vidual because of a failure of the indi-
vidual to have identity and work eligi-
bility confirmed under this subsection 
until a nonconfirmation becomes final. 
Nothing in this subclause shall apply 
to a recission of the offer of employ-
ment for any reason other than be-
cause of such a failure. 
‘‘(III) FINAL
VERIFICATION
OR 
NONVERIFICATION
RECEIVED.—If a 
final verification or nonverification is 
provided by the verification system re-
garding an individual, the person or 
entity shall record on the form an ap-
propriate code that is provided under 
the system and that indicates a 
verification or nonverification of iden-
tity and work eligibility of the indi-
vidual. 
‘‘(IV) EXTENSION OF TIME.—If 
the person or other entity in good 
faith attempts to make an inquiry 
during the time period specified and 
the verification system has registered 
that not all inquiries were received 
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during such time, the person or entity 
may make an inquiry in the first sub-
sequent working day in which the 
verification system registers that it 
has received all inquiries. If the 
verification system cannot receive in-
quiries at all times during a day, the 
person or entity merely has to assert 
that the entity attempted to make the 
inquiry on that day for the previous 
sentence to apply to such an inquiry, 
and does not have to provide any ad-
ditional proof concerning such inquiry. 
‘‘(V) 
CONSEQUENCES
OF 
NONVERIFICATION.— 
‘‘(aa) TERMINATION OR NO-
TIFICATION OF CONTINUED EM-
PLOYMENT.—If the person or 
other entity has received a final 
nonverification regarding an indi-
vidual, the person or entity may 
terminate employment of the in-
dividual (or decline to recruit or 
refer the individual). If the per-
son or entity does not terminate 
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employment of the individual or 
proceeds to recruit or refer the 
individual, the person or entity 
shall notify the Secretary of 
Homeland Security of such fact 
through the verification system 
or in such other manner as the 
Secretary may specify. 
‘‘(bb) 
FAILURE
TO
NO-
TIFY.—If the person or entity 
fails to provide notice with re-
spect to an individual as required 
under item (aa), the failure is 
deemed to constitute a violation 
of subsection (a)(1)(A) with re-
spect to that individual. 
‘‘(VI) CONTINUED EMPLOYMENT 
AFTER
FINAL
NONVERIFICATION.—If 
the person or other entity continues to 
employ (or to recruit or refer) an indi-
vidual after receiving final nonverifica-
tion, a rebuttable presumption is cre-
ated that the person or entity has vio-
lated subsection (a)(1)(A). 
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‘‘(D) CONTINUATION OF SEASONAL AGRI-
CULTURAL EMPLOYMENT.—An individual shall 
not be considered a new hire subject to 
verification under this paragraph if the indi-
vidual is engaged in seasonal agricultural em-
ployment and is returning to work for an em-
ployer that previously employed the individual. 
‘‘(E) EFFECTIVE DATES OF NEW PROCE-
DURES.— 
‘‘(i) HIRING.—Except as provided in 
clause (iii), the provisions of this para-
graph shall apply to a person or other enti-
ty hiring an individual for employment in 
the United States as follows: 
‘‘(I) With respect to employers 
having 10,000 or more employees in 
the United States on the date of the 
enactment of the Legal Workforce 
Act, on the date that is 6 months 
after the date of the enactment of 
such Act. 
‘‘(II) With respect to employers 
having 500 or more employees in the 
United States, but less than 10,000 
employees in the United States, on 
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the date of the enactment of the 
Legal Workforce Act, on the date that 
is 12 months after the date of the en-
actment of such Act. 
‘‘(III) With respect to employers 
having 20 or more employees in the 
United States, but less than 500 em-
ployees in the United States, on the 
date of the enactment of the Legal 
Workforce Act, on the date that is 18 
months after the date of the enact-
ment of such Act. 
‘‘(IV) With respect to employers 
having 1 or more employees in the 
United States, but less than 20 em-
ployees in the United States, on the 
date of the enactment of the Legal 
Workforce Act, on the date that is 24 
months after the date of the enact-
ment of such Act. 
‘‘(ii) RECRUITING AND REFERRING.— 
Except as provided in clause (iii), the pro-
visions of this paragraph shall apply to a 
person or other entity recruiting or refer-
ring an individual for employment in the 
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United States on the date that is 12 
months after the date of the enactment of 
the Legal Workforce Act. 
‘‘(iii) AGRICULTURAL LABOR OR SERV-
ICES.—With respect to an employee per-
forming agricultural labor or services (as 
defined 
for 
purposes 
of 
section 
101(a)(15)(H)(ii)(a)), this paragraph shall 
not apply with respect to the verification of 
the employee until the date that is 36 
months after the date of the enactment of 
the Legal Workforce Act. An employee de-
scribed in this clause shall not be counted 
for purposes of clause (i). 
