PRINTER'S NO. 3769
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2632
Session of
2024
INTRODUCED BY R. MACKENZIE, M. BROWN, COOK, CUTLER, HAMM,
M. JONES, KAUFFMAN, KENYATTA, LEADBETER, M. MACKENZIE, ROWE,
SCHEUREN AND SCIALABBA, OCTOBER 21, 2024
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, OCTOBER 21, 2024
AN ACT
1 Prohibiting the employment of unauthorized employees; requiring
2 grant recipient employers to verify the Social Security
3 numbers of employees; imposing duties on the Department of
4 Labor and Industry; and imposing penalties.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Grant
9 Recipient Employee Verification Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Agency." An agency, department, board or commission of the
15 Commonwealth or of a municipality that issues a license for
16 purposes of operating a business in this Commonwealth.
17 "Department." The Department of Labor and Industry of the
18 Commonwealth.
 1 "Employ." To enter into an employer-employee relationship
2 with an individual or to use a contract, subcontract or exchange
3 with an individual to obtain labor.
4 "Employee." An individual who enters into an employer-
5 employee relationship with an employer or into a contract,
6 subcontract or exchange with an employer to provide labor.
7 "Employer." A business or other entity that has received a
8 State grant.
9 "E-Verify program." The Internet-based program administered
10 by the United States Department of Homeland Security and the
11 United States Social Security Administration which allows
12 employers to verify an employee's work-authorization status. The
13 term includes any successor program.
14 "License." As follows:
15 (1) A permit, certificate, approval, registration,
16 charter or similar form of authorization that is required by
17 law and issued by an agency for the purposes of:
18 (i) operating a business in this Commonwealth; or
19 (ii) conducting operations in the employer's
20 industry.
21 (2) The term includes articles of incorporation and
22 domestic or foreign entity registrations under 15 Pa.C.S.
23 (relating to corporations and unincorporated associations).
24 (3) The term does not include a professional or
25 occupational license or certificate granted to an individual
26 to engage in a profession or trade.
27 "State grant." A State grant authorized by a law of this
28 Commonwealth which is in excess of the amount under section 2(5)
29 of the act of August 15, 1961 (P.L.987, No.442), known as the
30 Pennsylvania Prevailing Wage Act. The term does not include any
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 1 of the following:
2 (1) A tax benefit or tax credit as defined in section
3 1701-A.1 of the act of March 4, 1971 (P.L.6, No.2), known as
4 the Tax Reform Code of 1971.
5 (2) A procurement as defined in 62 Pa.C.S. § 103
6 (relating to definitions).
7 (3) Money appropriated or transferred for any other
8 purpose other than a State grant.
9 "Subcontractor." A person regardless of tier, including a
10 staffing agency, that supplies workers to an employer under a
11 contract.
12 "Unauthorized employee." An individual who does not have the
13 legal right or authorization under Federal law to work in the
14 United States.
15 Section 3. Prohibited employment.
16 (a) Prohibition.--An employer may not knowingly employ an
17 unauthorized employee.
18 (b) Verification.--On and after the execution of a contract
19 or other agreement in which the employer receives a State grant,
20 each employer who hires an employee shall verify the employment
21 eligibility of the employee through the E-Verify program and
22 shall keep a record of the verification for the duration of the
23 employee's employment or three years, whichever is longer.
24 (c) Staffing agencies.--If a staffing agency supplies
25 workers to multiple industries, subsections (a) and (b) shall
26 only apply to workers supplied for the employer's industry.
27 Section 4. Procedures, presumptions and defenses.
28 (a) Complaint form.--The department shall develop and make
29 available a complaint form for an individual to allege a
30 violation of section 3(a).
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 1 (b) Complaint process.--
2 (1) An individual may submit to the department a
3 complaint about a violation of section 3(a) on the prescribed
4 complaint form.
5 (2) An individual who knowingly provides materially
6 false information on the prescribed complaint form shall be
7 subject to punishment under 18 Pa.C.S. § 4904 (relating to
8 unsworn falsification to authorities).
9 (3) The department may investigate complaints under this
10 act.
11 (4) Pursuant to an investigation of a complaint under
12 this act, the department may:
13 (i) Enter and inspect the place of business or place
14 of employment of an employer of employees in any
15 occupation in this Commonwealth at any reasonable time
16 for the purpose of examining and inspecting records of
17 the employer that in any way relate to compliance with
18 this act.
