii) must 

25 make an inquiry, as provided in paragraph 


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1 (7), using the verification system to seek 

2 verification of the identity and employment 

3 eligibility of all individuals employed by the 

4 person or entity who have not been pre5 viously subject to an inquiry by the person 

6 or entity by the date 6 years after the date 

7 of enactment of the Electronic Employ8 ment Eligibility Verification and Illegal 

9 Immigration Control Act.’’. 

10 SEC. 5. BASIC PILOT PROGRAM. 

11 Section 401(b) of the Illegal Immigration Reform and 

12 Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 

13 note) is amended by striking ‘‘on September 30, 2012’’ 

14 and inserting ‘‘2 years after the enactment of the Elec15 tronic Employment Eligibility Verification and Illegal Im16 migration Control Act’’. 

17 SEC. 6. HIRING HALLS. 

18 Section 274A(h) of the Immigration and Nationality 

19 Act (8 U.S.C. 1324a(h)) is amended by adding at the end 

20 the following: 

21 ‘‘(4) RECRUITMENT AND REFERRAL.—As used 

22 in this section, the term ‘refer’ means the act of 

23 sending or directing a person or transmitting docu24 mentation or information to another, directly or in25 directly, with the intent of obtaining employment in 


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1 the United States for such person. Generally, only 

2 persons or entities referring for remuneration 

3 (whether on a retainer or contingency basis) are in4 cluded in the definition. However, labor service agen5 cies, whether public, private, for-profit, or nonprofit, 

6 that refer, dispatch, or otherwise facilitate the hiring 

7 of workers for any period of time by a third party 

8 are included in the definition whether or not they re9 ceive remuneration. As used in this section the term 

10 ‘recruit’ means the act of soliciting a person, directly 

11 or indirectly, and referring the person to another 

12 with the intent of obtaining employment for that 

13 person. Generally, only persons or entities recruiting 

14 for remunerations (whether on a retainer or contin15 gency basis) are included in the definition. However, 

16 labor service agencies, whether public, private, for17 profit, or nonprofit that refer, dispatch, or otherwise 

18 facilitate the hiring of workers for any period of 

19 time by a third party are included in the definition 

20 whether or not they receive remuneration.’’. 

21 SEC. 7. PENALTIES. 

22 Section 274A of the Immigration and Nationality Act 

23 (8 U.S.C. 1324a) is amended— 

24 (1) in subsection (e)(4)— 


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1 (A) in subparagraph (A), in the matter be2 fore clause (i), by inserting ‘‘, subject to para3 graphs (10) through (12),’’ after ‘‘in an 

4 amount’’; 

5 (B) in subparagraph (A)(i), by striking 

6 ‘‘not less than $250 and not more than 

7 $2,000’’ and inserting ‘‘not less than $5,000 

8 and not more than $15,000’’; 

9 (C) in subparagraph (A)(ii), by striking 

10 ‘‘not less than $2,000 and not more than 

11 $5,000’’ and inserting ‘‘not less than $10,000 

12 and not more than $15,000’’; 

13 (D) in subparagraph (A)(iii), by striking 

14 ‘‘not less than $3,000 and not more than 

15 $10,000’’ and inserting ‘‘not less than $25,000 

16 and not more than $40,000’’; and 

17 (E) by amending subparagraph (B) to read 

18 as follows: 

19 ‘‘(B) may require the person or entity to 

20 take such other remedial action as is appro21 priate.’’; 

22 (2) in subsection (e)(5)— 

23 (A) by inserting ‘‘, subject to paragraphs 

24 (10) through (12),’’ after ‘‘in an amount’’; 


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1 (B) by striking ‘‘$100’’ and inserting 

2 ‘‘$1,000’’; 

3 (C) by striking ‘‘$1,000’’ and inserting 

4 ‘‘$25,000’’; 

5 (D) by striking ‘‘the size of the business of 

6 the employer being charged, the good faith of 

7 the employer’’ and inserting ‘‘the good faith of 

8 the employer being charged’’; and 

9 (E) by adding at the end the following sen10 tence: ‘‘Failure by a person or entity to utilize 

11 the employment eligibility verification system as 

12 required by law, or providing information to the 

13 system that the person or entity knows or rea14 sonably believes to be false, shall be treated as 

15 a violation of subsection (a)(1)(A).’’; 

16 (3) by adding at the end of subsection (e) the 

17 following new paragraphs: 

