North Carolina HB 1214: Department of Health and Human Svcs Revisions.-AB

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 1214
Committee Substitute Favorable 6/9/26
Committee Substitute #2 Favorable 6/10/26

Short Title: Make E-Verify Great Again. (Public)
Sponsors:
Referred to:
May 5, 2026
*H1214-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO REQUIRE STATE AND LOCAL GOVERNMENT EMPLOYERS TO COMPLY 2
WITH ARTICLE 2 OF CHAPTER 64 OF THE GENERAL STATUTES, TO CREATE A 3
GOOD-FAITH SAFE HARBOR FOR EMPLOYERS WHO UNKNOWINGLY RECEIVE 4
FRAUDULENT DOCUMENTATION RELATED TO THE FEDERAL E-VERIFY 5
PROGRAM, TO ALLOW THE COMMISSIONER OF LABOR TO CONDUCT RANDOM 6
COMPLIANCE CHECKS RELATED TO E-VERIFY, TO ALLOW EMPLOYERS TO 7
CURE ALLEGED VIOLATIONS OF E-VERIFY REQUIREMENTS, TO INCREASE THE 8
CIVIL PENALTIES FOR EMPLOYERS WHO FAIL TO COMPLY WITH E-VERIFY 9
REQUIREMENTS, TO PROTECT EMPLOYEES FROM RETALIATION FOR 10
GOOD-FAITH REPORTS OF SUSPECTED VIOLATIONS OF E-VERIFY 11
REQUIREMENTS, AND TO APPROPRIATE FUNDS TO THE DEPARTMENT OF 12
LABOR FOR THE ENFORCEMENT OF THIS ACT. 13
The General Assembly of North Carolina enacts: 14
SECTION 1.(a) G.S. 64-25 reads as rewritten: 15
"§ 64-25. Definitions. 16
The following definitions apply in this Article: 17
(1) Commissioner. – The North Carolina Commissioner of Labor. 18
(2) Employ. – Hire an employee. 19
(3) Employee. – Any individual who provides services or labor for an employer 20
in this State for wages or other remuneration. The term does not include an 21
individual whose term of employment is less than nine months in a calendar 22
year. 23
(4) Employer. – Any person, business entity, or other organization that transacts 24
business in this State and that employs 25 or more employees in this State. 25
This term does not include State agencies, counties, municipalities, or other 26
governmental bodies.The term also includes any entity required to participate 27
in E-Verify pursuant to any of the following: 28
a. State and local entities pursuant to G.S. 126-7.1(i). 29
b. Counties pursuant to G.S. 153A-99.1. 30
c. Municipalities pursuant to G.S. 160A-169.1. 31
(5) E-Verify. – The federal E-Verify program operated by the United States 32
Department of Homeland Security and other federal agencies, or any 33
successor or equivalent program used to verify the work authorization of 34
newly hired employees pursuant to federal law. 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1214-Third Edition
(6) Unauthorized alien. – As defined in 8 U.S.C. § 1324a(h)(3)." 1
SECTION 1.(b) G.S. 64-26 reads as rewritten: 2
"§ 64-26. Verification of employee work authorization. 3
(a) Employers Must Use E-Verify. – Each employer, after hiring an employee to work in 4
the United States, shall verify the work authorization of the employee through E-Verify. 5
(b) Employer Preservation of E-Verify Forms. – Each employer shall retain the record of 6
the verification of work authorization required by this section while the employee is employed 7
and for one year thereafter. 8
(c) Repealed by Session Laws 2013-418, s. 2(g), effective September 4, 2013. 9
(d) Good-Faith Compliance. – An employer shall be deemed in good-faith compliance 10
with this Article if the employer timely enrolls in and utilizes E-Verify as required by law, 11
properly completes and retains all required forms and documentation, and does not knowingly or 12
with reckless disregard accept fraudulent documentation. An employer acting in good-faith 13
compliance with this Article shall not be subject to civil penalties under this Article solely 14
because an employee submitted fraudulent information or documentation that could not 15
reasonably have been detected." 16
SECTION 1.(c) G.S. 64-29 reads as rewritten: 17
"§ 64-29. Investigation of complaints.complaints; compliance checks. 18
(a) Investigation. – Upon receipt of a complaint filed in accordance with G.S. 64-28, the 19
Commissioner shall investigate whether a violation of G.S. 64-26 or G.S. 143-133.3 has in fact 20
occurred. 21
(a1) Random Compliance Checks. – The Commissioner may conduct random compliance 22
checks of employers to determine compliance with G.S. 64-26 and G.S. 143-133.3. Random 23
compliance checks shall be conducted in a neutral and nondiscriminatory manner based on a 24
randomized sample of all employers registered with the Secretary of State, weighted by size and 25
industry. Upon selecting an employer for a random compliance check, the Commissioner shall 26
provide written notice to the employer. The written notice shall include any request for 27
employment records from the employer, provided that any employment records requested under 28
this subsection shall be limited to the documentation listed in subsection (e) of this section. The 29
employer shall provide the Commissioner with the requested employment records within 30 30
calendar days of receiving the notice of the random compliance check. No employer shall be 31
subject to a random compliance check more than once per calendar year. 32
(b) Certa