19 (ii) Copy any or all records as the department may
20 deem necessary or appropriate.
21 (iii) Require from an employer full and accurate
22 statements in writing, at times that the department deems
23 necessary, of the work authorization verification process
24 for all employees in the employer's employment.
25 (iv) Interrogate persons for the purpose of
26 ascertaining whether an employer has complied with this
27 act.
28 (c) Duty to investigate.--Upon receipt of a complaint on the
29 prescribed complaint form alleging that an employer knowingly
30 employs an unauthorized employee, the department shall
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 1 investigate whether the employer has violated section 3(a) if
2 all the information required to complete the form has been
3 provided, including the name of the individual filing the
4 complaint.
5 (d) Authority to investigate.--The department may
6 investigate a complaint that is not submitted on the prescribed
7 complaint form, including an anonymous complaint.
8 (e) Prohibition.--The department may not investigate a
9 complaint that is based solely on race, color or national
10 origin.
11 (f) Verification.--If the department investigates a
12 complaint, the department shall verify the work authorization of
13 the alleged unauthorized employee with the Federal Government
14 under section 642(c) of the Illegal Immigration Reform and
15 Immigrant Responsibility Act of 1996 (Public Law 104-208, 8
16 U.S.C. § 1373(c)). A Commonwealth or local official may not
17 attempt to independently make a final determination on whether
18 an unauthorized employee is authorized to work in the United
19 States.
20 (g) Notification and action.--If, after an investigation,
21 the department determines that the alleged employee is an
22 unauthorized employee, the department shall do all of the
23 following:
24 (1) For a first violation, the department shall issue a
25 warning letter detailing the violation and informing the
26 employer of the provisions of this act. The following apply:
27 (i) Notwithstanding paragraph (2), a violation by an
28 employer that occurs 10 years or more after a prior
29 violation shall be deemed a first violation.
30 (ii) The department may not issue a warning letter
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 1 if the employer demonstrates that the employment
2 eligibility of the unauthorized employee was verified in
3 good faith through the E-Verify program in accordance
4 with section 3(b).
5 (iii) After the issuance of a warning letter, the
6 employer shall verify in writing to the department within
7 10 business days that the employer has terminated the
8 employment of each unauthorized employee in this
9 Commonwealth. If the employer fails to provide the
10 verification, the violation shall constitute a second
11 violation, and the department shall make a referral to
12 the Attorney General in accordance with paragraph (2).
13 (iv) The employer may appeal the issuance of the
14 warning letter under the provisions of 2 Pa.C.S.
15 (relating to administrative law and procedure).
16 (2) For a second or subsequent violation, the department
17 shall refer the case to the Attorney General for enforcement.
18 The following apply:
19 (i) The Attorney General shall bring an action
20 against the employer in the county where the unauthorized
21 employee is or was employed by the employer.
22 (ii) The Attorney General may not bring an action
23 against an employer for a violation that occurred before
24 the effective date of this subparagraph.
25 (h) Expedited action.--Upon docketing an action under this
26 section, the court shall expedite the action, including
27 assigning the hearing at the earliest practicable date.
28 (i) Determination.--In determining whether an employee is an
29 unauthorized employee, the court shall consider only the Federal
30 Government's determination under section 642(c) of the Illegal
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 1 Immigration Reform and Immigrant Responsibility Act of 1996. The
2 following apply:
3 (1) The Federal Government's determination shall create
4 a rebuttable presumption of the employee's status.
5 (2) The court may take judicial notice of the Federal
6 Government's determination and may request the Federal
7 Government to provide automated or testimonial verification
8 under section 642(c) of the Illegal Immigration Reform and
9 Immigrant Responsibility Act of 1996.
10 (j) Rebuttable presumption.--Proof that the employer
11 verified the employment authorization of an employee through the
12 E-Verify program shall create a rebuttable presumption that an
13 employer did not knowingly employ an unauthorized employee.
14 (k) Affirmative defense.--For the purposes of this section,
15 it shall be an affirmative defense if the employer demonstrates
16 that the employer has complied in good faith with section
17 274A(b) of the Immigration and Nationality Act (66 Stat. 163, 8
18 U.S.C. § 1324a(b)). An employer shall be considered to have
19 complied with section 274A(b) of the Immigration and Nationality
20 Act, notwithstanding an isolated, sporadic or accidental
21 technical or procedural failure to meet the requirements, if the
22 employer establishes a good faith attempt to comply with section
23 274A(b) of the Immigration and Nationality Act.
