iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Alex Nowrasteh

GET UPDATES FROM Alex Nowrasteh

E-Verify E-Viscerates Labor Market

Posted: 09/23/11 08:08 AM ET

On Wednesday, September 21, the House Judiciary Committee voted along party lines to send Rep. Lamar Smith's (R-TX) Legal Workforce Act (H.R. 2885) to the House Floor. Now the rest of the House of Representatives will get a chance to debate this monstrosity.

The Legal Workforce Act, if it becomes law, will mandate universal use of a massive new workplace regulation called E-Verify, an electronic employment verification system designed to weed out undocumented workers. It would require all employers to feed the identity information of every prospective employee into a federal database that verifies the information with the Department of Homeland Security and state DMVs.

If the worker is cleared for employment, as happens 95.3% of the time, then that employment is legal. If the worker is not cleared to work and a tentative nonconfirmation (TNC) is issued, the worker and his employer then have a certain amount of time to contest the decision or identify and correct errors and inconsistencies in the worker's identification. If the worker is unsuccessful in contesting the government's decision, he is issued a final nonconfirmation (FNC) which means the worker MUST be fired.

But that is just the surface explanation of how the system works. In actual practice, E-Verify is much more complicated and confusing. Worse, it puts another federal bureaucracy between the employer and employee.

E-Verify places significant burdens on businesses. When chipmaker Intel used E-Verify to screen many of its new hires in 2008, over 12 percent were initially given a TNC. All of the prospective employees were eventually cleared to work, but as Intel put it, "only after significant investment of time and money, lost productivity and, for our affected foreign national staff, many hours of confusion, worry, and upset."

In Arizona, the 2007 Legal Arizona Workers Act (LAWA) mandated E-Verify for all hires in the state. MCL Enterprises, a Burger King franchise with 24 restaurants in Arizona, reported that over 14 percent of its employees - including 75 percent of foreign workers - were initially issued a TNC by E-Verify. They were finally cleared to work after an appeals process and bureaucratic maneuvering.

The process is even worse for small businesses. Intel and MCL had human resources and legal departments that could handle E-Verify errors at a lower cost than most small businesses that can't afford to have such departments.

Ken Nagel of Phoenix is just such a small business owner. He co-owns two popular restaurants in Phoenix called Aunt Chilada's and Rustler's Roose. He tried to hire his daughter, a natural born American, but she flunked E-Verify. In mid-2010, Mike Castillo, owner of PostalMax of Scottsdale, Arizona, wanted to hire a part-time worker but a technical glitch in E-Verify made the filing difficult. It took a few days for Castillo to figure out how to open the government's computer file and then solve the problem. After that ordeal, Castillo said, "I don't think people are going to really embrace E-Verify."

He is right.

According to some estimates, most Arizona employers weren't even using E-Verify as of July 2010. From late 2008 to late 2009, 1.3 million people were hired in Arizona but only 732,455 E-Verify checks were made.

State Senator Thayer Verschoor (R-22), a vocal supporter of LAWA, is surprised that so many businesses aren't complying. He thinks that businesses, not the regulations, are the problem. He argues that the government needs to find better ways to enforce the law and business owners need to be "educated" about it. He went on to say that it's "risky business" for companies to avoid E-Verify because their livelihood is on the line.

Threats to businesses aside, Sen. Verschoor's support of E-Verify is quixotic, because it can't even accomplish its core objective of weeding unauthorized workers out of the labor market. According to a major 2009 audit by research service Westat, 4.1 percent of E-Verify's initial responses to employment verification queries were inaccurate and the system even failed to catch 54 percent of unauthorized workers.

Worse is E-Verify's alarmingly high rate of false positives. According to Westat, nearly 1 percent of legal workers are originally given a TNC by E-Verify. The costly and complex bureaucratic appeals to correct mistakes guarantee that many TNCs are just ignored. If applied nationally, the Immigration Policy Center estimates that about 3.6 million Americans would have to visit Social Security Administration offices annually to correct their information.

