Make E-Verify Great Again.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 1214
Committee Substitute Favorable 6/9/26
Committee Substitute #2 Favorable 6/10/26

Short Title: Make E-Verify Great Again. (Public)
Sponsors:
Referred to:
May 5, 2026
*H1214-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE STATE AND LOCAL GOVERNMENT EMPLOYERS TO COMPLY 2
WITH ARTICLE 2 OF CH APTER 64 OF THE GENE RAL STATUTES, TO CRE ATE A 3
GOOD-FAITH SAFE HARBOR FOR EMPLOYERS WHO UNKNOWINGLY RECEIVE 4
FRAUDULENT DOCUMENTA TION RELATED TO THE FEDERAL E -VERIFY 5
PROGRAM, TO ALLOW THE COMMISSIONER OF LABOR TO CONDUCT RANDOM 6
COMPLIANCE CHECKS RE LATED TO E -VERIFY, T O ALLOW EMPLOYERS TO 7
CURE ALLEGED VIOLATIONS OF E-VERIFY REQUIREMENTS, TO INCREASE THE 8
CIVIL PENALTIES FOR EMPLOYERS WHO FAIL T O COMPLY W ITH E -VERIFY 9
REQUIREMENTS, TO PRO TECT EMPLOYEES FROM RETALIATION FOR 10
GOOD-FAITH REPORTS O F SUSPECTED VIOLATIO NS OF E -VERIFY 11
REQUIREMENTS, AND TO APPROPRIATE FUNDS T O THE DEPARTMENT OF 12
LABOR FOR THE ENFORCEMENT OF THIS ACT. 13
The General Assembly of North Carolina enacts: 14
SECTION 1.(a) G.S. 64-25 reads as rewritten: 15
"§ 64-25. Definitions. 16
The following definitions apply in this Article: 17
(1) Commissioner. – The North Carolina Commissioner of Labor. 18
(2) Employ. – Hire an employee. 19
(3) Employee. – Any individual who provides services or labor for an employer 20
in this State for wages or other remuneration. The term does not include an 21
individual whose term of employment is less than nine months in a calendar 22
year. 23
(4) Employer. – Any person, business entity, or other organization that transacts 24
business in this State and that employs 25 or more employees in this State. 25
This term does not include State agencies, counties, municipalities, or other 26
governmental bodies.The term also includes any entity required to participate 27
in E-Verify pursuant to any of the following: 28
a. State and local entities pursuant to G.S. 126-7.1(i). 29
b. Counties pursuant to G.S. 153A-99.1. 30
c. Municipalities pursuant to G.S. 160A-169.1. 31
(5) E-Verify. – The federal E -Verify program operated by the United States 32
Department of Homeland Security and other federal agencies, or any 33
successor or equivalent program used to verify the work authorization of 34
newly hired employees pursuant to federal law. 35
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(6) Unauthorized alien. – As defined in 8 U.S.C. § 1324a(h)(3)." 1
SECTION 1.(b) G.S. 64-26 reads as rewritten: 2
"§ 64-26. Verification of employee work authorization. 3
(a) Employers Must Use E-Verify. – Each employer, after hiring an employee to work in 4
the United States, shall verify the work authorization of the employee through E-Verify. 5
(b) Employer Preservation of E-Verify Forms. – Each employer shall retain the record of 6
the verification of work authorization required by this section while the employee is employed 7
and for one year thereafter. 8
(c) Repealed by Session Laws 2013-418, s. 2(g), effective September 4, 2013. 9
(d) Good-Faith Compliance. – An employer shall be deemed in good -faith compliance 10
with this Article if the employer timely enrolls in and utilizes E -Verify as required by law, 11
properly completes and retains all required forms and documentation, and does not knowingly or 12
with reckless disregard accept fraudulent documentation. An employer acting in good -faith 13
compliance with this Article shall not be su bject to civil penalties under this Article solely 14
because an employee submitted fraudulent information or documentation that could not 15
reasonably have been detected." 16
SECTION 1.(c) G.S. 64-29 reads as rewritten: 17
"§ 64-29. Investigation of complaints.complaints; compliance checks. 18
(a) Investigation. – Upon receipt of a complaint filed in accordance with G.S. 64-28, the 19
Commissioner shall investigate whether a violation of G.S. 64-26 or G.S. 143-133.3 has in fact 20
occurred. 21
(a1) Random Compliance Checks. – The Commissioner may conduct random compliance 22
checks of employers to determine compliance with G.S. 64-26 and G.S. 143-133.3. Random 23
compliance checks shall be conducted in a neutral and nondiscriminatory manner based on a 24
randomized sample of all employers registered with the Secretary of State, weighted by size and 25
industry. Upon selecting an employer for a random compliance check, the Commissioner shall 26
provide written notice to the employer . The written notice shall include any request for 27
employment records from the employer, provided that any employment records requested under 28
this subsection shall be limited to the documentation listed in subsection (e) of this section. The 29