‘‘(iv) TRANSITION RULE.—Subject to 
paragraph (4), the following shall apply to 
a person or other entity hiring, recruiting, 
or referring an individual for employment 
in the United States until the effective 
date or dates applicable under clauses (i) 
through (iii): 
‘‘(I) This subsection, as in effect 
before the enactment of the Legal 
Workforce Act. 
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‘‘(II) Subtitle A of title IV of the 
Illegal Immigration Reform and Im-
migrant Responsibility Act of 1996 (8 
U.S.C. 1324a note), as in effect be-
fore the effective date in section 7(c) 
of the Legal Workforce Act. 
‘‘(III) Any other provision of 
Federal law requiring the person or 
entity to participate in the E-Verify 
Program described in section 403(a) 
of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note), as in effect be-
fore the effective date in section 7(c) 
of the Legal Workforce Act, including 
Executive Order 13465 (8 U.S.C. 
1324a note; relating to Government 
procurement). 
‘‘(F) VERIFICATION PERIOD DEFINED.— 
‘‘(i) IN
GENERAL.—For purposes of 
this paragraph: 
‘‘(I) In the case of recruitment or 
referral, the term ‘verification period’ 
means the period ending on the date 
recruiting or referring commences. 
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‘‘(II) In the case of hiring, the 
term ‘verification period’ means the 
period beginning on the date on which 
an offer of employment is extended 
and ending on the date that is 3 busi-
ness days after the date of hiring. The 
offer of employment may be condi-
tioned in accordance with clause (ii). 
‘‘(ii) JOB
OFFER
MAY
BE
CONDI-
TIONAL.—A person or other entity may 
offer a prospective employee an employ-
ment position that is conditioned on final 
verification of the identity and employment 
eligibility of the employee using the proce-
dures established under this paragraph. 
‘‘(2) REVERIFICATION FOR INDIVIDUALS WITH 
LIMITED WORK AUTHORIZATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a person or entity shall 
make an inquiry, as provided in subsection (d), 
using the verification system to seek reverifica-
tion of the identity and employment eligibility 
of all individuals with a limited period of work 
authorization employed by the person or entity 
during the 30-day period ending on the date the 
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employee’s work authorization expires as fol-
lows: 
‘‘(i) With respect to employers having 
10,000 or more employees in the United 
States on the date of the enactment of the 
Legal Workforce Act, beginning on the 
date that is 6 months after the date of the 
enactment of such Act. 
‘‘(ii) With respect to employers having 
500 or more employees in the United 
States, but less than 10,000 employees in 
the United States, on the date of the en-
actment of the Legal Workforce Act, be-
ginning on the date that is 12 months 
after the date of the enactment of such 
Act. 
‘‘(iii) With respect to employers hav-
ing 20 or more employees in the United 
States, but less than 500 employees in the 
United States, on the date of the enact-
ment of the Legal Workforce Act, begin-
ning on the date that is 18 months after 
the date of the enactment of such Act. 
‘‘(iv) With respect to employers hav-
ing 1 or more employees in the United 
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States, but less than 20 employees in the 
United States, on the date of the enact-
ment of the Legal Workforce Act, begin-
ning on the date that is 24 months after 
the date of the enactment of such Act. 
‘‘(B) AGRICULTURAL
LABOR
OR
SERV-
ICES.—With respect to an employee performing 
agricultural labor or services (as defined for 
purposes of section 101(a)(15)(H)(ii)(a)), sub-
paragraph (A) shall not apply with respect to 
the reverification of the employee until the date 
that is 36 months after the date of the enact-
ment of the Legal Workforce Act. An employee 
described in this subparagraph shall not be 
counted for purposes of subparagraph (A). 
‘‘(C) 
REVERIFICATION.—Paragraph 
(1)(C)(ii) shall apply to reverifications pursuant 
to this paragraph on the same basis as it ap-
plies to verifications pursuant to paragraph (1), 
except that employers shall— 
‘‘(i) use a form designated or estab-
lished by the Secretary by regulation for 
purposes of this paragraph in lieu of the 
verification form under paragraph (1); and 
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‘‘(ii) 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 the period be-
ginning on the date the reverification com-
mences and ending on the date that is the 
later of 3 years after the date of such 
reverification or 1 year after the date the 
individual’s employment is terminated. 
‘‘(D) NOTICE.—The Secretary of Home-
land Security shall notify a person or entity em-
ploying a person with limited work authoriza-
tion of the date on which the limited work au-
thorization expires. 
