be construed as requiring the person or en-
tity to solicit the production of any other 
document or as requiring the individual to 
produce another document.’’; 
(3) in subsection (b)(1)(D)— 
(A) in clause (i), by striking ‘‘or such other 
personal identification information relating to 
the individual as the Attorney General finds, by 
regulation, sufficient for purposes of this sec-
tion’’; and 
(B) in clause (ii), by inserting before the 
period ‘‘and that contains a photograph of the 
individual’’; 
(4) in subsection (b)(2), by adding at the end 
the following: ‘‘The individual must also provide that 
individual’s Social Security account number (if the 
individual claims to have been issued such a num-
ber), and, if the individual does not attest to United 
States citizenship under this paragraph, such identi-
fication or authorization number established by the 
Department of Homeland Security for the alien as 
the Secretary may specify.’’; and 
(5) by amending paragraph (3) of subsection 
(b) to read as follows: 
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‘‘(3) RETENTION OF VERIFICATION FORM AND 
VERIFICATION.— 
‘‘(A) IN
GENERAL.—After completion of 
such form in accordance with paragraphs (1) 
and (2), the person or entity must— 
‘‘(i) retain a paper, microfiche, micro-
film, or electronic version of the form and 
make it available for inspection by officers 
of the Department of Homeland Security, 
the Special Counsel for Immigration-Re-
lated Unfair Employment Practices, or the 
Department of Labor during a period be-
ginning on the date of the hiring, recruit-
ing, or referral of the individual or the 
date of the completion of verification of a 
previously hired individual and ending— 
‘‘(I) in the case of the recruiting 
or referral of an individual, 3 years 
after the date of the recruiting or re-
ferral; 
‘‘(II) in the case of the hiring of 
an individual, the later of— 
‘‘(aa) 3 years after the date 
of such hiring; or 
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‘‘(bb) 1 year after the date 
the individual’s employment is 
terminated; and 
‘‘(III) 
in 
the 
case 
of 
the 
verification of a previously hired indi-
vidual, the later of— 
‘‘(aa) 3 years after the date 
of the completion of verification; 
or 
‘‘(bb) 1 year after the date 
the individual’s employment is 
terminated; 
‘‘(ii) make an inquiry, as provided in 
paragraph (7), using the verification sys-
tem to seek verification of the identity and 
employment eligibility of an individual, by 
not later than the end of 3 working days 
(as specified by the Secretary of Homeland 
Security) after the date of the hiring or in 
the case of previously hired individuals, the 
date specified in paragraph (8)(B), or be-
fore the recruiting or referring commences; 
and 
‘‘(iii) not commence recruitment or re-
ferral of the individual until the person or 
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entity receives verification under clause (i) 
or (ii) of subparagraph (D). 
‘‘(B) INITIAL RESPONSE.—The verification 
system shall provide verification or a tentative 
nonverification of an individual’s identity and 
employment eligibility within 3 working days of 
the initial inquiry. If providing verification or 
tentative nonverification, the verification system 
shall provide an appropriate code indicating 
such verification or such nonverification. 
‘‘(C) SECONDARY VERIFICATION PROCESS 
IN CASE OF TENTATIVE NONVERIFICATION.—In 
cases of tentative nonverification, the Secretary 
shall specify, in consultation with the Commis-
sioner of Social Security, an available secondary 
verification process to confirm the validity of in-
formation provided and to provide a final 
verification or nonverification within 10 working 
days 
after 
the 
date 
of 
the 
tentative 
nonverification. When final verification or 
nonverification is provided, the verification sys-
tem shall provide an appropriate code indicating 
such verification or nonverification. 
‘‘(D) 
VERIFICATION
OR 
NONVERIFICATION.— 
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‘‘(i) VERIFICATION UPON INITIAL IN-
QUIRY.—If 
an 
employer 
receives 
a 
verification notice under subparagraph (B) 
for an individual, the employer shall 
record, as described in subparagraph 
(A)(i), the appropriate code provided in 
such notice. 