Even if E-Verify's error rate is dramatically lowered, as bureaucrats have repeatedly promised in congressional hearings, it will push many workers into the black market. According to a recent report by the non-partisan Public Policy Institute of California, LAWA unintentionally "shifted unauthorized workers into less formal work arrangements."

Immigration restrictions make the world a substantially poorer place than it otherwise would be. Large black markets, like the ones of undocumented workers, are a signal to governments that their laws are ineffective and do not comport with economic reality.

As the Latin American writer Alvaro Vargas Llosa wrote, "Whenever there is a disconnect between the law and reality, reality finds ways of making the law irrelevant." That is happening very quickly in immigration. Intrusive regulatory mandates like E-Verify are just expensive regulatory diversions.

 

Follow Alex Nowrasteh on Twitter: www.twitter.com/AlexNowrasteh

 
 
  • Comments
  • 65
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
HUFFPOST SUPER USER
PulSamsara
07:20 PM on 10/13/2011
This 'progressive' supports E-Verify ! Any more like me out there ? I think Yes. Speak your mind.
02:35 PM on 10/10/2011
In every poll I've ever seen, between 70% and 85% of people support mandatory E-Verify. I have talked to small business owners who use it and they find it easy to use, and reassuring that they no longer have to risk either audits and fines on the one hand and lawsuits alleging discrimination on the other.
08:25 AM on 10/06/2011
American youth need e-verify and we owe it to the next generation to pass it. Remember when construction crews were made up primarily of college kids who needed the money?

Just the threat of passing an e-verify law in my state make many nursing homes open their doors to english speaking applicants again. A few are beginning to hire legally. That is good for young kids who want a job while they train to become a nurse and good for that people in those homes can speak to those working with them.

If you love America, ask that your senator and congressman support e-verify. Our future depends on it.
photo
HUFFPOST SUPER USER
AZ Stang
Life is far too important to be taken seriously.
07:48 PM on 09/24/2011
The only problem with E-verify is that it should have started 20 years ago!
This user has chosen to opt out of the Badges program
photo
11:00 PM on 09/24/2011
Only 20? I remember when I was a kid in the mid 50s that it was a problem.
This user has chosen to opt out of the Badges program
photo
Viper1st
multi quasi faceted
09:43 PM on 09/23/2011
Come on HuffPo Writer, E-Verify is "a massive new workplace regulation called E-Verify"

The State of Colorado passed E-Verify in 2006

May 26, 2011 ~ The U.S. Supreme Court UPHELD the State of Arizona's mandatory E-Verity for the State's Employers, after 4yrs of litigation

http://americanpowerblog.blogspot.com/2011/05/supreme-court-upholds-legal-arizona.html

E-Verify ~ the corner-stone of illegals not obtaining jobs in the USA, illegaly, any longer
This user has chosen to opt out of the Badges program
photo
Viper1st
multi quasi faceted
photo
HUFFPOST SUPER USER
LibertarianCentrist
Gary Johnson 2016!
04:58 PM on 09/23/2011
My question would be, why would ANYONE not be willing to support this?????
photo
HUFFPOST SUPER USER
chevyliddle
what's a micro-bayou?
05:24 PM on 09/23/2011
Two reasons....you're illegally in the country looking for work or your company is addicted to the cheap labor that comes with illegal immigration.
04:26 PM on 09/23/2011
E-verify for state and federal benefits as well. Food Stamps, Medical benefits, unemployement, grants, college scholarships. Any thing where tax payer money is directed handed over to an individual. If Obama and the Dems wnat to create welfare for illegals than that shoudl be classified as part of our foreign aid package.
photo
IllTakeTheRedEye
Do you know what a nonemployer business is?
04:17 PM on 09/23/2011
Alex wrote, "Worse, it puts another federal bureaucracy between the employer and employee."

Except ...Alex,
1] "The Legal Workforce Act: Replaces the I-9 System: Replaces the current paper-based I-9 system with a completely electronic work eligibility check."
http://judiciary.house.gov/news/09212011.html

So Alex, it is not another federal bureaucracy, it replaces the I-9 system. Which according to Westat, "E-Verify is much more effective than the Form I-9 verification process used by employers not using the program." (Page 7)
http://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdf

2] BTW, Alex, it is the worker's responsibility to fix any TNC letter, not the employer.