employer shall provide the Commissioner with the requested employment records within 30 30
calendar days of receiving the notice of the random compliance check. No employer shall be 31
subject to a random compliance check more than once per calendar year. 32
(b) Certain Complaints Shall Not Be Investigated. – The Commissioner shall not 33
investigate complaints that are based solely on race, religion, gender, ethnicity, or national origin. 34
(c) Assistance by Law Enforcement. – The Commissioner may request that the State 35
Bureau of Investigation assist in investigating a complaint under this section. 36
(d) Subpoena for Production of Documents. – The Commissioner may issue a subpoena 37
for production of employment records that relate to the recruitment, hiring, employment, or 38
termination policies, p ractices, or acts of employment as part of the investigation of a valid 39
complaint an investigation or compliance check initiated under this section. 40
(e) Compliance Checks Limited to Documentation. – Any compliance check conducted 41
pursuant to this section shall be limited to the review of records, documents, reports, 42
certifications, or other paperwork required by law to be maintained or submitted by the regulated 43
person or entity. No provision of this section shall be construed to authorize the State, any agency, 44
department, officer, employee, or contractor thereof to enter upon, inspect, access, or conduct a 45
physical examination of private property without the consent of the property owner or lawful 46
occupant, except as otherwise expressly authorized by fede ral law, State law, or a valid 47
administrative or judicial warrant. A request for documents or records under this section shall 48
not, by itself, create or imply a right of physical entry onto private property." 49
SECTION 1.(d) G.S. 64-30 reads as rewritten: 50
"§ 64-30. Actions to be taken; hearing. 51
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House Bill 1214-Third Edition Page 3
(a) If, after an investigation, investigation or compliance check, the Commissioner 1
determines that the complaint an alleged violation is not false or frivolous:frivolous, then the 2
following shall occur: 3
(1) If the alleged violation is of G.S. 64-26: 4
a. The Commissioner shall hold a hearing to determine if a violation of 5
G.S. 64-26 has occurred and, if appropriate, impose civil penalties in 6
accordance with the provisions of this Article. 7
a1. If the employer is e ntitled to the cure period in accordance with 8
subsection (b) of this section, prior to imposing civil penalties pursuant 9
to G.S. 64-31, the Commissioner shall issue a written notice of 10
noncompliance to the employer. The employer shall have 30 calendar 11
days from receipt of the notice to cure the alleged violation by 12
enrolling in E -Verify, completing required verifications, and 13
otherwise complying with G.S. 64-26. If the employer cures the 14
alleged violation within the 30-day cure period and submits proof o f 15
compliance to the Commissioner, the Commissioner shall not order 16
the employer to pay a civil penalty under G.S. 64-31. 17
a2. If the employer fails to cure the alleged violation within 30 days, or if 18
the employer is not e ntitled to the cure period in accordance with 19
subsection (b) of this section, the Commissioner shall hold a hearing 20
to determine if a violation of G.S. 64-26 has occurred and, if 21
appropriate, impose civil penalties in accordance wit h the provisions 22
of this Article. 23
b. If, during the course of the hearing required by sub-subdivision a. 24
sub-subdivision a 2. of this subdivision of this section, the 25
Commissioner concludes that there is a reasonable likelihood that an 26
employee is an unauthorized alien, the Commissioner sha ll notify the 27
following entities of the possible presence of an unauthorized alien: 28
1. United States Immigration and Customs Enforcement. 29
2. Local law enforcement agencies. 30
(2) If the alleged violation is of G.S. 143-133.3, the Commissioner shall hold a 31
hearing to determine if a violation of the applicable statute has occurred and, 32
if appropriate, shall take action under G.S. 64-33.1. 33
(b) An employer is entitled to the cure period under subdivision (1) of subsection (a) of 34
this section if the Commissioner has not previously issued an order against the employer pursuant 35
to G.S. 64-31 at the time of the alleged violation , regardless of whether the employer has 36
previously utilized the cure period under subdivision (1) of subsection (a) of this section." 37
SECTION 1.(e) G.S. 64-31 reads as rewritten: 38
"§ 64-31. Consequences of first violation of G.S. 64-26. 39
