E-Verify Program Implementation Delayed Again

The E-Verify program is sponsored by the Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). The purpose of this program is to verify the employment eligibility of new hires online by comparing information from an employee’s I-9 form against SSA and DHS databases.

An enforcement-only law like E-Verify oversimplifies the immigration issue and does not address the problem as a whole. Enforcement is an important part of a comprehensive plan, but imposing E-Verify without broad immigration reform will further damage the economy. It simply does not make sense to impose worksite enforcement before there are legal channels in place to meet employer labor supply needs.

The E-Verify system relies on the Social Security Database, which is fraught with errors. The federal government acknowledges that the database has an error rate of 4.1% – meaning 1 in every 25 new hires will receive a tentative non confirmation, causing administrative and bureaucratic difficulties for many legal workers and employers.

Only employers who fill out the proper documentation will be required to utilize the E-verify system. Imposing mandatory E-Verify laws without first ensuring an adequate legal workforce will encourage more employers and workers to operate “under the table” and may prompt identity theft and document fraud.

Additionally, E-Verify has not been tested on a large scale. Currently, E-Verify is only being used by about 100,000 employers across the country, and it remains to be seen whether the system can handle larger volumes. As a matter of fact, President Obama recently postponed the implementation of E-Verify for federal contractors “in order to permit the new administration an adequate opportunity to review the rule.” The new implementation for federal contractors is now May 21, 2009. This is the second time the rule has been delayed – the first was due to the US Chamber of Commerce and other concerned groups filing lawsuits to block the regulation. The new delay has prompted the question that if our federal government does not have faith in E-Verify, it certainly does not make sense to mandate it on the statewide level. E-Verify is simply not ready for a massive expansion, especially not during the economic crisis.

As our economy continues to decline, federal and state governments should not impose additional costs on small businesses, which do not have the staff and resources to wade through E-Verify’s layers of red tape. Small businesses employ about half of the US workforce and have generated 60-80 percent of net new jobs annually over the past decade. Mandating E-Verify will cause all businesses to face undue burdens and hinder their ability to survive in a down economy.

For these reasons, business associations throughout the state are encouraging lawmakers not to pass any laws requiring or incentivizing the use of E-Verify. Instead, legislators are encouraged to push for comprehensive immigration reform on the federal level, where it belongs.