18 ‘‘(10) MITIGATION OF CIVIL MONEY PENALTIES

19 FOR SMALLER EMPLOYERS.—In the case of imposi20 tion of a civil penalty under paragraph (4)(A) with 

21 respect to a violation of subsection (a)(1)(A) or 

22 (a)(2) for hiring or continuation of employment by 

23 an employer and in the case of imposition of a civil 

24 penalty under paragraph (5) for a violation of sub25 section (a)(1)(B) for hiring by an employer, the dolVerDate Mar 15 2010 21:22 Feb 14, 2013 Jkt 029200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H502.IH H502

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1 lar amounts otherwise specified in the respective 

2 paragraph shall be reduced as follows: 

3 ‘‘(A) In the case of an employer with an 

4 average of fewer than 26 full-time equivalent 

5 employees (as defined by the Secretary of 

6 Homeland Security), the amounts shall be re7 duced by 60 percent. 

8 ‘‘(B) In the case of an employer with an 

9 average of at least 26, but fewer than 101, full10 time equivalent employees (as so defined), the 

11 amounts shall be reduced by 40 percent. 

12 ‘‘(C) In the case of an employer with an 

13 average of at least 101, but fewer than 251, 

14 full-time equivalent employees (as so defined), 

15 the amounts shall be reduced by 20 percent. 

16 The last sentence of paragraph (4) shall apply under 

17 this paragraph in the same manner as it applies 

18 under such paragraph. 

19 ‘‘(11) EXEMPTION FROM PENALTY FOR INITIAL

20 GOOD FAITH VIOLATION.—In the case of imposition 

21 of a civil penalty under paragraph (4)(A) with re22 spect to a violation of subsection (a)(1)(A) or (a)(2) 

23 for hiring or continuation of employment or recruit24 ment or referral by person or entity and in the case 

25 of imposition of a civil penalty under paragraph (5) 


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1 for a violation of subsection (a)(1)(B) for hiring or 

2 recruitment or referral by a person or entity, the 

3 penalty otherwise imposed shall be waived if the vio4 lator establishes that it was the first such violation 

5 of such provision by the violator and the violator 

6 acted in good faith. 

7 ‘‘(12) SAFE HARBOR FOR CONTRACTORS.—A 

8 person or other entity shall be liable for a penalty 

9 under paragraph (4)(A) with respect to the violation 

10 of subsection (a)(1)(A), (a)(1)(B), or (a)(2) with re11 spect to the hiring or continuation of employment of 

12 an unauthorized alien by a subcontractor of that 

13 person or entity unless the person or entity verifies 

14 through the employment eligibility verification sys15 tem that all subcontractor employees and entities 

16 participating in the subcontracted employment are 

17 eligible for employment prior to beginning employ18 ment for the contracting person or entity. A con19 tracting person or entity shall not be required to 

20 verify a subcontractor if the contracting person or 

21 entity has previously verified the employment eligi22 bility of that subcontractor. A contracting person or 

23 entity shall not be required to verify the employment 

24 eligibility of a subcontractor employee if the person 

25 or entity has previously verified the subcontractor 


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1 employee as a result of the subcontractor employee’s 

2 previous employment on behalf of the person or enti3 ty as an employee of the subcontractor.’’; 

4 (4) by amending paragraph (1) of subsection (f) 

5 to read as follows: 

6 ‘‘(1) CRIMINAL PENALTY.—Any person or enti7 ty which engages in a pattern or practice of viola8 tions of subsection (a) (1) or (2) shall be fined not 

9 more than $50,000 for each unauthorized alien with 

10 respect to which such a violation occurs, imprisoned 

11 for not less than 1 year, or both, notwithstanding 

12 the provisions of any other Federal law relating to 

13 fine levels.’’; 

14 (5) in subsection (f)(2), by striking ‘‘Attorney 

15 General’’ each place it appears and inserting ‘‘Sec16 retary of Homeland Security’’; 

17 (6) by redesignating subsection (h) as sub18 section (j); 

19 (7) by inserting after subsection (g) the fol20 lowing: 

21 ‘‘(h) PROHIBITION ON AWARD OF GOVERNMENT

22 CONTRACTS, GRANTS AND AGREEMENTS.— 

23 ‘‘(1) EMPLOYERS WITH NO CONTRACTS, 

24 GRANTS, OR AGREEMENTS.— 


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1 ‘‘(A) IN GENERAL.—If an employer who 

2 does not hold a Federal contract, grant, or co3 operative agreement is determined by the Sec4 retary to be a repeat violator of this section or 

5 is convicted of a crime under this section, the 

6 employer shall be debarred from the receipt of 

7 a Federal contract, grant, or cooperative agree8 ment for a period of 5 years. The Secretary or 

9 the Attorney General shall advise the Adminis10 trator of General Services of such a debarment, 

11 and the Administrator of General Services shall 

12 list the employer on the List of Parties Ex13 cluded from Federal Procurement and Non14 procurement Programs for a period of 5 years. 

