An Act prohibiting the employment of unauthorized employees; requiring hotel and lodging industry employers to verify the Social Security numbers of employees; imposing duties on the Department of Labor and Industry; and imposing penalties.

PRINTER'S NO. 946
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 905
Session of
2025
INTRODUCED BY M. MACKENZIE, BERNSTINE AND ZIMMERMAN,
MARCH 13, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 13, 2025
AN ACT
Prohibiting the employment of unauthorized employees; requiring
hotel and lodging industry employers to verify the Social
Security numbers of employees; imposing duties on the
Department of Labor and Industry; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Hotel and
Lodging Industry Employee Verification Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." An agency, department, board or commission of the
Commonwealth or of a municipality that issues a license for
purposes of operating a business in this Commonwealth.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employ." To enter into an employer-employee relationship
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with an individual or to use a contract, subcontract or exchange
with an individual to obtain labor.
"Employee." An individual who enters into an employer-
employee relationship with an employer or into a contract,
subcontract or exchange with an employer to provide labor.
"Employer." Any of the following with at least 150 guest
rooms:
(1) A hotel, motel, inn, guesthouse or other building
that holds itself out by any means, including advertising,
license, registration with any innkeeper's group, convention
listing association, travel publication or similar
association or with a government agency, as being available
to provide overnight lodging or use of facility space for
consideration to individuals seeking temporary accommodation.
(2) A place that advertises to the public at large or
any segment of the public that it will provide beds, sanitary
facilities or other space for a temporary period to members
of the public at large.
(3) A place recognized as a hostelry.
"E-Verify program." The Internet-based program administered
by the United States Department of Homeland Security and the
United States Social Security Administration that allows
employers to verify an employee's work-authorization status. The
term includes any successor program.
"License." As follows:
(1) A permit, certificate, approval, registration,
charter or similar form of authorization that is required by
law and issued by an agency for the purposes of:
(i) operating a business in this Commonwealth; or
(ii) conducting operations in the hotel and lodging
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industry.
(2) The term includes articles of incorporation and
domestic or foreign entity registrations under 15 Pa.C.S.
(relating to corporations and unincorporated associations).
(3) The term does not include a professional or
occupational license or certificate granted to an individual
to engage in a profession or trade.
"Subcontractor." A person regardless of tier, including a
staffing agency, that supplies workers to an employer under a
contract.
"Unauthorized employee." An employee who does not have the
legal right or authorization under Federal law to work in the
United States.
Section 3. Prohibited employment.
(a) Prohibition.--An employer may not knowingly employ an
unauthorized employee.
(b) Verification.--On and after the effective date of this
subsection, an employer that hires an employee shall verify the
employment eligibility of the employee through the E-Verify
program and shall keep a record of the verification for the
duration of the employee's employment or three years, whichever
is longer.
(c) Staffing agencies.--If a staffing agency supplies
workers to multiple industries, subsections (a) and (b) shall
only apply to workers supplied for the hotel and lodging
industry.
Section 4. Procedures, presumptions and defenses.
(a) Complaint form.--The department shall develop and make
available a complaint form for an individual to allege a
violation of section 3(a).
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(b) Complaint process.--
(1) An individual may submit to the department a
complaint about a violation of section 3(a) on the prescribed
complaint form.
(2) An individual who knowingly provides materially
false information on the prescribed complaint form shall be
subject to punishment under 18 Pa.C.S. § 4904 (relating to
unsworn falsification to authorities).
(3) The department may investigate complaints under this
act.
(4) Pursuant to an investigation of a complaint under
this act, the department may:
(i) Enter and inspect the place of business or place
of employment of an employer in this Commonwealth at any
reasonable time for the purpose of examining and
inspecting records of the employer that in any way relate
to compliance with this act.
(ii) Copy any or all records as the department may
deem necessary or appropriate.
(iii) Require from an employer full and accurate
statements in writing, at times that the department deems
necessary, of the work authorization verification process
for all employees in the employer's employment.
(iv) Interrogate persons for the purpose of
ascertaining whether an employer has complied with this
act.
(c) Duty to investigate.--Upon receipt of a complaint on the
prescribed complaint form alleging that an employer knowingly
employs an unauthorized employee, the department shall
investigate whether the employer has violated section 3(a) if
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all the information required to complete the form has been
provided, including the name of the individual filing the
complaint.