‘‘(ii) 
TENTATIVE 
NONVERIFICATION.—If an employer re-
ceives a tentative nonverification notice 
under subparagraph (B) for an individual, 
the employer shall inform such individual 
of the issuance of such notice in writing, 
on a form prescribed by the Secretary not 
later than 3 days after receiving such no-
tice. Such individual shall acknowledge re-
ceipt of such notice in writing as described 
in paragraph (1)(A). If the individual re-
fuses to acknowledge receipt of notice, the 
individual’s employment must be termi-
nated immediately. 
‘‘(iii) NO CONTEST.—If the individual 
does 
not 
contest 
the 
tentative 
nonverification notice within 10 days of re-
ceiving notice from the individual’s em-
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ployer, the notice shall become final and 
the employer shall record, as described in 
subparagraph (A)(i), the appropriate code 
provided through the system to indicate 
the individual did not contest the tentative 
nonverification. An individual’s failure to 
contest a tentative nonverification shall not 
be considered an admission of guilt with 
respect to any violation of this Act or any 
other provision of law. 
‘‘(iv) CONTEST.—If the individual 
contests the tentative nonverification no-
tice, the individual shall submit appro-
priate information to contest such notice 
under the procedures established in sub-
paragraph (E) not later than 10 days after 
receiving the notice from the individual’s 
employer. 
‘‘(v) EFFECTIVE
PERIOD
OF
TEN-
TATIVE
NONVERIFICATION
NOTICE.—A 
tentative nonverification notice shall re-
main in effect until such notice becomes 
final under clause (iii), or the earlier of— 
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‘‘(I) a final verification notice or 
final nonverification notice is issued 
through the system; or 
‘‘(II) 10 working days after the 
individual 
contests 
a 
tentative 
nonverification under clause (iv). 
‘‘(vi) ADDITIONAL
AUTHORITY.—The 
Secretary shall have the authority to issue 
a final verification notice for an individual. 
In such a case, the Secretary shall deter-
mine the individual’s eligibility for employ-
ment in the United States and record the 
results of such determination in the system 
within 12 months. 
‘‘(vii) EFFECTIVE PERIOD OF FINAL 
NOTICE.—A final verification notice issued 
under this paragraph for an individual 
shall remain in effect— 
‘‘(I) during any continuous pe-
riod of employment of such individual 
by such employer, unless the Sec-
retary determines the final verification 
was the result of identity fraud; or 
‘‘(II) in the case of an alien au-
thorized to be employed in the United 
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States for a temporary period, during 
such period. 
‘‘(viii) 
PROHIBITION
ON
TERMI-
NATION.—An employer may not terminate 
the employment of an individual based on 
a tentative nonverification notice until such 
notice becomes final under clause (iii), an 
individual refuses to acknowledge receipt of 
tentative nonverification under clause (ii), 
or a final nonverification notice is issued 
for the individual by the System. Nothing 
in this clause shall prohibit the termination 
of employment for any other reason other 
than such tentative nonverification. 
‘‘(ix) RECORDING OF CONTEST RESO-
LUTION.—The employer shall record the 
appropriate code that is provided through 
the system to indicate a final verification 
notice or final nonverification notice as de-
scribed in paragraph (1)(A). 
‘‘(x) 
CONSEQUENCES
OF 
NONVERIFICATION.—If the employer has 
received a final nonverification regarding 
an individual, the employer shall terminate 
the employment, recruitment, or referral of 
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the individual. Such employer shall provide 
to the Secretary any information relating 
to the individual that the Secretary deter-
mines would assist the Secretary in enforc-
ing or administering the immigration laws. 
If the employer continues to employ, re-
cruit or refer the individual after receiving 
final nonverification, a rebuttable presump-
tion is created that the employer has vio-
lated subsections (a)(1)(A) and (a)(2). 
Such presumption may not apply to a 
prosecution under subsection (f)(1). 
‘‘(E) ADMINISTRATIVE REVIEW.— 
‘‘(i) IN GENERAL.—An individual who 
is terminated from employment as a result 
of a final nonverification notice may, not 
later than 60 days after the date of such 
termination, file an appeal of such notice. 
