H.B. No. 1488 seeks to improve employment practices in Texas by requiring governmental entities, state contractors, and private employers to participate in the federal E-Verify program to confirm the legal status of their employees. The bill mandates that state agencies ensure that contractors and subcontractors are registered with E-Verify as a prerequisite for contract awards. It also establishes penalties for non-compliance, which may include the suspension of licenses for employers who hire individuals not lawfully present in the U.S. To facilitate oversight, a Legal Hiring Compliance Division will be created within the Texas Workforce Commission.

The bill amends existing legal language, including renaming certain chapters and sections in the Government Code and Labor Code to emphasize E-Verify and employee verification. It introduces definitions related to the E-Verify program and outlines employer responsibilities for verifying employee information. State agencies are required to develop enforcement procedures and impose administrative penalties for violations. Importantly, contracts of employment signed before the bill's effective date will remain governed by the previous law, ensuring that existing agreements are not affected. The bill will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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