15 ‘‘(B) WAIVER.—The Administrator of Gen16 eral Services, in consultation with the Secretary 

17 and the Attorney General, may waive operation 

18 of this subsection or may limit the duration or 

19 scope of the debarment. 

20 ‘‘(2) EMPLOYERS WITH CONTRACTS, GRANTS, 

21 OR AGREEMENTS.—An employer who holds a Fed22 eral contract, grant, or cooperative agreement and is 

23 determined by the Secretary to be a repeat violator 

24 of this section or is convicted of a crime under this 

25 section, shall be debarred from the receipt of new 


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1 Federal contracts, grants, or cooperative agreements 

2 for a period of 5 years. 

3 ‘‘(i) PENALTY FOR FALSE ATTESTATION BY EM4 PLOYEE.—An individual who falsely represents that the 

5 individual is eligible for employment in the United States 

6 in an attestation required by this shall, for each such viola7 tion, be subject to a fine of not less than $5,000, a term 

8 of imprisonment not to exceed 3 years, or both.’’; and 

9 (8) by inserting after subsection (j) (as so re10 designated) the following: 

11 ‘‘(k) SPECIAL CRIMINAL PENALTIES FOR SUB12 CONTRACTORS AND LABOR BROKERS.—Any person or 

13 subcontracting entity which engages in a pattern or prac14 tice of violations of subsection (a)(1)(A) or (a)(2) shall 

15 be fined not less than $100,000 for each unauthorized 

16 alien with respect to whom such a violation occurs, impris17 oned for not less than 5 years for the entire pattern or 

18 practice, or both, notwithstanding the provisions of any 

19 other law relating to fine levels.’’. 

20 SEC. 8. COMPENSATION FUND. 

21 (a) ESTABLISHMENT.—There is established in the 

22 Treasury a separate account to be known as the ‘‘Employ23 ment Verification Compensation Fund’’ (in this section re24 ferred to as the ‘‘Fund’’). 


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1 (b) TRANSFERS TO THE FUND.—There shall be de2 posited in the Fund all fines and penalties collected under 

3 section 274A of the Immigration and Nationality Act (8 

4 U.S.C. 1324a). 

5 (c) EXPENDITURES.—Subject to appropriations Acts, 

6 amounts in the Fund shall be available for compensation 

7 pursuant to subparagraphs (E) and (F) of section 

8 274A(b)(3) of the Immigration and Nationality Act (8 

9 U.S.C. 1324a(b)(3)), as amended by section 3 of this Act. 

10 SEC. 9. CONTRACTOR DATABASE AND AUDITS. 

11 (a) DATABASE.—The Secretary of Homeland Secu12 rity shall create and maintain a publicly available and ac13 cessible online database of contracting and subcontracting 

14 individuals or entities which discloses the number of em15 ployment eligibility violations and employment eligibility 

16 verification rejections each contracting or subcontracting 

17 individual or entity has received. The database shall also 

18 disclose the total number of verification attempts each 

19 contracting or subcontracting individual or entity has 

20 made. 

21 (b) AUDIT.—The Secretary of Homeland Security 

22 shall audit and investigate any contracting or subcon23 tracting individual or entity which has a 10% or greater 

24 employment verification rejection rate. 


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1 SEC. 10. REPORT ON SOCIAL SECURITY CARD-BASED EM2 PLOYMENT ELIGIBILITY VERIFICATION. 

3 (a) REPORT.— 

4 (1) IN GENERAL.—Not later than 9 months 

5 after the date of the enactment of this Act, the 

6 Commissioner of Social Security, in consultation 

7 with the Secretary of Treasury, the Secretary of 

8 Homeland Security, and the Attorney General, shall 

9 submit a report to the Congress that includes an 

10 evaluation of the following requirements and 

11 changes: 

12 (A) A requirement that Social Security 

13 cards that are made of a durable plastic or 

14 similar material and that include an encrypted, 

15 machine-readable electronic identification strip 

16 and a digital photograph of the individual to 

17 whom the card is issued, be issued to each indi18 vidual (whether or not a United States citizen) 

19 who— 

20 (i) is authorized to be employed in the 

21 United States; 

22 (ii) is seeking employment in the 

23 United States; and 

24 (iii) files an application for such card, 

25 whether as a replacement of an existing 

26 Social Security card or as a card issued in 


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1 connection with the issuance of a new So2 cial Security account number. 