(a) Affidavit Must Be Filed. – For a first violation of G.S. 64-26, the Commissioner shall 40
order the employer to file a signed sworn affidavit with the Commissioner within three business 41
days after the order issued pursuant to this subsection is issued. The affidavit shall state with 42
specificity that the employer has, after consultation with the employee, requested a verification 43
of work authorization through E-Verify. 44
(b) Effect of Failure to File Affidavit. – If an employer fails to timely file an affidavit 45
required by subsection (a) of this section or by G.S. 64-32 or G.S. 64-33, the Commissioner shall 46
order the employer to pay a civil penalty of ten thousand dollars ($10,000). 47
(c) Applicability of Section. – This section applies to a violation of G.S. 64-26 in either 48
of the following circumstances: 49
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(1) At the time of the violation, t he Commissioner has not previously issued an 1
order against the employer pursuant to this section and the employer fai ls to 2
cure the violation within the 30-day cure period provided in G.S. 64-30. 3
(2) At the time of the violation, the Commissioner has previously issued an order 4
against the employer pursuant to this section, but the previous order was 5
issued more than five years before the current violation . However, t his 6
subdivision does not apply if , at the time of the violation , the Commissioner 7
has previously issued an order against the employer pursuant to G.S. 64-32 or 8
G.S. 64-33; in such case, the violation shall be subject to G.S. 64-33. 9
(d) Penalty. – For a violation of G.S. 64-26 that occurs in either of the circumstances 10
listed in subsection (c) of this section , the Commissioner may order the employer to pay a civil 11
penalty of up to one thousand dollars ($1,000) for each required employee verification the 12
employer failed to make, provided that an order under this section shall not require the employer 13
to pay more than three thousand dollars ($3,000)." 14
SECTION 1.(f) G.S. 64-32 reads as rewritten: 15
"§ 64-32. Consequences of second violation of G.S. 64-26. 16
For a violation of G.S. 64-26 that occurs within five years after an order has been issued 17
pursuant to G.S. 64-31, the Commissioner shall order the measures required by G.S. 64-31(a) 18
and shall also order the employer to pay a civil penalty of one thousand dollars ($1,000), 19
regardless of the number of required employee verifications the employer failed to make. two 20
thousand dollars ($2,000) for each required employee verification the employer failed to make, 21
provided that an order under this section shall not require the employer to p ay more than ten 22
thousand dollars ($10,000)." 23
SECTION 1.(g) G.S. 64-33 reads as rewritten: 24
"§ 64-33. Consequences of third or subsequent violation of G.S. 64-26. 25
For a violation of G.S. 64-26 that occurs after an order has been issued pursuant to 26
G.S. 64-32, the Commissioner shall order the measures required by G.S. 64-31(a), and shall also 27
order the employer to pay a civil penalty of two thousand dollars ($2,000) five thousand dollars 28
($5,000) for each required employee verification the employer failed t o make.make, provided 29
that an order under this section shall not requi re the employer to pay more than twenty -five 30
thousand dollars ($25,000). The Commissioner may also refer the matter to the Attorney General 31
for appropriate enforcement action." 32
SECTION 1.(h) Article 2 of Chapter 64 of the General Statutes is amended by 33
adding a new section to read: 34
"§ 64-33.2. Proceeds of civil penalties. 35
The clear proceeds of all civil penalties imposed pursuant to this Article shall be remitted to 36
the Civil Penalty and Forfeiture Fund in accordance with G.S. 115C-457.2." 37
SECTION 1.(i) G.S. 64-34 reads as rewritten: 38
"§ 64-34. Commissioner to maintain copies of orders. 39
The Commissioner shall maintain copies of orders issued pursuant to G.S. 64-31, 64-32, and 40
64-33, and shall maintain a database of the employers and business locations that have a violation 41
of G.S. 64-26 and make the orders available on the Commissioner's website. The Commissioner 42
shall also maintain records of compliance checks conducted pursuant to G.S. 64-29." 43
SECTION 1.(j) G.S. 126-7.1(i) reads as rewritten: 44
"(i) Each State agency, department, institution, university, community college, and local 45
education agency shall (i) verify, in accordance with the Basic Pilot Program administered by the 46
United States Department of Homeland Security pursuant to 8 U.S.C. § 1101, et seq, each 47
individual's legal status or authorization to work in the United States after hiring the individu al 48