‘‘(ii) PROCEDURES.—The Secretary 
and Commissioner of Social Security shall 
develop procedures to review appeals filed 
under clause (i) and to make final deter-
minations on such appeals. 
‘‘(iii) REVIEW
FOR
ERRORS.—If a 
final determination on an appeal filed 
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under clause (i) results in verification of 
an individual’s eligibility to work in the 
United States, the administrative review 
process shall require the Secretary to de-
termine if the final nonverification notice 
issued for the individual was the result 
of— 
‘‘(I) an error or negligence on the 
part of an employee or official oper-
ating or responsible for the System; 
‘‘(II) the decision rules, proc-
esses, or procedures utilized by the 
system; or 
‘‘(III) erroneous system informa-
tion that was not the result of acts or 
omissions of the individual. 
‘‘(iv) COMPENSATION FOR ERROR.— 
‘‘(I) IN
GENERAL.—If the Sec-
retary makes a determination under 
clause 
(iii) 
that 
the 
final 
nonverification notice issued for an in-
dividual was not caused by an act or 
omission of the individual, the Sec-
retary shall compensate the individual 
for lost wages. 
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‘‘(II) CALCULATION
OF
LOST 
WAGES.—Lost wages shall be cal-
culated based on the wage rate and 
work schedule that prevailed prior to 
termination. The individual shall be 
compensated for wages lost beginning 
on the first scheduled work day after 
employment was terminated and end-
ing 180 days after completion of the 
administrative 
review 
process 
de-
scribed in this paragraph or the day 
after the individual is reinstated or 
obtains employment elsewhere, which-
ever occurs first. 
‘‘(v) 
LIMITATION
ON
COMPENSA-
TION.—For purposes of determining an in-
dividual’s compensation for the loss of em-
ployment, such compensation shall not in-
clude any period in which the individual 
was ineligible for employment in the 
United States. 
‘‘(vi) SOURCE OF FUNDS.—Compensa-
tion or reimbursement provided under this 
paragraph shall be provided from the Em-
ployment Verification Compensation Fund 
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established under section 8 and shall not 
be provided from appropriated funds. 
‘‘(F) JUDICIAL REVIEW.— 
‘‘(i) IN
GENERAL.—After the Sec-
retary makes a final determination on an 
appeal filed by an individual under the ad-
ministrative review process described in 
subparagraph (E), the individual may ob-
tain judicial review of such determination 
by a civil action commenced not later than 
60 days after the date of such decision, or 
such further time as the Secretary may 
allow. 
‘‘(ii) JURISDICTION.—A civil action 
for such judicial review shall be brought in 
the district court of the United States for 
the judicial district in which the plaintiff 
resides, or has a principal place of busi-
ness, or, if the plaintiff does not reside or 
have a principal place of business within 
any such judicial district, in the District 
Court of the United States for the District 
of Columbia. 
‘‘(iii) ANSWER.—As part of the Sec-
retary’s answer to a complaint for such ju-
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dicial review, the Secretary shall file a cer-
tified copy of the administrative record 
compiled during the administrative review 
under subparagraph (E), including the evi-
dence upon which the findings and decision 
complained of are based. The court shall 
have power to enter, upon the pleadings 
and transcript of the record, a judgment 
affirming or reversing the result of that 
administrative review, with or without re-
manding the cause for a rehearing. 
‘‘(iv) COMPENSATION FOR ERROR.— 
‘‘(I) IN GENERAL.—In cases in 
which such judicial review reverses the 
final determination of the Secretary 
made under subparagraph (E), the 
court shall compensate the individual 
for lost wages. 
‘‘(II) CALCULATION
OF
LOST 
WAGES.—Lost wages shall be cal-
culated based on the wage rate and 
work scheduled that prevailed prior to 
termination. The individual shall be 
compensated for wages lost beginning 
on the first scheduled work day after 
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employment was terminated and end-
ing 180 days after completion of the 
judicial review described in this para-
graph or the day after the individual 
is reinstated or obtains employment 
elsewhere, whichever occurs first. 