24 Section 5. Penalties and remedial orders.
25 (a) Order.--Upon a finding of a violation under section 3(a)
26 pursuant to an action brought by the Attorney General under this
27 act, the court shall order all of the following:
28 (1) The employer to terminate the employment of each
29 unauthorized employee.
30 (2) The employer to a three-year probationary period for
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 1 each business location where the unauthorized employee
2 performed work. During the probationary period, the employer:
3 (i) shall file quarterly reports with the department
4 of each new employee who is hired by the employer at the
5 business location where the unauthorized employee
6 performed work; and
7 (ii) may not knowingly employ an unauthorized
8 employee.
9 (3) The employer, within five business days, to verify
10 in writing to the department that the employer has terminated
11 the employment of each unauthorized employee in this
12 Commonwealth.
13 (4) Agencies to suspend each license that is held by the
14 employer if the employer fails to timely submit the
15 verification. The following apply:
16 (i) Each license that is suspended under this
17 paragraph shall remain suspended until the employer
18 complies.
19 (ii) Notwithstanding any other law, on filing of the
20 verification, each license shall be reinstated
21 immediately by the appropriate agency.
22 (iii) For the purposes of this paragraph, a license
23 that is subject to suspension under this paragraph shall
24 include each license that is held by the employer
25 specific to the business location where the unauthorized
26 employee performed work. If the employer does not hold a
27 license specific to the business location where the
28 unauthorized employee performed work, the court shall
29 order suspension of each license that is held by the
30 employer pertaining to operations anywhere within this
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 1 Commonwealth.
2 (b) Duration.--
3 (1) For a second violation of section 3(a), the court
4 may order the agency to suspend each license described under
5 subsection (a)(4) that is held by the employer for a period
6 not to exceed 30 business days.
7 (2) For a subsequent violation of section 3(a) or a
8 violation occurring during a three-year probationary period
9 under subsection (a)(2), the court shall order suspension for
10 a term not less than one year up to the permanent revocation
11 of each license.
12 (c) Factors.--In determining whether to order suspension or
13 the duration of a suspension, the court shall consider the
14 following factors:
15 (1) The number of unauthorized employees employed by the
16 employer.
17 (2) Any prior misconduct by the employer.
18 (3) The degree of harm resulting from the violation.
19 (4) Whether the employer made good faith efforts to
20 comply with any applicable requirements.
21 (5) The duration of the violation.
22 (6) The role of the directors, officers or principals of
23 the employer in the violation.
24 (7) Any other factor that the court deems appropriate.
25 (d) Suspension and reinstatement fees.--Nothing in this act
26 shall prohibit an agency from charging an applicable fee for the
27 suspension or reinstatement of a license.
28 Section 6. Protection from retaliation.
29 (a) Prohibited conduct.--It shall be unlawful for an
30 employer to discharge, threaten or otherwise retaliate or
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 1 discriminate against an employee regarding compensation or other
2 terms or conditions of employment because the employee:
3 (1) participates in an investigation, hearing or inquiry
4 held by the Secretary of Labor and Industry or any other
5 governmental authority under this act; or
6 (2) reports or makes a complaint regarding the violation
7 of this act to an employer or governmental authority.
8 (b) Actions.--
9 (1) An employee who suffers retaliation or
10 discrimination in violation of this section may bring an
11 action in a court of common pleas in accordance with
12 established civil procedures of this Commonwealth.
13 (2) The action under paragraph (1) must be brought
14 within three years from the date the employee knew of the
15 retaliation or discrimination.
16 (c) Relief.--If an employee prevails in an action commenced
17 under this section, the employee shall be entitled to the
18 following relief:
19 (1) Reinstatement of the employee, if applicable.
20 (2) Restitution equal to three times the amount of the
21 employee's wages and fringe benefits calculated from the date
22 of the retaliation or discrimination.
23 (3) Reasonable attorney fees and costs of the action.
24 (4) Any other legal and equitable relief as the court
25 deems appropriate.
26 Section 7. Immunity and compliance.
27 (a) Immunity.--An employer that relies in good faith on the
28 E-Verify program to verify employment eligibility of new
29 employees under this act shall have no liability to an
30 individual who is not hired or who is discharged from employment
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 1 if incorrect information has been provided to the