Monday, August 15, 2011

Effective today . . . .

Among the several new laws passed by the Louisiana Legislature are HB 342 and HB 646, which effective today impose upon employers certain duties concerning employment. HB 646 amends RS 23:995 to impose civil penalties on "persons" who "for himself or on behalf of others shall employ, hire, recruit or refer . . . an alien who is not entitled to lawfully reside or work in the United States." Penalties include civil fines for the first and second violation, and for subsequent violations, suspension of the employer's license to do business in the state. Except for healthcare facilities, enforcement is by the Louisiana Workforce Commission, which can seek fines, injunctive relief, and if judicial enforcement is required, seek attorney fees and judicial interest on the civil fines assessed.

The second new law, HB 342, prohibits private employers from bidding on or contracting with a public entity for services to be performed in the State of Louisiana unless it verifies by affidavit that it uses, and will continue to use during the term of the contract, the federal E-Verify program. The requirement applies to all of the employer's employees working in Louisiana, not just employees on the public project. The employer must require its subcontractors to agree to do the same. Non-compliance can lead to cancellation of any existing contract and debarment for up to three years from the date of discovery of the violation. HB 342 applies to contracts entered into, or bids offered on or after January 1, 2012.

Both of theses statutes create an intended safe harbor for an employer relying upon the federal E-verify program. The public contracts law requires it. The broader law, HB 646 permits not only E-Verify, but reliance upon the documents acceptable in the I-9 verification process. Both verification processes can result in error and the employment of "illegals." But an employer benefits from the safe harbor if it has complied with the verification process, even if the result is flawed.