MS Employment Protection Act; revise penalties for violations of.

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To: Judiciary A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Hall

HOUSE BILL NO. 899

AN ACT TO AMEND SECTION 71-11-3, MISSISSIPPI CODE OF 1972, TO 1
REVISE THE PENALTIES FOR VIOLATIONS OF THE MISSISSIPPI EMPLOYMENT 2
PROTECTION ACT TO INCLUDE ADMINISTRATIVE DISSOLUTION OR REVOCATION 3
OF THE OFFENDING EMPLOYER; TO PROVIDE THAT THE DEPARTMENT OF 4
EMPLOYMENT SECURITY, DEPARTMENT OF REVENUE, AND SECRETARY OF STATE 5
MAY PROMULGATE RULES AND REGULATIONS IMPLEMENTING ENFORCEMENT; TO 6
PROVIDE CIVIL PENALTIES ENFORCEABLE BY THE ATTORNEY GENERAL; TO 7
AMEND SECTIONS 79-4-14.20, 79-4-15.30, 79-11-347, 79-29-821 AND 8
79-29-1021, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS 9
OF THIS ACT; AND FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. Section 71-11-3, Mississippi Code of 1972, is 12
amended as follows: 13
71-11-3. (1) This chapter shall be known as the 14
"Mississippi Employment Protection Act." 15
(2) The provisions of this section shall be enforced without 16
regard to race, gender, religion, ethnicity or national origin. 17
(3) For the purpose of this section only, the following 18
words shall have the meanings ascribed herein unless the content 19
clearly states otherwise: 20
(a) "Employer" is any person or business that is 21
required by federal or state law to issue a United States Internal 22
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Revenue Service Form W-2 or Form 1099 to report income paid to 23
employed or contracted personnel in Mississippi. 24
(b) "Employee" is any person or entity that is hired to 25
perform work within the State of Mississippi and to whom a United 26
States Internal Revenue Service Form W-2 or Form 1099 must be 27
issued. 28
(c) "Third-party employer" is any person or company 29
that provides workers for another person or company. This 30
includes, but is not limited to, leasing companies and contract 31
employers. 32
(d) "Status verification system" means the electronic 33
verification of work authorization program of the Illegal 34
Immigration Reform and Immigration Responsibility Act of 1996, 35
Public Law 104-208, Division C, Section 403(a); 8 USC, Section 36
1324a, and operated by the United States Department of Homeland 37
Security, known as the E-Verify Program. 38
(e) "Unauthorized alien" means an alien as defined in 39
Section 1324a(h)(3) of Title 8 of the United States Code. 40
(f) "Public employer" means every department, agency or 41
instrumentality of the state or a political subdivision of the 42
state. 43
(g) "Subcontractor" means a subcontractor, contract 44
employee, staffing agency or any contractor regardless of its 45
tier. 46
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(4) (a) Employers in the State of Mississippi shall only 47
hire employees who are legal citizens of the United States of 48
America or are legal aliens. For purposes of this section, a 49
legal alien is an individual who was lawfully present in the 50
United States at the time of employment and for the duration of 51
employment, or was permanently residing in the United States under 52
color of law at the time of employment and for the duration of 53
employment. 54
(b) (i) Every employer shall register with and utilize 55
the status verification system to verify the federal employment 56
authorization status of all newly hired employees. 57
(ii) No contractor or subcontractor shall hire any 58
employee unless the contractor or subcontractor registers and 59
participates in the status verification system to verify the work 60
eligibility status of all newly hired employees. 61
(iii) No contractor or subcontractor who enters 62
into a contract with a public employer shall enter into such a 63
contract or subcontract unless the contractor or subcontractor 64
registers and participates in the status verification system to 65
verify information of all newly hired employees. 66
(c) The provisions of this section shall not apply to 67
any contracts entered into on or before July 1, 2008. 68
(d) It shall be a discriminatory practice for an 69
employer to discharge an employee working in Mississippi who is a 70
United States citizen or permanent resident alien while retaining 71
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an employee who the employing entity knows, or reasonably should 72
have known, is an unauthorized alien hired after July 1, 2008, and 73
who is working in Mississippi in a job category that requires 74
equal skill, effort and responsibility, and which is performed 75
under similar working conditions, as defined by 29 USC, Section 76
206(d)(1), as the job category held by the discharged employee. 77
(e) An employing entity which, on the date of the 78
discharge in question, was enrolled in and used the status 79
verification system to verify the employment eligibility of its 80
employees in Mississippi hired after July 1, 2008, shall be exempt 81
from liability, investigation or suit arising from any action 82
under this section. 83
* * * 84
(5) Any employer that complies with the requirements of this 85
section shall be held harmless by the Mississippi Department of 86
Employment Security, provided the employer is not directly 87