‘‘(3) PREVIOUSLY HIRED INDIVIDUALS.— 
‘‘(A) ON A MANDATORY BASIS FOR CER-
TAIN EMPLOYEES.— 
‘‘(i) IN GENERAL.—Not later than the 
date that is 6 months after the date of the 
enactment of the Legal Workforce Act, an 
employer shall make an inquiry, as pro-
vided 
in 
subsection 
(d), 
using 
the 
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verification system to seek verification of 
the identity and employment eligibility of 
any individual described in clause (ii) em-
ployed by the employer whose employment 
eligibility has not been verified under the 
E-Verify Program described in section 
403(a) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note). 
‘‘(ii) INDIVIDUALS
DESCRIBED.—An 
individual described in this clause is any of 
the following: 
‘‘(I) An employee of any unit of 
a Federal, State, or local government. 
‘‘(II) An employee who requires a 
Federal security clearance working in 
a Federal, State or local government 
building, a military base, a nuclear 
energy site, a weapons site, or an air-
port or other facility that requires 
workers to carry a Transportation 
Worker 
Identification 
Credential 
(TWIC). 
‘‘(III) An employee assigned to 
perform work in the United States 
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the employer shall make inquiries to the system 
in accordance with the following: 
‘‘(i) The Commissioner of Social Secu-
rity shall notify annually employees (at the 
employee address listed on the Wage and 
Tax Statement) who submit a social secu-
rity account number to which more than 
one employer reports income and for which 
there is a pattern of unusual multiple use. 
The notification letter shall identify the 
number of employers to which, and the 
States in which, income is being reported 
as well as sufficient information notifying 
the employee of the process to contact the 
Social Security Administration Fraud Hot-
line if the employee believes the employee’s 
identity may have been stolen. The notice 
shall not share information protected as 
private, in order to avoid any recipient of 
the notice being in the position to further 
identity theft. 
‘‘(ii) If the person to whom the social 
security account number was issued by the 
Social Security Administration has been 
identified and confirmed by Commissioner, 
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and indicates that the social security ac-
count number was used without their 
knowledge, the Secretary and the Commis-
sioner shall lock the social security account 
number for employment eligibility verifica-
tion purposes and shall notify the employ-
ers of the individuals who wrongfully sub-
mitted the social security account number 
that the employee may not be work eligi-
ble. 
‘‘(iii) Each employer receiving such 
notification of invalid social security ac-
count number shall use the verification 
system described in subsection (d) to check 
the work eligibility status of the applicable 
employee within 10 business days of re-
ceipt of the notification of invalid social se-
curity account number under clause (ii). 
‘‘(C) ON A MANDATORY BASIS FOR CER-
TAIN
MISMATCHED
WAGE
AND
TAX
STATE-
MENTS.— 
‘‘(i) IN GENERAL.—In the case of an 
employer who is required by this sub-
section to use the verification system de-
scribed in subsection (d), or has elected 
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voluntarily to use such system, and who re-
ceives a notice described in clause (ii) iden-
tifying an individual employee, the em-
ployer shall, not later than 30 calendar 
days after receipt of such notice, use the 
verification system described in subsection 
(d) to verify the employment eligibility of 
the employee in accordance with the in-
structions in such notice if the individual is 
still on the payroll of the employer. 
‘‘(ii) NOTICE.—The Commissioner of 
Social Security shall issue a notice to an 
employer submitting one or more mis-
matched wage and tax statements or cor-
rected wage and tax statements containing 
the following: 
‘‘(I) A description of the mis-
matched information. 
‘‘(II) An explanation of the steps 
that the employer is required to take 
to correct the mismatched informa-
tion. 
‘‘(III) An explanation of the em-
ployment eligibility verification re-
quirement described in clause (i). 
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‘‘(D) ON A VOLUNTARY BASIS.—Subject to 
paragraph (2), and subparagraphs (A) through 
(C) of this paragraph, beginning on the date 
that is 30 days after the date of the enactment 
of the Legal Workforce Act, an employer may 
make an inquiry, as provided in subsection (d), 
using the verification system to seek verification 
of the identity and employment eligibility of any 
individual employed by the employer. If an em-
ployer chooses voluntarily to seek verification of 
any individual employed by the employer, the 
employer shall seek verification of all individ-
uals so employed. An employer’s decision about 
whether or not voluntarily to seek verification 
of its current workforce under this subpara-
graph may not be considered by any govern-
ment agency in any proceeding, investigation, 
or review provided for in this Act. 
‘‘(E) 
VERIFICATION.—Paragraph 
(1)(C)(ii) shall apply to verifications pursuant 
to this paragraph on the same basis as it ap-
plies to verifications pursuant to paragraph (1), 
except that employers shall— 
‘‘(i) use a form designated or estab-
lished by the Secretary by regulation for 
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purposes of this paragraph in lieu of the 
verification form under paragraph (1); and 
‘‘(ii) 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 the period be-
ginning on the date the verification com-
mences and ending on the date that is the 
later of 3 years after the date of such 
verification or 1 year after the date the in-
dividual’s employment is terminated. 