3 (B) The creation of a unified database to 

4 be maintained by the Department of Homeland 

5 Security and comprised of data from the Social 

6 Security Administration and the Department of 

7 Homeland Security specifying the work author8 ization of individuals (including both United 

9 States citizens and noncitizens) for the purpose 

10 of conducting employment eligibility 

11 verification. 

12 (C) A requirement that all employers verify 

13 the employment eligibility of all new hires using 

14 the Social Security cards described in subpara15 graph (A) and a phone, electronic card-reading, 

16 or other mechanism to seek verification of em17 ployment eligibility through the use of the uni18 fied database described in subparagraph (B). 

19 (2) ITEMS INCLUDED IN REPORT.—The report 

20 under paragraph (1) shall include an evaluation of 

21 each of the following: 

22 (A) Projected cost, including the cost to 

23 the Federal Government, State and local gov24 ernments, and the private sector. 

25 (B) Administrability. 


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1 (C) Potential effects on— 

2 (i) employers; 

3 (ii) employees, including employees 

4 who are United States citizens as well as 

5 those that are not citizens; 

6 (iii) tax revenue; and 

7 (iv) privacy. 

8 (D) The extent to which employer and em9 ployee compliance with immigration laws would 

10 be expected to improve. 

11 (E) Any other relevant information. 

12 (3) ALTERNATIVES.—The report under para13 graph (1) also shall examine any alternatives to 

14 achieve the same goals as the requirements and 

15 changes described in paragraph (1) but that involve 

16 lesser cost, lesser burden on those affected, or great17 er ease of administration. 

18 (b) INSPECTOR GENERAL REVIEW.—Not later than 

19 3 months after the report is submitted under subsection 

20 (a), the Inspector General of the Social Security Adminis21 tration, in consultation with the Inspectors General of the 

22 Department of Treasury, the Department of Homeland 

23 Security, and the Department of Justice, shall send to the 

24 Congress an evaluation of such report. 


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1 (c) CONGRESSIONAL CONSIDERATION.—Upon receipt 

2 of the Inspector General’s evaluation of the Commissioner 

3 of Social Security’s report, the Congress shall consider leg4 islation enacting a plan that best meets both the objectives 

5 outlined in this section as well as ease and feasibility of 

6 implementation based on the reports presented by the 

7 Commissioner of Social Security and the Inspector Gen8 eral. 

9 SEC. 11. EFFECTIVE DATE. 

10 This Act and the amendments made by this Act shall 

11 take effect on the date of enactment of this Act, except 

12 that the requirements of persons and entities to comply 

13 with the employment eligibility verification process shall 

14 take effect on the date that is 2 years after such date. 

15 SEC. 12. LIMITATION ON VERIFICATION RESPONSIBILITIES 

16 OF COMMISSIONER OF SOCIAL SECURITY. 

17 The Commissioner of Social Security is authorized to 

18 perform activities with respect to carrying out the Com19 missioner’s responsibilities in this Act or the amendments 

20 made by this Act, but only to the extent (except for the 

21 purpose of carrying out section 8) the Secretary of Home22 land Security has provided, in advance, funds to cover the 

23 Commissioner’s full costs in carrying out such responsibil24 ities. In no case shall funds from the Federal Old-Age and 

25 Survivors Insurance Trust Fund or the Federal Disability 


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1 Insurance Trust Fund be used to carry out such respon2 sibilities. 

3 SEC. 13. REPORT ON IMPACT ON CONTRACTING AND SUB4 CONTRACTING INDIVIDUALS AND ENTITIES. 

5 Not later than 12 months after the date of the enact6 ment of this Act, the Secretary of Homeland Security shall 

7 submit a report to the Congress that determines whether 

8 the described employment eligibility verification system 

9 permits contracting individuals and entities to determine 

10 the eligibility of subcontracting individuals or entities 

11 without unduly burdening contractors and without freeing 

12 subcontracting individuals or entities to break employment 

13 laws. 

14 SEC. 14. REPORT ON EMPLOYMENT ELIGIBILITY 

15 VERIFICATION SYSTEM. 

16 Not later than 1 year after the implementation of the 

17 employment eligibility verification system established 

18 under this Act, and 1 year thereafter, the Secretary of 

19 Homeland Security shall submit to the Congress a report 

20 on the progress and problems associated with implementa21 tion of the system, including information relating to the 

22 most efficient use of the system by small businesses. 

Æ 


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