involved in the creation of any false documents, and provided that 88
the employer did not knowingly and willfully accept false 89
documents from the employee. 90
(6) (a) All third-party employers that conduct business in 91
Mississippi shall register to do business in Mississippi with the 92
Mississippi Department of Employment Security before placing 93
employees into the workforce in Mississippi. 94
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(b) Third-party employers shall provide proof of 95
registration and any participation in the status verification 96
system to any Mississippi employer with whom they do business. 97
(7) (a) State of Mississippi agencies and political 98
subdivisions, public contractors and public subcontractors and 99
private employers with two hundred fifty (250) or more employees 100
shall meet verification requirements not later than July 1, 2008. 101
(b) Employers with at least one hundred (100) but less 102
than two hundred fifty (250) employees shall meet verification 103
requirements not later than July 1, 2009. 104
(c) Employers with at least thirty (30) but less than 105
one hundred (100) employees shall meet verification requirements 106
not later than July 1, 2010. 107
(d) All employers shall meet verification requirements 108
not later than July 1, 2011. 109
(e) (i) Any employer violating the provisions of this 110
section shall be subject to the cancellation of any state or 111
public contract, resulting in ineligibility for any state or 112
public contract for up to three (3) years, administrative 113
dissolution or revocation of the offending employer by the 114
Secretary of State, the loss of any license, permit, certificate 115
or other document granted to the employer by any agency, 116
department or government entity in the State of Mississippi for 117
the right to do business in Mississippi for up to one (1) year, or 118
both. 119
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(ii) The contractor or employer shall be liable 120
for any additional costs incurred by the agencies and institutions 121
of the State of Mississippi, or any of its political subdivisions, 122
because of the cancellation of the contract or the loss of any 123
license or permit to do business in the state. 124
(iii) Any person or entity penalized under this 125
section shall have the right to appeal to the appropriate entity 126
bringing charges or to the circuit court of competent 127
jurisdiction. 128
(f) The Attorney General may investigate alleged 129
violations of this section. If, after investigating an alleged 130
violation, the Attorney General finds that an employer has 131
violated this section, the Attorney General may bring an action to 132
impose a civil penalty and to seek other relief, including 133
injunctive relief, as the court deems appropriate against the 134
employer. The civil penalty shall not exceed Ten Thousand Dollars 135
($10,000.00) per violation and shall be deposited in the State 136
General Fund, unallocated. Each unauthorized alien who is hired 137
or employed by an employer shall constitute a separate violation 138
of this section. 139
(g) The Attorney General may issue subpoenas, require 140
the production of relevant documents, administer oaths, conduct 141
hearings, and do all things necessary in the course of 142
investigating, determining and adjudicating an alleged violation 143
of this section. The remedies, duties, prohibitions and penalties 144
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set forth under this section shall not be exclusive and shall be 145
in addition to all other causes of action, remedies and penalties 146
provided by law. 147
(h) (i) In addition to the penalties considered in 148
this subsection (7), the Department of Employment Security, * * * 149
Department of Revenue and Secretary of State * * * shall have the 150
authority to seek additional penalties specific to their agencies 151
under this section * * * for noncompliance against any employer or 152
employee. The Department of Employment Security, Department of 153
Revenue and the Secretary of State may promulgate rules and 154
regulations implementing enforcement pursuant to this section. 155
(ii) The Department of Employment Security, 156
Department of Revenue, Secretary of State and Attorney General 157
shall have the authority to adopt, amend or rescind such 158
regulations as they deem necessary or suitable to administer their 159
duties under this section. 160
(8) (a) There shall be no liability under this section in 161
the following circumstances: 162
(i) An employer who hires an employee through a 163
state or federal work program that requires verification of the 164
employee's social security number and provides for verification of 165
the employee's lawful presence in the United States in an 166
employment-authorized immigration status; 167
(ii) Any candidate for employment referred by the 168
Mississippi Department of Employment Security, if the Mississippi 169
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Department of Employment Security has verified the social security 170
number and provides for verification of the candidate's lawful 171
presence in the United States in an employment-authorized 172
immigration status; or 173