‘‘(4) EARLY COMPLIANCE.— 
‘‘(A) FORMER E-VERIFY REQUIRED USERS, 
INCLUDING FEDERAL CONTRACTORS.—Notwith-
standing the deadlines in paragraphs (1) and 
(2), beginning on the earlier of the date that is 
6 months after the date of the enactment of the 
Legal Workforce Act and the date on which the 
Secretary implements the system under sub-
section (d), the Secretary is authorized to com-
mence requiring employers required to partici-
pate in the E–Verify Program described in sec-
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tion 403(a) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 
U.S.C. 1324a note), including employers re-
quired to participate in such program by reason 
of Federal acquisition laws (and regulations 
promulgated under those laws, including the 
Federal Acquisition Regulation), to commence 
compliance with the requirements of this sub-
section (and any additional requirements of 
such Federal acquisition laws and regulation) in 
lieu of any requirement to participate in the E- 
Verify Program. 
‘‘(B) 
FORMER
E-VERIFY
VOLUNTARY 
USERS AND OTHERS DESIRING EARLY COMPLI-
ANCE.—Notwithstanding the deadlines in para-
graphs (1) and (2), beginning 30 days after the 
date of the enactment of the Legal Workforce 
Act, the Secretary shall provide for the vol-
untary compliance with the requirements of this 
subsection by employers voluntarily electing to 
participate in the E–Verify Program described 
in section 403(a) of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note) before such date, as well 
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as by other employers seeking voluntary early 
compliance. 
‘‘(5) 
COPYING
OF
DOCUMENTATION
PER-
MITTED.—Notwithstanding any other provision of 
law, the person or entity may copy a document pre-
sented by an individual pursuant to this subsection 
and may retain the copy, but only (except as other-
wise permitted under law) for the purpose of com-
plying with the requirements of this subsection. 
‘‘(6) LIMITATION ON USE OF FORMS.—A form 
designated or established by the Secretary of Home-
land Security under this subsection and any infor-
mation contained in or appended to such form, may 
not be used for purposes other than for enforcement 
of this Act and any other provision of Federal crimi-
nal law. 
‘‘(7) GOOD FAITH COMPLIANCE.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this subsection, a person or entity 
is considered to have complied with a require-
ment of this subsection notwithstanding a tech-
nical or procedural failure to meet such require-
ment if there was a good faith attempt to com-
ply with the requirement. 
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‘‘(B) EXCEPTION IF FAILURE TO CORRECT 
AFTER
NOTICE.—Subparagraph (A) shall not 
apply if— 
‘‘(i) the failure is not de minimus; 
‘‘(ii) the Secretary of Homeland Secu-
rity has explained to the person or entity 
the basis for the failure and why it is not 
de minimus; 
‘‘(iii) the person or entity has been 
provided a period of not less than 30 cal-
endar days (beginning after the date of the 
explanation) within which to correct the 
failure; and 
‘‘(iv) the person or entity has not cor-
rected the failure voluntarily within such 
period. 
‘‘(C) EXCEPTION FOR PATTERN OR PRAC-
TICE VIOLATORS.—Subparagraph (A) shall not 
apply to a person or entity that has or is engag-
ing in a pattern or practice of violations of sub-
section (a)(1)(A) or (a)(2).’’. 
SEC. 3. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM. 
Section 274A(d) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(d)) is amended to read as follows: 
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‘‘(d) EMPLOYMENT ELIGIBILITY VERIFICATION SYS-
TEM.— 
‘‘(1) IN GENERAL.—Patterned on the employ-
ment eligibility confirmation system established 
under section 404 of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 
1324a note), the Secretary of Homeland Security 
shall establish and administer a verification system 
through which the Secretary (or a designee of the 
Secretary, which may be a nongovernmental enti-
ty)— 
‘‘(A) responds to inquiries made by per-
sons at any time through a toll-free telephone 
line and other toll-free electronic media con-
cerning an individual’s identity and whether the 
individual is authorized to be employed; and 
‘‘(B) maintains records of the inquiries 
that were made, of verifications provided (or 
not provided), and of the codes provided to in-
quirers as evidence of their compliance with 
their obligations under this section. 
‘‘(2) INITIAL RESPONSE.—The verification sys-
tem shall provide verification or a tentative 
nonverification of an individual’s identity and em-
ployment eligibility within 3 working days of the ini-
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tial inquiry. If providing verification or tentative 
nonverification, the verification system shall provide 
an appropriate code indicating such verification or 
such nonverification. 