‘‘(G) 
LIMITATION
ON
USE
OF
THE 
VERIFICATION SYSTEM AND ANY RELATED SYS-
TEMS.—Notwithstanding any other provision of 
law, nothing in this paragraph shall be con-
strued to permit or allow any department, bu-
reau, or other agency of the United States Gov-
ernment to utilize any information, database, or 
other records assembled under this paragraph 
for any other purpose other than as provided 
for. 
‘‘(H) LIMITATION
ON
COLLECTION
AND 
USE OF DATA.— 
‘‘(i) LIMITATION ON COLLECTION OF 
DATA.— 
‘‘(I) IN GENERAL.—The System 
shall collect and maintain only the 
minimum data necessary to facilitate 
the successful operation of the Sys-
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tem, and in no case shall the data be 
other than— 
‘‘(aa) information necessary 
to register employers under para-
graph (7)(D)(iv); 
‘‘(bb) information necessary 
to initiate and respond to inquir-
ies or contests under subpara-
graph (E); 
‘‘(cc) information necessary 
to establish and enforce compli-
ance with paragraph (7)(D)(iv) 
and subparagraph (E); 
‘‘(dd) information necessary 
to detect and prevent employ-
ment related identity fraud; and 
‘‘(ee) such other information 
the Secretary determines is nec-
essary, subject to a 180 day no-
tice and comment period in the 
Federal Register. 
‘‘(II) PENALTIES.—Any officer, 
employee, or contractor who willfully 
and knowingly collects and maintains 
data in the system other than data 
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described in clause (i) shall be guilty 
of a misdemeanor and fined not more 
than $1,000 for each violation. 
‘‘(ii) LIMITATION ON USE OF DATA.— 
Whoever willfully and knowingly accesses, 
discloses, or uses any information obtained 
or maintained by the system— 
‘‘(I) for the purpose of commit-
ting identity fraud, or assisting an-
other person in committing identity 
fraud, as defined in section 1028 of 
title 18, United States Code; 
‘‘(II) for the purpose of unlaw-
fully obtaining employment in the 
United States or unlawfully obtaining 
employment in the United States for 
any other person; or 
‘‘(III) for any purpose other than 
as provided for under any provision of 
law; 
shall be guilty of a felony and upon convic-
tion shall be fined under title 18, United 
States Code, or imprisoned for not less 
than 5 years, or both. 
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‘‘(iii) 
EXCEPTIONS.—Nothing 
in 
clauses (i) or (ii) may be construed to limit 
the collection, maintenance, or use of data 
by the Commissioner of Internal Revenue 
or the Commissioner of Social Security as 
provided by law.’’. 
SEC. 
4. 
EXPANSION 
OF 
EMPLOYMENT 
ELIGIBILITY 
VERIFICATION 
SYSTEM 
TO 
PREVIOUSLY 
HIRED INDIVIDUALS AND RECRUITING AND 
REFERRING. 
(a) APPLICATION
TO
RECRUITING
AND
REFER-
RING.—Section 274A of the Immigration and Nationality 
Act (8 U.S.C. 1324a) is amended— 
(1) in subsection (a)(1)(A), by striking ‘‘for a 
fee’’; 
(2) in subsection (a)(1), by amending subpara-
graph (B) to read as follows: 
‘‘(B) to hire, continue to employ, or to re-
cruit or refer for employment in the United 
States an individual without complying with the 
requirements of subsection (b).’’; 
(3) in subsection (a)(2), by striking ‘‘after hir-
ing an alien for employment in accordance with 
paragraph (1),’’ and inserting ‘‘after complying with 
paragraph (1),’’; and 
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(4) in subsection (a)(3), as amended by section 
3, is further amended by striking ‘‘hiring,’’ and in-
serting ‘‘hiring, employing,’’ each place it appears. 