(d) Authority to investigate.--The department may
investigate a complaint that is not submitted on the prescribed
complaint form, including an anonymous complaint.
(e) Prohibition.--The department may not investigate a
complaint that is based solely on race, color or national
origin.
(f) Verification.--If the department investigates a
complaint, the department shall verify the work authorization of
the alleged unauthorized employee with the Federal Government
under 8 U.S.C. § 1373(c) (relating to communication between
government agencies and the Immigration and Naturalization
Service). A Commonwealth or local official may not attempt to
independently make a final determination on whether an
unauthorized employee is authorized to work in the United
States.
(g) Notification and action.--If, after an investigation,
the department determines that the alleged employee is an
unauthorized employee, the department shall do all of the
following:
(1) For a first violation, the department shall issue a
warning letter detailing the violation and informing the
employer of the provisions of this act. The following apply:
(i) Notwithstanding paragraph (2), a violation by an
employer that occurs 10 years or more after a prior
violation shall be deemed a first violation.
(ii) The department may not issue a warning letter
if the employer demonstrates that the employment
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eligibility of the unauthorized employee was verified in
good faith through the E-Verify program in accordance
with section 3(b).
(iii) After the issuance of a warning letter, the
employer shall verify in writing to the department within
10 business days that the employer has terminated the
employment of each unauthorized employee in this
Commonwealth. If the employer fails to provide the
verification, the violation shall constitute a second
violation, and the department shall make a referral to
the Attorney General in accordance with paragraph (2).
(iv) The employer may appeal the issuance of the
warning letter under the provisions of 2 Pa.C.S.
(relating to administrative law and procedure).
(2) For a second or subsequent violation, the department
shall refer the case to the Attorney General for enforcement.
The Attorney General shall bring an action against the
employer in the county where the unauthorized employee is or
was employed by the employer. The Attorney General may not
bring an action against an employer for a violation that
occurred before the effective date of this paragraph.
(h) Expedited action.--Upon docketing an action under this
section, a court shall expedite the action, including assigning
the hearing at the earliest practicable date.
(i) Determination.--In determining whether an employee is an
unauthorized employee, a court shall consider only the Federal
Government's determination under 8 U.S.C. § 1373(c). The
following apply:
(1) The Federal Government's determination shall create
a rebuttable presumption of the employee's status.
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(2) The court may take judicial notice of the Federal
Government's determination and may request the Federal
Government to provide automated or testimonial verification
under 8 U.S.C. § 1373(c).
(j) Rebuttable presumption.--Proof that the employer
verified the employment authorization of an employee through the
E-Verify program shall create a rebuttable presumption that an
employer did not knowingly employ an unauthorized employee.
(k) Affirmative defenses.--
(1) For the purposes of this section, it shall be an
affirmative defense if an employer demonstrates that the
employer has complied in good faith with 8 U.S.C. § 1324a(b)
(relating to unlawful employment of aliens). An employer
shall be considered to have complied with 8 U.S.C. §
1324a(b), notwithstanding an isolated, sporadic or accidental
technical or procedural failure to meet the requirements, if
the employer establishes a good faith attempt to comply with
8 U.S.C. § 1324a(b).
(2) An employer shall have an affirmative defense to a
violation under section 3(a) if a subcontractor or a
subcontractor responsible for a violation by another
subcontractor has knowingly employed an unauthorized
employee, provided that the contractor has done the
following:
(i) Required compliance with this act in the
contract with the subcontractor, including providing for
the termination of the contract upon court-ordered
sanctions for a violation of this act by the
subcontractor.
(ii) Obtained written verification from the
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subcontractor that the subcontractor is aware of the
provisions of this act and is responsible for compliance.
Section 5. Penalties and remedial orders.
(a) Order.--Upon a finding of a violation under section 3(a)
pursuant to an action brought by the Attorney General under this
act, a court shall order all of the following:
(1) The employer to terminate the employment of each
unauthorized employee.
(2) The employer to a three-year probationary period for
each business location where an unauthorized employee
performed work. During the probationary period, the employer:
(i) shall file quarterly reports with the department
of each new employee who is hired by the employer at the
business location where an unauthorized employee
performed work; and
(ii) may not knowingly employ an unauthorized
employee.