‘‘(3) SECONDARY
VERIFICATION
PROCESS
IN 
CASE OF TENTATIVE NONVERIFICATION.—In cases 
of tentative nonverification, the Secretary shall 
specify, in consultation with the Commissioner of 
Social Security, an available secondary verification 
process to confirm the validity of information pro-
vided 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 system shall provide an appropriate code 
indicating such verification or nonverification. 
‘‘(4) DESIGN AND OPERATION OF SYSTEM.— 
The verification system shall be designed and oper-
ated— 
‘‘(A) to maximize its reliability and ease of 
use by persons and other entities consistent 
with insulating and protecting the privacy and 
security of the underlying information; 
‘‘(B) to respond to all inquiries made by 
such persons and entities on whether individ-
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uals are authorized to be employed and to reg-
ister all times when such inquiries are not re-
ceived; 
‘‘(C) with appropriate administrative, tech-
nical, and physical safeguards to prevent unau-
thorized disclosure of personal information; 
‘‘(D) to have reasonable safeguards against 
the system’s resulting in unlawful discrimina-
tory practices based on national origin or citi-
zenship status, including— 
‘‘(i) the selective or unauthorized use 
of the system to verify eligibility; or 
‘‘(ii) the exclusion of certain individ-
uals from consideration for employment as 
a result of a perceived likelihood that addi-
tional verification will be required, beyond 
what is required for most job applicants; 
and 
‘‘(E) to limit the subjects of verification to 
the following individuals: 
‘‘(i) Individuals hired, referred, or re-
cruited, in accordance with paragraph (1) 
or (4) of subsection (b). 
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‘‘(ii) Employees and prospective em-
ployees, in accordance with paragraph (2), 
(3), or (4) of subsection (b). 
‘‘(iii) Individuals seeking to confirm 
their own employment eligibility on a vol-
untary basis. 
‘‘(5) RESPONSIBILITIES OF COMMISSIONER OF 
SOCIAL SECURITY.—As part of the verification sys-
tem, the Commissioner of Social Security, in con-
sultation with the Secretary of Homeland Security 
(and any designee of the Secretary selected to estab-
lish and administer the verification system), shall es-
tablish a reliable, secure method, which, within the 
time periods specified under paragraphs (2) and (3), 
compares the name and social security account num-
ber provided in an inquiry against such information 
maintained by the Commissioner in order to validate 
(or not validate) the information provided regarding 
an individual whose identity and employment eligi-
bility must be confirmed, the correspondence of the 
name and number, and whether the individual has 
presented a social security account number that is 
not valid for employment. The Commissioner shall 
not disclose or release social security information 
(other than such verification or nonverification) ex-
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cept as provided for in this section or section 
205(c)(2)(I) of the Social Security Act. 
‘‘(6) RESPONSIBILITIES
OF
SECRETARY
OF 
HOMELAND SECURITY.—As part of the verification 
system, the Secretary of Homeland Security (in con-
sultation with any designee of the Secretary selected 
to establish and administer the verification system), 
shall establish a reliable, secure method, which, with-
in the time periods specified under paragraphs (2) 
and (3), compares the name and alien identification 
or authorization number which are provided in an 
inquiry against such information maintained by the 
Secretary in order to validate (or not validate) the 
information provided, the correspondence of the 
name and number, and whether the alien is author-
ized to be employed in the United States. 
‘‘(7) OFFENSES.— 
‘‘(A) IN GENERAL.—Any person or entity 
that, in making an inquiry under subsection 
(b)(1)(C)(i)(II), provides to the verification sys-
tem a social security account number or an 
identification or authorization number estab-
lished by the Secretary of Homeland Security 
that belongs to a person other than the indi-
vidual whose identity and employment author-
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ization are being verified, knowing that the 
number does not belong to the individual whose 
identity and employment authorization are 
being verified, shall be fined under title 18, 
United States Code, imprisoned not less than 1 
year and not more than 15 years, or both. If 
the person or entity, in making an inquiry 
under subsection (b)(1)(C)(i)(II), during and in 
relation to any felony violation enumerated in 
section 1028A(c) of title 18, United States 
Code, provides to the verification system a so-
cial security account number or an identifica-
tion or authorization number established by the 
Secretary of Homeland Security that belongs to 
a person other than the individual whose iden-
tity and employment authorization are being 
verified, knowing that the number does not be-
long to the individual whose identity and work 
authorization are being verified, in addition to 
the punishment provided for such felony, shall 
be fined under title 18, United States Code, im-
prisoned for a term of 2 years, or both. 