Alex wrote, "audit by research service Westat...the system even failed to catch 54 percent of unauthorized workers."

Except ...Alex,
"Westat estimates that, primarily due to identity fraud, approximately half (54 percent with a plausible range of 37 to 64 percent) of unauthorized workers run through E-Verify receive an inaccurate finding of being work authorized." (Page7)http://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdf

Identity fraud is a felony. If it were easy to stop, it would not be happening at all.
photo
voyager48
Illegitimi Non Carborundum
11:07 AM on 09/27/2011
also the addition of biometric data would improve the efficiency greatly and remove the aspect of plausible deniability that is currently a major obstacle to successfully prosecuting employers.

Obama supports the inclusion of photo ID which would be a good start since many illegals use ID from retired legal residents..
HUFFPOST SUPER USER
PulSamsara
07:22 PM on 10/13/2011
Yes. Bio-metrics are the way to go - it's easy - and it's better.
photo
HUFFPOST SUPER USER
LibertarianCentrist
Gary Johnson 2016!
03:37 PM on 09/23/2011
I support E-Verify 100% This is a great idea to prevent illegal employment, AND it will also weed out illegal immigrants using fake SS Numbers. THEN, we can have them arrested for possession of a forged document. Then have them deported.
photo
spytheweb
Black Democrat
04:56 PM on 09/23/2011
Me too. Illegals don't want local police checking on if they are in the country illegally this is a good step. Illegals who have been working under a valid SS number for many years are now under threat and should be. When this law is passed you will see a big movement of illegals, back to their homeland or to sanctuary cities where they will fight other illegals for jobs.

September 21, 2011

"Rep. Sam Johnson (R-TX) has just introduced legislation (The Refundable Child Tax Credit Eligibility Verification Reform Act (HR 1956))which would block illegal aliens from receiving any further child tax credits from the Internal Revenue Service."

http://www.sodahead.com/united-states/bill-introduced-to-end-child-tax-credits-to-illegal-aliens/question-2173881/
This user has chosen to opt out of the Badges program
photo
Viper1st
multi quasi faceted
09:51 PM on 09/23/2011
Thank You, for the link !
photo
HUFFPOST SUPER USER
dtairtime
It is what it is
11:06 AM on 09/24/2011
Gotta love the comments from readers on your link!
02:24 PM on 09/23/2011
I am 100% fopr E-verify. I am tired of liberals stating throw employers in jail for hiring illegal workers but than opposing a tool that will requirte compliance and rid the employers of a requirement that illegals game by using fake documents. E-verify should also be used to determine whether someone is a citizen and entitled to medi-care, medicaid or any other state or federal benefit program. This is a step in the right direction. If the latino community has any hope of the dream act or any other path to citizenship bill passing it must include E-verify or you are just enabling more problems in the future. Of course the latino community does not want this as it will immediately stop the flow of illegals and will reduce their political influence.
This user has chosen to opt out of the Badges program
photo
12:23 PM on 09/23/2011
Let me ask y'all a serious question...As you are out riding along the highways...if you don't ride along...you should take a trip or two just so you will understand what I am talking about...

As you are riding along..see a field full of people all stooped over picking your food, let's say in Texas where there is record heat this summer...say the temp is 103 degrees at the airport...it's a little warmer where they are..Don't it just PISS YOU OFF that you can't pull over...take off your suit coat and tie and your expensive shoes...walk right out in that field and chase those people back to where they came from and let YOU have your job back? It's unfair for them to have all the gravy jobs...that's why they don't pay very much...they have too much fun doing it. But since Tiffany doesn't charge newt interest...he could afford it..
02:46 PM on 09/23/2011
Agricultural labor accounts for 2 or 3 percent of all the illegal aliens in the country. The remaining 98-percent are working in other jobs.
04:22 PM on 09/23/2011
This is the typical Repub bs line, that nobody will work for that wage. Well in a free market economy it is the law of supply and demand. That means if the work is so bad that no one will do it for $10 an hour then you need to pay more like $20 an hour and don't let them tell you that they won't be able to stay in business. They just won't be able to buy their kid a new Mercedes for Christmas.
04:19 PM on 09/23/2011
For sake of argument, is there any reason why work in fields can't be done in shifts -- daylight to 11 am, 3 to 6 pm? Is there any reason equipment can't be developed to make field work easier, even under the most trying conditions?