(iii) Individual homeowners who hire workers on 174
their private property for noncommercial purposes, unless required 175
by federal law to do so. 176
(b) (i) Compliance with the sections of this statute 177
shall not exempt the employer from regulations and requirements 178
related to any federal laws or procedures related to employers. 179
(ii) This section shall not be construed as an 180
attempt to preempt federal law. 181
(c) (i) It shall be a felony for any person to accept 182
or perform employment for compensation knowing or in reckless 183
disregard that the person is an unauthorized alien with respect to 184
employment during the period in which the unauthorized employment 185
occurred. Upon conviction, a violator shall be subject to 186
imprisonment in the custody of the Department of Corrections for 187
not less than one (1) year nor more than five (5) years, a fine of 188
not less than One Thousand Dollars ($1,000.00) nor more than Ten 189
Thousand Dollars ($10,000.00), or both. The Attorney General or 190
any district attorney shall be authorized to enforce the criminal 191
cause of action pursuant to this subsection (c). 192
(ii) For purposes of determining bail for persons 193
who are charged under this section, it shall be a rebuttable 194
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presumption that a defendant who has entered and remains in the 195
United States unlawfully is deemed at risk of flight for purposes 196
of bail determination. 197
SECTION 2. Section 79-4-14.20, Mississippi Code of 1972, is 198
amended as follows: 199
79-4-14.20. The Secretary of State may commence a proceeding 200
under Section 79-4-14.21 to administratively dissolve a 201
corporation if: 202
(1) The corporation does not pay within sixty (60) days 203
after they are due any franchise taxes or penalties imposed by 204
Section 79-4-1.01 et seq., or other law; 205
(2) The corporation does not deliver its annual report 206
to the Secretary of State within sixty (60) days after it is due; 207
(3) The corporation is without a registered agent in 208
this state for sixty (60) days or more; 209
(4) The corporation does not notify the Secretary of 210
State within sixty (60) days that its registered agent has been 211
changed, or that its registered agent has resigned; 212
(5) The corporation's period of duration stated in its 213
articles of incorporation expires; * * * 214
(6) An incorporator, director, officer or agent of the 215
corporation signed a document he or she knew was false in any 216
material respect with intent that the document be delivered to the 217
Secretary of State for filing * * *; or 218
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(7) The corporation is in violation of the Mississippi 219
Employment Protection Act (Section 71-11-3). 220
SECTION 3. Section 79-4-15.30, Mississippi Code of 1972, is 221
amended as follows: 222
79-4-15.30. The Secretary of State may commence a proceeding 223
under Section 79-4-15.31 to revoke the certificate of authority of 224
a foreign corporation authorized to transact business in this 225
state if: 226
(1) The foreign corporation does not deliver its annual 227
report to the Secretary of State within sixty (60) days after it 228
is due; 229
(2) The foreign corporation does not pay within sixty 230
(60) days after they are due any franchise taxes or penalties 231
imposed by Section 79-4-1.01 et seq., or other law; 232
(3) The foreign corporation is without a registered 233
agent in this state for sixty (60) days or more; 234
(4) The foreign corporation does not inform the 235
Secretary of State by an appropriate filing that its registered 236
agent has changed or that its registered agent has resigned, 237
within sixty (60) days of the change or resignation; 238
(5) An incorporator, director, officer or agent of the 239
foreign corporation signed a document he knew was false in any 240
material respect with intent that the document be delivered to the 241
Secretary of State for filing; 242
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(6) The Secretary of State receives a duly 243
authenticated certificate from the Secretary of State or other 244
official having custody of corporate records in the state or 245
country under whose law the foreign corporation is incorporated 246
stating that it has been dissolved or disappeared as the result of 247
a merger * * *; or 248
(7) The foreign corporation is in violation of the 249
Mississippi Employment Protection Act (Section 71-11-3). 250
INSERT: 251
SECTION 4. Section 79-11-347, Mississippi Code of 1972, is 252
amended as follows: 253
79-11-347. The Secretary of State may commence a proceeding 254
under Section 79-11-349 to administratively dissolve a corporation 255
if: 256
(a) The corporation does not pay within sixty (60) days 257
after they are due any taxes or penalties imposed by Section 258
79-11-101 et seq. or other law; 259
(b) The corporation does not deliver the required 260
annual report to the Secretary of State within sixty (60) days 261
after it is due; 262
(c) The corporation is without a registered agent in 263
this state for sixty (60) days or more; 264
(d) The corporation does not notify the Secretary of 265
State within one hundred twenty (120) days that its registered 266