as an employee to work in the United States.United States and (ii) comply with Article 2 of 49
Chapter 64 of the General Statutes." 50
SECTION 1.(k) G.S. 153A-99.1 reads as rewritten: 51
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"§ 153A-99.1. County verification of employee work authorization. 1
(a) Counties Must Use E-Verify. – Each county shall register and participate in E-Verify 2
to verify the work authorization of new employees hired to work in the United States. 3
Additionally, each county shall comply with Article 2 of Chapter 64 of the General Statutes. 4
(b) E-Verify Defined. – As used in this section, the term "E -Verify" means the federal 5
E-Verify program operated by the United States Department of Homeland Security and other 6
federal agencies, or any successor or equivalent program used to verify the work authorization 7
of newly hired employees pursuant to federal law. 8
(c) Nondiscrimination. – This section shall be enforced without regard to race, religion, 9
gender, ethnicity, or national origin." 10
SECTION 1.(l) G.S. 160A-169.1 reads as rewritten: 11
"§ 160A-169.1. Municipality verification of employee work authorization. 12
(a) Municipalities Must Use E-Verify. – Each municipality shall register and participate 13
in E-Verify to verify the work authorization of new employees hired to work in the United States. 14
Additionally, each municipality shall comply with Article 2 of Chapter 64 of the General Statutes. 15
(b) E-Verify Defined. – As used in this section, the term "E -Verify" means the federal 16
E-Verify program operated by the United States Department of Homeland Security and other 17
federal agencies, or any successor or equivalent program used to verify the work authorization 18
of newly hired employees pursuant to federal law. 19
(c) Nondiscrimination. – This section shall be enforced without regard to race, religion, 20
gender, ethnicity, or national origin." 21
SECTION 1.(m) This section becomes effective July 1, 2027, and applies to 22
violations occurring on or after that date. 23
SECTION 2.(a) G.S. 95-241 reads as rewritten: 24
"§ 95-241. Discrimination prohibited. 25
(a) No person shall discriminate or take any retaliatory action against an employee 26
because the employee in good faith does or threatens to do any of the following: 27
(1) File a claim or complaint, initiate any inquiry, investigation, inspection, 28
proceeding or other action, or testify or provide information to any person 29
with respect to any of the following: 30
a. Chapter 97 of the General Statutes. 31
b. Article 2A or Article 16 of this Chapter. 32
c. Article 2A of Chapter 74 of the General Statutes. 33
d. G.S. 95-28.1. 34
e. Article 16 of Chapter 127A of the General Statutes. 35
f. G.S. 95-28.1A. 36
g. Article 52 of Chapter 143 of the General Statutes. 37
h. Article 5F of Chapter 90 of the General Statutes. 38
i. Article 2 of Chapter 64 of the General Statutes. 39
(2) Cause any of the activities listed in subdivision (1) of this subsection to be 40
initiated on an employee's behalf. 41
(3) Exercise any right on behalf of the employee or any other employee afforded 42
by Article 2A or Article 16 of this Chapter, by Article 2A of Chapter 74 of the 43
General Statutes, or by Article 52 of Chapter 143 of the General Statutes. 44
(4) Comply with the provisions of Article 27 of Chapter 7B of the General 45
Statutes. 46
(5) Exercise rights under Chapter 50B. Actions brought under this subdivision 47
shall be in accordance with the provisions of G.S. 50B-5.5. 48
(b) It shall not be a violation of this Article for a person to discharge or take any other 49
unfavorable action with respect to an employee who has engaged in protected activity as set forth 50
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under this Article if the person pr oves by the greater weight of the evidence that it would have 1
taken the same unfavorable action in the absence of the protected activity of the employee." 2
SECTION 2.(b) This section becomes effective October 1, 2026, and applies to 3
discriminatory or retaliatory actions taken on or after that date. 4
SECTION 3.(a) There is appropriated from the General Fund to the Department of 5
Labor the sum of ninety thousand dollars ($90,000) in recurring funds for the 2026 -2027 fiscal 6
year for one full -time equivalent position to assist in the enforcement of this act. This position 7
shall be designated as an exempt policymaking position of the Commissioner of Labor, not 8
subject to the limitations under G.S. 126-5(d)(2). 9
SECTION 3.(b) This section becomes effective July 1, 2026. 10
SECTION 4. Except as otherwise provided, this act is effective when it becomes 11
law. 12