North Carolina employers would face E-Verify checks and worker protections

Employers covered by Article 2 would have to check employees’ work authorization through E-Verify and keep the verification record during employment and for one year afterward. The rules cover newly hired employees who work in the United States. The definition excludes employees who work for less than nine months in a calendar year. Covered employers include businesses and organizations with at least 25 employees in North Carolina, as well as specified state and local entities. This section would apply to violations occurring on or after July 1, 2027.

The Labor Commissioner could randomly check employers’ records and investigate complaints about E-Verify compliance. The checks would review records related to compliance with the specified E-Verify requirements. Checks would use a neutral, nondiscriminatory sample of employers registered with the Secretary of State, weighted by business size and industry; an employer could not be checked more than once per calendar year. Checks would be limited to legally required paperwork. A records request alone would not allow officials to enter private property. An employer could avoid a penalty by curing an alleged violation within 30 days and proving compliance only if the Commissioner had not previously issued an order under the specified penalty section when the violation occurred. Selected employers would have 30 calendar days after receiving notice to provide requested records.

Employers would be barred from retaliating against workers for good-faith reports or other actions about possible E-Verify violations. The protection would cover employees who in good faith report, investigate, or provide information about possible violations of Article 2 of Chapter 64. An employer could still take the same unfavorable action if it proves it would have done so without the worker’s protected activity. This section would apply to retaliatory actions taken on or after October 1, 2026.

The state would set aside $90,000 in recurring funds for a full-time Department of Labor position to help enforce the act. The position would assist the Department of Labor with enforcement of the act. The funds are specified for fiscal year 2026–2027. The appropriation section would take effect July 1, 2026, for fiscal year 2026–2027.