(b) EMPLOYMENT ELIGIBILITY VERIFICATION FOR 
PREVIOUSLY HIRED INDIVIDUALS.—Section 274A(b) of 
such Act (8 U.S.C. 1324a(b)), as amended by section 2(a), 
is further amended by adding at the end the following: 
‘‘(8) 
USE
OF
EMPLOYMENT
ELIGIBILITY 
VERIFICATION SYSTEM FOR PREVIOUSLY HIRED IN-
DIVIDUALS.— 
‘‘(A) ON A VOLUNTARY BASIS.—Beginning 
on the date that is 2 years after the date of the 
enactment of the Electronic Employment Eligi-
bility Verification and Illegal Immigration Con-
trol Act and until the date specified in subpara-
graph (B)(iii), a person or entity may make an 
inquiry, as provided in paragraph (7), using the 
verification system to seek verification of the 
identity and employment eligibility of any indi-
vidual employed by the person or entity, as long 
as it is done on a nondiscriminatory basis. 
‘‘(B) ON A MANDATORY BASIS.— 
‘‘(i) A person or entity described in 
clause (ii) must make an inquiry as pro-
vided 
in 
paragraph 
(7), 
using 
the 
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verification system to seek verification of 
the identity and employment eligibility of 
all individuals employed by the person or 
entity who have not been previously subject 
to an inquiry by the person or entity by 
the date 3 years after the date of enact-
ment of the Electronic Employment Eligi-
bility Verification and Illegal Immigration 
Control Act. 
‘‘(ii) A person or entity is described in 
this clause if it is a Federal, State, or local 
governmental body (including the Armed 
Forces of the United States), or if it em-
ploys individuals working in a location that 
is a Federal, State, or local government 
building, a military base, a nuclear energy 
site, a weapon site, an airport, or that con-
tains critical infrastructure (as defined in 
section 1016(e) of the Critical Infrastruc-
ture Protection Act of 2001 (42 U.S.C. 
5195c(e))), but only to the extent of such 
individuals. 
‘‘(iii) All persons and entities other 
than those described in clause (ii) must 
make an inquiry, as provided in paragraph 
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(7), using the verification system to seek 
verification of the identity and employment 
eligibility of all individuals employed by the 
person or entity who have not been pre-
viously subject to an inquiry by the person 
or entity by the date 6 years after the date 
of enactment of the Electronic Employ-
ment Eligibility Verification and Illegal 
Immigration Control Act.’’. 
SEC. 5. BASIC PILOT PROGRAM. 
Section 401(b) of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
note) is amended by striking ‘‘on September 30, 2012’’ 
and inserting ‘‘2 years after the enactment of the Elec-
tronic Employment Eligibility Verification and Illegal Im-
migration Control Act’’. 
SEC. 6. HIRING HALLS. 
Section 274A(h) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(h)) is amended by adding at the end 
the following: 
‘‘(4) RECRUITMENT AND REFERRAL.—As used 
in this section, the term ‘refer’ means the act of 
sending or directing a person or transmitting docu-
mentation or information to another, directly or in-
directly, with the intent of obtaining employment in 
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the United States for such person. Generally, only 
persons or entities referring for remuneration 
(whether on a retainer or contingency basis) are in-
cluded in the definition. However, labor service agen-
cies, whether public, private, for-profit, or nonprofit, 
that refer, dispatch, or otherwise facilitate the hiring 
of workers for any period of time by a third party 
are included in the definition whether or not they re-
ceive remuneration. As used in this section the term 
‘recruit’ means the act of soliciting a person, directly 
or indirectly, and referring the person to another 
with the intent of obtaining employment for that 
person. Generally, only persons or entities recruiting 
for remunerations (whether on a retainer or contin-
gency basis) are included in the definition. However, 
labor service agencies, whether public, private, for- 
profit, or nonprofit that refer, dispatch, or otherwise 
facilitate the hiring of workers for any period of 
time by a third party are included in the definition 
whether or not they receive remuneration.’’. 