Why, yes, there is a reason. Illegal immigrants cost so much less than legal workers doing the same work, or than investing in different approaches to doing the work, that farmers spend all their time lobbying for continued access to an illegal immigrant workforce.

During WWII, the Chinese, with a lot of manpower and very little capital equipment, built runways for airplanes by having thousands of peasants scrape a large piece of dirt flat by hand, bringing huge rocks out to the site in dump trucks, then having the peasants break the rocks into pea gravel with sledge hammers. It's amazing what you can do with cheap labor! That's not, however, how a first world country should go about its affairs.

At the end of the day, if there are crops like strawberries that require a tremendous amount of handwork, and we have to pay school teacher level wages to get legal American workers to do the jobs, fine, strawberries will get more expensive. Just like they are in Japan and other countries who don't import near slaves to do near slave work under near slave conditions.
This user has chosen to opt out of the Badges program
photo
12:16 PM on 09/23/2011
To keep it on the up and up...it could be handled the way Newt suggested...outsource the control of the program to the private credit card companies...I cracked up...always on the look out for a good racket ole newt is...
HUFFPOST SUPER USER
hrpmap
Retired man still active..
03:29 PM on 09/23/2011
All the card companies would have to do is program the terminals, no big deal, A tem minute transaction for download the program and the two seconds for an employer to swip a card..
12:06 PM on 09/23/2011
Your closing paragraphs say it all -- you're an open borders advocate. All the rest of this piece just raises the same tired old objections to a completely commonsense approach to getting control of our immigration mess.

Any legal worker who shows as illegal in eVerify would, presumably, want to find out and fix the whatever is causing the problem. It's a one time investment of time.

The Social Security Administration has taken no responsibility for policing misuse of numbers for way too long. eVerify will force them to clean up their part of this mess.

There are only three groups of people opposing mandatory eVerify: libertarians who believe hiring decisions are none of the government's business; illegal aliens and their enablers; employers wishing to preserve access to their illegal workforce.

All you "Progressives" out in Huffer land, please note that it is Democrats, Democrats, Democrats who are fighting eVerify, our best hope for making employers hire only legal workers!!
02:47 PM on 09/23/2011
Over 500,000 people per year pay income taxes using the SSN 000-00-0000
photo
IllTakeTheRedEye
Do you know what a nonemployer business is?
02:54 PM on 09/23/2011
Where do you stand on that? I do not believe that should be permitted. Any employer accepting that as a SSN is clearly ignoring the 1986 IRCA. The Obama administration was doing I-9 workplace audits, if they ran across even one 000-00-0000, that employer should of been prosecuted for violating Federal Law for "knowingly hiring" someone with a fraudulent I-9 form.
04:02 PM on 09/23/2011
The Social Security Administration is complicit in this whole mess. They know the SS system is in a terrible way, so they are delighted to get money from people who will never collect. That's why if multiple people are using a live person's number or a dead person's number or your child's number, they don't care. Free money.

Whether the Social Security Administration accepts it or not, the Social Security number is the closest thing we have to a national ID, yet the SSA takes no responsibility for policing its misuse.
11:20 AM on 09/23/2011
I hope this bill becomes law.
HUFFPOST SUPER USER
beckjr2000
been there done that & tired of it
11:08 AM on 09/23/2011
"Immigration restrictions make the world a substantially poorer place than it otherwise would be." Funny how enforcing Immigration Laws are so controversial. No one objects to Immigrants who come here legally. That's the way it was intended to be from the beginning. There will never be another Blanket Amnesty in our lifetime. You might as well accept that because it's the truth.
HUFFPOST SUPER USER
PulSamsara
07:34 PM on 10/13/2011
"There will never be another Blanket Amnesty in our lifetime."

That's right ! How foolish that it was done in '86 !