‘‘(B) CONSECUTIVE SENTENCE.—Notwith-
standing any other provision of law— 
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‘‘(i) a court shall not place on proba-
tion any person or entity convicted of a 
violation of this paragraph; 
‘‘(ii) except as provided in clause (iv), 
no term of imprisonment imposed on a 
person or entity under this section shall 
run concurrently with any other term of 
imprisonment imposed on the person or en-
tity under any other provision of law, in-
cluding any term of imprisonment imposed 
for the felony enumerated in section 
1028A(c) of title 18, United States Code, 
during which the violation of this para-
graph occurred; 
‘‘(iii) in determining any term of im-
prisonment to be imposed for the felony 
enumerated in section 1028A(c) of title 18, 
United States Code, during which the vio-
lation of this section occurred, a court 
shall not in any way reduce the term to be 
imposed for such crime so as to com-
pensate for, or otherwise take into account, 
any separate term of imprisonment im-
posed or to be imposed for a violation of 
this paragraph; and 
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‘‘(iv) a term of imprisonment imposed 
on a person or entity for a violation of this 
paragraph may, in the discretion of the 
court, run concurrently, in whole or in 
part, only with another term of imprison-
ment that is imposed by the court at the 
same time on that person or entity for an 
additional violation of this paragraph, ex-
cept that such discretion shall be exercised 
in accordance with any applicable guide-
lines and policy statements issued by the 
United States Sentencing Commission pur-
suant to section 994 of title 28, United 
States Code. 
‘‘(8) UPDATING INFORMATION.—The Commis-
sioner of Social Security and the Secretary of Home-
land Security shall update their information in a 
manner that promotes the maximum accuracy and 
shall provide a process for the prompt correction of 
erroneous information, including instances in which 
it is brought to their attention in the secondary 
verification process described in paragraph (3). 
‘‘(9) 
LIMITATION
ON
USE
OF
THE 
VERIFICATION
SYSTEM
AND
ANY
RELATED
SYS-
TEMS.— 
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‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of law, nothing in this section 
shall be construed to permit or allow any de-
partment, bureau, or other agency of the 
United States Government to utilize any infor-
mation, data base, or other records assembled 
under this subsection for any other purpose 
other than as provided for under this section. 
‘‘(B) 
NO
NATIONAL
IDENTIFICATION 
CARD.—Nothing in this section shall be con-
strued to authorize, directly or indirectly, the 
issuance or use of national identification cards 
or the establishment of a national identification 
card. 
‘‘(10) REMEDIES.—If an individual alleges that 
the individual would not have been dismissed from 
a job but for an error of the verification mechanism, 
the individual may seek compensation only through 
the mechanism of the Federal Tort Claims Act, and 
injunctive relief to correct such error. No class ac-
tion may be brought under this paragraph.’’. 
SEC. 4. RECRUITMENT, REFERRAL, AND CONTINUATION OF 
EMPLOYMENT. 
(a) ADDITIONAL CHANGES TO RULES FOR RECRUIT-
MENT, REFERRAL, AND CONTINUATION
OF EMPLOY-
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MENT.—Section 274A(a) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(a)) is amended— 
(1) in paragraph (1)(A), by striking ‘‘for a fee’’; 
(2) in paragraph (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 paragraph (2), by striking ‘‘after hiring 
an alien for employment in accordance with para-
graph (1),’’ and inserting ‘‘after complying with 
paragraph (1),’’; and 
(4) in paragraph (3), by striking ‘‘hiring,’’ and 
inserting ‘‘hiring, employing,’’ each place it appears. 
(b) DEFINITION.—Section 274A(h) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a(h)) is amended 
by adding at the end the following: 
‘‘(4) DEFINITION OF RECRUIT OR REFER.—As 
used in this section, the term ‘refer’ means the act 
of sending or directing a person or transmitting doc-
umentation or information to another, directly or in-
directly, with the intent of obtaining employment in 
the United States for such person. Only persons or 
entities referring for remuneration (whether on a re-
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after the date of the enactment of this Act, except that 
the amendments made by subsection (a) shall take effect 
6 months after the date of the enactment of this Act inso-
far as such amendments relate to continuation of employ-
ment. 
SEC. 5. GOOD FAITH DEFENSE. 
Section 274A(a)(3) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(a)(3)) is amended to read as 
follows: 
‘‘(3) GOOD FAITH DEFENSE.— 
‘‘(A) DEFENSE.—An employer (or person 
or entity that hires, employs, recruits or refers 
for fee, or is otherwise obligated to comply with 
this section) who establishes that it has com-
plied in good faith with the requirements of 
subsection (b)— 
‘‘(i) shall not be liable to a job appli-
cant, an employee, the Federal Govern-
ment, or a State or local government, 
under Federal, State, or local criminal or 
civil law for any employment-related action 
taken with respect to a job applicant or 
employee in good-faith reliance on informa-
tion provided through the system estab-
lished under subsection (d); and 
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‘‘(ii) has established compliance with 
its obligations under subparagraphs (A) 
and (B) of paragraph (1) and subsection 
(b) absent a showing by the Secretary of 
Homeland Security, by clear and con-
vincing evidence, that the employer had 
knowledge that an employee is an unau-
thorized alien. 
