E-Verify Nixed; Lake Elsinore And Wildomar Affected

To accelerate job growth, Gov. Jerry Brown has signed into law a bill that prevents local government from forcing employers to use the often-criticized E-Verify system to check immigration status on employees.

But Lake Elsinore and Wildomar both passed ordinances last year requiring E-Verify’s use.

Drafted by Assemblyman Paul Fong (D-Cupertino) and signed into law this weekend, the Employment Acceleration Act of 2011, or AB 1236, prohibits the state, or a city, county, or special district from forcing an employer to use the electronic employment verification system – known as E-Verify -- except when required by federal law or as a condition of receiving federal funds.

The E-Verify Program of the U.S. Department of Homeland Security, in partnership with the United States Social Security Administration, enables participating employers to use the program to verify that employees they hire are authorized to work in the United States.

In December Wildomar City Council adopted Ordinance 57, which mandates that contractors awarded city contracts be required to enroll in the E-Verify program; subcontractors are also required to participate in the program.

The ordinance was adopted by a City Council vote of 4-1. City Councilman Bob Cashman was the lone dissenter; he urged that the city should use its own controls versus federal government controls.

In a 5-0 vote on July 22, 2010, Lake Elsinore City Council adopted an ordinance that requires businesses in the city to utilize E-Verify.

Under Section 5.30.030 of Lake Elsinore’s code, “Every employer, after hiring an employee, shall verify the employment eligibility of the employee through the E-verify program.”

“Employer” is defined in the code as “any person that is transacting business in the City and that employs one or more employees in the City.”

However, the Employment Acceleration Act of 2011 states that cities cannot mandate E-Verify’s use even as a condition of receiving a government contract or as a condition of applying for or maintaining a business license.

Assemblyman Fong spokesman Bryan Singh said the new law forces some local municipalities to repeal their ordinances. With the exception of instances covered by federal law, Lake Elsinore and Wildomar are among the municipalities that may need to revamp their E-Verify ordinances, according to Singh.

The text of AB 1236 cites various reasons why E-Verify should not be mandated, including that the system doesn’t meet requirements for accurate verification; that it slows down the hiring process; and that it increases the costs of doing business in a difficult economic climate.

The Act also argues that, with California’s high unemployment, the state should be “facilitating and incubating” job development and economic growth.    

Under the new Act, completion of the I-9 Employment Eligibility Verification form is still required under federal law.