SEC. 7. PENALTIES. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (e)(4)— 
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(A) in subparagraph (A), in the matter be-
fore clause (i), by inserting ‘‘, subject to para-
graphs (10) through (12),’’ after ‘‘in an 
amount’’; 
(B) in subparagraph (A)(i), by striking 
‘‘not less than $250 and not more than 
$2,000’’ and inserting ‘‘not less than $5,000 
and not more than $15,000’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘not less than $2,000 and not more than 
$5,000’’ and inserting ‘‘not less than $10,000 
and not more than $15,000’’; 
(D) in subparagraph (A)(iii), by striking 
‘‘not less than $3,000 and not more than 
$10,000’’ and inserting ‘‘not less than $25,000 
and not more than $40,000’’; and 
(E) by amending subparagraph (B) to read 
as follows: 
‘‘(B) may require the person or entity to 
take such other remedial action as is appro-
priate.’’; 
(2) in subsection (e)(5)— 
(A) by inserting ‘‘, subject to paragraphs 
(10) through (12),’’ after ‘‘in an amount’’; 
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(B) by striking ‘‘$100’’ and inserting 
‘‘$1,000’’; 
(C) by striking ‘‘$1,000’’ and inserting 
‘‘$25,000’’; 
(D) by striking ‘‘the size of the business of 
the employer being charged, the good faith of 
the employer’’ and inserting ‘‘the good faith of 
the employer being charged’’; and 
(E) by adding at the end the following sen-
tence: ‘‘Failure by a person or entity to utilize 
the employment eligibility verification system as 
required by law, or providing information to the 
system that the person or entity knows or rea-
sonably believes to be false, shall be treated as 
a violation of subsection (a)(1)(A).’’; 
(3) by adding at the end of subsection (e) the 
following new paragraphs: 
‘‘(10) MITIGATION OF CIVIL MONEY PENALTIES 
FOR SMALLER EMPLOYERS.—In the case of imposi-
tion of a civil penalty under paragraph (4)(A) with 
respect to a violation of subsection (a)(1)(A) or 
(a)(2) for hiring or continuation of employment by 
an employer and in the case of imposition of a civil 
penalty under paragraph (5) for a violation of sub-
section (a)(1)(B) for hiring by an employer, the dol-
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lar amounts otherwise specified in the respective 
paragraph shall be reduced as follows: 
‘‘(A) In the case of an employer with an 
average of fewer than 26 full-time equivalent 
employees (as defined by the Secretary of 
Homeland Security), the amounts shall be re-
duced by 60 percent. 
‘‘(B) In the case of an employer with an 
average of at least 26, but fewer than 101, full- 
time equivalent employees (as so defined), the 
amounts shall be reduced by 40 percent. 
‘‘(C) In the case of an employer with an 
average of at least 101, but fewer than 251, 
full-time equivalent employees (as so defined), 
the amounts shall be reduced by 20 percent. 
The last sentence of paragraph (4) shall apply under 
this paragraph in the same manner as it applies 
under such paragraph. 
‘‘(11) EXEMPTION FROM PENALTY FOR INITIAL 
GOOD FAITH VIOLATION.—In the case of imposition 
of a civil penalty under paragraph (4)(A) with re-
spect to a violation of subsection (a)(1)(A) or (a)(2) 
for hiring or continuation of employment or recruit-
ment or referral by person or entity and in the case 
of imposition of a civil penalty under paragraph (5) 
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for a violation of subsection (a)(1)(B) for hiring or 
recruitment or referral by a person or entity, the 
penalty otherwise imposed shall be waived if the vio-
lator establishes that it was the first such violation 
of such provision by the violator and the violator 
acted in good faith. 
‘‘(12) SAFE
HARBOR
FOR
CONTRACTORS.—A 
person or other entity shall be liable for a penalty 
under paragraph (4)(A) with respect to the violation 
of subsection (a)(1)(A), (a)(1)(B), or (a)(2) with re-
spect to the hiring or continuation of employment of 
an unauthorized alien by a subcontractor of that 
person or entity unless the person or entity verifies 
through the employment eligibility verification sys-
tem that all subcontractor employees and entities 
participating in the subcontracted employment are 
eligible for employment prior to beginning employ-
ment for the contracting person or entity. A con-
tracting person or entity shall not be required to 
verify a subcontractor if the contracting person or 
entity has previously verified the employment eligi-
bility of that subcontractor. A contracting person or 
entity shall not be required to verify the employment 
eligibility of a subcontractor employee if the person 
or entity has previously verified the subcontractor 
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