H.B. No. 1488 seeks to improve employment practices regarding the legal status of employees in Texas by mandating that contractors and subcontractors involved in state contracts participate in the federal E-Verify program. This requirement aims to ensure that employee information is verified, and the bill introduces new sections to the Government Code that allow for civil actions to recover amounts owed to public agencies and establishes penalties for non-compliance with E-Verify. Additionally, a Legal Hiring Compliance Division will be created within the Texas Workforce Commission to oversee compliance and investigate violations related to unauthorized workers.

The bill also amends existing legal language, including renaming chapters and sections within the Government and Labor Codes to emphasize E-Verify and employee verification. It prohibits the misclassification of employees as independent contractors to avoid compliance and imposes administrative penalties for such violations. Furthermore, it outlines the responsibilities of state agencies to ensure E-Verify compliance as a prerequisite for issuing licenses and permits. Contracts of employment signed before the Act's effective date will remain governed by the previous legal framework, ensuring that existing agreements are not affected. The bill is set to take effect immediately upon receiving a two-thirds vote from both legislative houses or on September 1, 2025, if the vote is not achieved.

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