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 ensures that these entities verify the employment eligibility of their workers. The bill includes provisions to disqualify contractors from state contracts if they fail to comply with E-Verify requirements or hire subcontractors who are not registered in the program. Additionally, it establishes a legal hiring compliance division within the Texas Workforce Commission to oversee adherence to these regulations and enforce penalties for violations, which can amount to $5,000 per infraction.

The bill also amends existing legal language, including renaming certain chapters and sections within the Government Code and Labor Code to align with the new focus on E-Verify. It emphasizes the development of model policies and compliance guidance to assist employers in meeting these new standards. Importantly, any employment contracts signed before the bill's effective date will continue to be governed by the previous legal framework, ensuring that existing agreements remain intact. The act is set to take effect immediately upon receiving a two-thirds vote from both legislative houses, or on September 1, 2025, if such a vote is not achieved.

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