‘‘(B) FAILURE
TO
SEEK
AND
OBTAIN 
VERIFICATION.—Subject to the effective dates 
and other deadlines applicable under subsection 
(b), in the case of a person or entity in the 
United States that hires, or continues to em-
ploy, an individual, or recruits or refers an indi-
vidual for employment, the following require-
ments apply: 
‘‘(i) 
FAILURE
TO
SEEK 
VERIFICATION.— 
‘‘(I) IN GENERAL.—If the person 
or entity has not made an inquiry, 
under 
the 
mechanism 
established 
under subsection (d) and in accord-
ance with the timeframes established 
under 
subsection 
(b), 
seeking 
verification of the identity and work 
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eligibility of the individual, the de-
fense under subparagraph (A) shall 
not be considered to apply with re-
spect to any employment, except as 
provided in subclause (II). 
‘‘(II) SPECIAL RULE FOR FAIL-
URE OF VERIFICATION MECHANISM.— 
If such a person or entity in good 
faith attempts to make an inquiry in 
order to qualify for the defense under 
subparagraph (A) and the verification 
mechanism has registered that not all 
inquiries were responded to during the 
relevant time, the person or entity can 
make an inquiry until the end of the 
first subsequent working day in which 
the verification mechanism registers 
no nonresponses and qualify for such 
defense. 
‘‘(ii) 
FAILURE
TO
OBTAIN 
VERIFICATION.—If the person or entity 
has made the inquiry described in clause 
(i)(I) but has not received an appropriate 
verification of such identity and work eligi-
bility under such mechanism within the 
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time period specified under subsection 
(d)(2) after the time the verification in-
quiry was received, the defense under sub-
paragraph (A) shall not be considered to 
apply with respect to any employment after 
the end of such time period.’’. 
SEC. 6. PREEMPTION. 
Section 274A(h)(2) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(h)(2)) is amended to read as 
follows: 
‘‘(2) PREEMPTION.—The provisions of this sec-
tion preempt any State or local law, ordinance, pol-
icy, or rule, including any criminal or civil fine or 
penalty structure, insofar as they may now or here-
after relate to the hiring, continued employment, or 
status verification for employment eligibility pur-
poses, of unauthorized aliens. A State, locality, mu-
nicipality, or political subdivision may exercise its 
authority over business licensing and similar laws as 
a penalty for failure to use the verification system 
described in subsection (d) to verify employment eli-
gibility when and as required under subsection (b).’’. 
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SEC. 7. REPEAL. 
(a) IN GENERAL.—Subtitle A of title IV of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1234a note) is repealed. 
(b) REFERENCES.—Any reference in any Federal 
law, Executive order, rule, regulation, or delegation of au-
thority, or any document of, or pertaining to, the Depart-
ment of Homeland Security or the Social Security Admin-
istration, to the employment eligibility confirmation sys-
tem established under section 404 of the Illegal Immigra-
tion Reform and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note) is deemed to refer to the employ-
ment eligibility confirmation system established under sec-
tion 274A(d) of the Immigration and Nationality Act, as 
amended by section 3 of this Act. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date that is 36 months after the date of the enact-
ment of this Act. 
SEC. 8. PENALTIES. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (e)(4)— 
(A) in subparagraph (A), in the matter be-
fore clause (i), by inserting ‘‘, subject to para-
graph (10),’’ after ‘‘in an amount’’; 
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(B) in subparagraph (A)(i), by striking 
‘‘not less than $250 and not more than 
$2,000’’ and inserting ‘‘not less than $2,500 
and not more than $5,000’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘not less than $2,000 and not more than 
$5,000’’ and inserting ‘‘not less than $5,000 
and not more than $10,000’’; 
(D) in subparagraph (A)(iii), by striking 
‘‘not less than $3,000 and not more than 
$10,000’’ and inserting ‘‘not less than $10,000 
and not more than $25,000’’; 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) in the paragraph heading, strike ‘‘PA-
PERWORK’’; 
(B) by inserting ‘‘, subject to paragraphs 
(10) through (12),’’ after ‘‘in an amount’’; 
(C) by striking ‘‘$100’’ and inserting 
‘‘$1,000’’; 
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(D) by striking ‘‘$1,000’’ and inserting 
‘‘$25,000’’; 
(E) by adding at the end the following: 
‘‘Failure by a person or entity to utilize the em-
ployment eligibility verification system as re-
quired 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: 
‘‘(10) EXEMPTION FROM PENALTY FOR GOOD 
FAITH VIOLATION.—In the case of imposition of a 
civil penalty under paragraph (4)(A) with respect to 
a violation of subsection (a)(1)(A) or (a)(2) for hir-
ing or continuation of employment or recruitment or 
referral by person or entity and in the case of impo-
sition of a civil penalty under paragraph (5) for a 
violation of subsection (a)(1)(B) for hiring or re-
cruitment or referral by a person or entity, the pen-
alty otherwise imposed may be waived or reduced if 
the violator establishes that the violator acted in 
good faith. 