agent has been changed or that its registered agent has resigned; 267
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(e) The corporation's period of duration, if any, 268
stated in its articles of incorporation expires; 269
(f) The corporation fails to report within the time 270
period specified in Section 79-11-405 the suspension or revocation 271
of its tax-exempt status under Section 501(c)(3) of the Internal 272
Revenue Code; * * * 273
(g) An incorporator, director, officer or agent of the 274
corporation signed a document he knew was false in any material 275
respect with intent that the document be delivered to the 276
Secretary of State for filing * * *; or 277
(h) The corporation is in violation of the Mississippi 278
Employment Protection Act (Section 71-11-3). 279
SECTION 5. Section 79-29-821, Mississippi Code of 1972, is 280
amended as follows: 281
79-29-821. The Secretary of State may commence a proceeding 282
under Section 79-29-823 to administratively dissolve a limited 283
liability company if: 284
(a) The limited liability company does not pay within 285
sixty (60) days after they are due any fees imposed by this 286
chapter or other law; 287
(b) The limited liability company does not deliver its 288
annual report to the Secretary of State within sixty (60) days 289
after it is due; 290
(c) The limited liability company is without a 291
registered agent in this state for sixty (60) days or more; 292
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(d) The limited liability company does not notify the 293
Secretary of State within sixty (60) days that its registered 294
agent has been changed or that its registered agent has 295
resigned; * * * 296
(e) The Department of Revenue notifies the Secretary of 297
State that the limited liability company is delinquent in any 298
payments or tax owed by the limited liability company to the State 299
of Mississippi; * * * 300
(f) A misrepresentation has been made of any material 301
matter in any application, report, affidavit, or other record 302
submitted by the limited liability company to the Secretary of 303
State pursuant to this chapter * * *; or 304
(g) The limited liability company is in violation of 305
the Mississippi Employment Protection Act (Section 71-11-3). 306
SECTION 6. Section 79-29-1021, Mississippi Code of 1972, is 307
amended as follows: 308
79-29-1021. (1) The Secretary of State may commence a 309
proceeding under Section 79-29-1023 to administratively revoke the 310
registration of a foreign limited liability company authorized to 311
transact business in this state if: 312
(a) The foreign limited liability company does not pay 313
within sixty (60) days after they are due any fees imposed by this 314
chapter or other law; 315
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(b) The foreign limited liability company does not 316
deliver its annual report to the Secretary of State within sixty 317
(60) days after it is due; 318
(c) The foreign limited liability company is without a 319
registered agent in this state for sixty (60) days or more; 320
(d) The foreign limited liability company does not 321
notify the Secretary of State within sixty (60) days that its 322
registered agent has been changed or that its registered agent has 323
resigned; 324
(e) The Secretary of State receives a duly 325
authenticated certificate from the Secretary of State or other 326
public official having custody of corporate records in the state 327
or country under whose law the foreign limited liability company 328
is organized stating that it has been dissolved or ceased to exist 329
as the result of a merger; 330
(f) The Department of Revenue notifies the Secretary of 331
State that the limited liability company is delinquent in any 332
payments or tax owed by the limited liability company to the State 333
of Mississippi; * * * 334
(g) A misrepresentation has been made of any material 335
matter in any application, report, affidavit, or other record 336
submitted by the foreign limited liability company to the 337
Secretary of State pursuant to this chapter * * *; or 338
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ST: MS Employment Protection Act; revise
penalties for violations of.
(h) The foreign limited liability company is in 339
violation of the Mississippi Employment Protection Act (Section 340
71-11-3). 341
(2) The Secretary of State may not administratively revoke a 342
registration of a foreign limited liability company unless the 343
Secretary of State sends the foreign limited liability company 344
notice of the administrative revocation under Section 79-29-1023, 345
at least sixty (60) days before its effective date, by a record 346
addressed to its registered agent, or to the foreign limited 347
liability company if the foreign limited liability company fails 348
to appoint and maintain a proper agent in this state. The notice 349
must specify the cause for the administrative revocation of the 350
registration. The authority of the foreign limited liability 351
company to transact business in this state ceases on the effective 352
date of the administrative revocation unless the foreign limited 353
liability company cures the failure before that date. 354
SECTION 7. This act shall take effect and be in force from 355
and after July 1, 2026. 356