(3) The employer, within five business days, to verify
in writing to the department that the employer has terminated
the employment of each unauthorized employee in this
Commonwealth.
(4) Agencies to suspend each license that is held by the
employer if the employer fails to timely submit the
verification. The following apply:
(i) Each license that is suspended under this
paragraph shall remain suspended until the employer
complies.
(ii) Each license shall be reinstated immediately by
the appropriate agency upon filing the verification under
paragraph (3).
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(iii) A license that is subject to suspension under
this paragraph shall include each license that is held by
the employer specific to the business location where an
unauthorized employee performed work. If the employer
does not hold a license specific to the business location
where an unauthorized employee performed work, the court
shall order suspension of each license that is held by
the employer pertaining to operations anywhere within
this Commonwealth.
(b) Duration.--
(1) For a second violation of section 3(a), the court
may order the agency to suspend each license described under
subsection (a)(4) that is held by the employer for a period
not to exceed 30 business days.
(2) For a subsequent violation of section 3(a) or a
violation occurring during a three-year probationary period
under subsection (a)(2), the court shall order suspension for
a term not less than one year up to the permanent revocation
of each license.
(c) Factors.--In determining whether to order suspension or
the duration of a suspension, the court shall consider the
following factors:
(1) The number of unauthorized employees employed by the
employer.
(2) Any prior misconduct by the employer.
(3) The degree of harm resulting from the violation.
(4) Whether the employer made good faith efforts to
comply with any applicable requirements.
(5) The duration of the violation.
(6) The role of the directors, officers or principals of
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the employer in the violation.
(7) Any other factor that the court deems appropriate.
(d) Suspension and reinstatement fees.--Nothing in this act
shall prohibit an agency from charging an applicable fee for the
suspension or reinstatement of a license.
Section 6. Protection from retaliation.
(a) Prohibited conduct.--It shall be unlawful for an
employer to discharge, threaten or otherwise retaliate or
discriminate against an employee regarding compensation or other
terms or conditions of employment because the employee:
(1) participates in an investigation, hearing or inquiry
held by the Secretary of Labor and Industry or any other
governmental authority under this act; or
(2) reports or makes a complaint regarding the violation
of this act to an employer or governmental authority.
(b) Actions.--
(1) An employee who suffers retaliation or
discrimination in violation of this section may bring an
action in a court of common pleas in accordance with
established civil procedures of this Commonwealth.
(2) The action under paragraph (1) must be brought
within three years from the date the employee knew of the
retaliation or discrimination.
(c) Relief.--If an employee prevails in an action commenced
under this section, the employee shall be entitled to the
following relief:
(1) Reinstatement of the employee, if applicable.
(2) Restitution equal to three times the amount of the
employee's wages and fringe benefits calculated from the date
of the retaliation or discrimination.
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(3) Reasonable attorney fees and costs of the action.
(4) Any other legal and equitable relief as the court
deems appropriate.
Section 7. Immunity.
An employer that relies in good faith on the E-Verify program
to verify employment eligibility of new employees under this act
shall have no liability to an individual who is not hired or who
is discharged from employment if incorrect information has been
provided to the employer.
Section 8. Required information.
(a) Duty of employer.--Upon hiring an employee, an employer
shall provide to the employee information on the following:
(1) The limitations on employment of minors under the
act of October 24, 2012 (P.L.1209, No.151), known as the
Child Labor Act, including the occupational restrictions for
minors.
(2) The prohibitions on hiring an individual who does
not have the legal right or authorization under Federal law
to work in the United States, in accordance with 8 U.S.C. §
1324a (relating to unlawful employment of aliens).
(b) Duty of department.--The department may enforce the
provisions of subsection (a).
(c) Penalties.--
(1) If the department determines that an employer has
violated the requirements of subsection (a), the department
shall issue a written warning to the employer.
(2) If an employer fails to comply with the requirements
of subsection (a) within 90 days of receiving the warning
under paragraph (1), the employer commits a second violation
and may be subject to a penalty of not more than $250.
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Section 9. Effective date.
This act shall take effect in one year.
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