‘‘(11) AUTHORITY TO DEBAR EMPLOYERS FOR 
CERTAIN VIOLATIONS.— 
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‘‘(A) IN GENERAL.—If a person or entity 
is determined by the Secretary of Homeland Se-
curity to be a repeat violator of paragraph 
(1)(A) or (2) of subsection (a), or is convicted 
of a crime under this section, such person or 
entity may be considered for debarment from 
the receipt of Federal contracts, grants, or co-
operative agreements in accordance with the de-
barment standards and pursuant to the debar-
ment procedures set forth in the Federal Acqui-
sition Regulation. 
‘‘(B) DOES NOT HAVE CONTRACT, GRANT, 
AGREEMENT.—If the Secretary of Homeland 
Security or the Attorney General wishes to have 
a person or entity considered for debarment in 
accordance with this paragraph, and such an 
person or entity does not hold a Federal con-
tract, grant or cooperative agreement, the Sec-
retary or Attorney General shall refer the mat-
ter to the Administrator of General Services to 
determine whether to list the person or entity 
on the List of Parties Excluded from Federal 
Procurement, and if so, for what duration and 
under what scope. 
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‘‘(C) HAS
CONTRACT, 
GRANT, 
AGREE-
MENT.—If the Secretary of Homeland Security 
or the Attorney General wishes to have a per-
son or entity considered for debarment in ac-
cordance with this paragraph, and such person 
or entity holds a Federal contract, grant or co-
operative agreement, the Secretary or Attorney 
General shall advise all agencies or departments 
holding a contract, grant, or cooperative agree-
ment with the person or entity of the Govern-
ment’s interest in having the person or entity 
considered for debarment, and after soliciting 
and considering the views of all such agencies 
and departments, the Secretary or Attorney 
General may refer the matter to any appro-
priate lead agency to determine whether to list 
the person or entity on the List of Parties Ex-
cluded from Federal Procurement, and if so, for 
what duration and under what scope. 
‘‘(D) REVIEW.—Any decision to debar a 
person or entity under in accordance with this 
paragraph shall be reviewable pursuant to part 
9.4 of the Federal Acquisition Regulation.’’; 
(4) by amending paragraph (1) of subsection (f) 
to read as follows: 
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‘‘(1) CRIMINAL PENALTY.—Any person or enti-
ty which engages in a pattern or practice of viola-
tions of subsection (a)(1) or (2) shall be fined not 
more than $15,000 for each unauthorized alien with 
respect to which such a violation occurs, imprisoned 
for not less than one year and not more than 10 
years, or both, notwithstanding the provisions of any 
other Federal law relating to fine levels.’’; and 
(5) in subsection (f)(2), by striking ‘‘Attorney 
General’’ each place it appears and inserting ‘‘Sec-
retary of Homeland Security’’. 
SEC. 9. PROTECTION OF SOCIAL SECURITY ADMINISTRA-
TION PROGRAMS. 
(a) FUNDING UNDER AGREEMENT.—Effective for 
fiscal years beginning on or after October 1, 2012, the 
Commissioner of Social Security and the Secretary of 
Homeland Security shall enter into and maintain an 
agreement which shall— 
(1) provide funds to the Commissioner for the 
full costs of the responsibilities of the Commissioner 
under section 274A(d) of the Immigration and Na-
tionality Act (8 U.S.C. 1324a(d)), as amended by 
section 3 of this Act, including (but not limited 
to)— 
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(A) acquiring, installing, and maintaining 
technological equipment and systems necessary 
for the fulfillment of the responsibilities of the 
Commissioner under such section 274A(d), but 
only that portion of such costs that are attrib-
utable exclusively to such responsibilities; and 
(B) responding to individuals who contest 
a tentative nonconfirmation provided by the em-
ployment eligibility verification system estab-
lished under such section; 
(2) provide such funds quarterly in advance of 
the applicable quarter based on estimating method-
ology agreed to by the Commissioner and the Sec-
retary (except in such instances where the delayed 
enactment of an annual appropriation may preclude 
such quarterly payments); and 
(3) require an annual accounting and reconcili-
ation of the actual costs incurred and the funds pro-
vided under the agreement, which shall be reviewed 
by the Office of Inspector General of the Social Se-
curity Administration and the Department of Home-
land Security. 
(b) CONTINUATION OF EMPLOYMENT VERIFICATION 
IN ABSENCE OF TIMELY AGREEMENT.—In any case in 
which the agreement required under subsection (a) for any 
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