SB163 Alabama 2011 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2011

Title

Businesses or public employers, required to verify legal status of new employees through federal E-Verify program, penalties

Summary

SB163 would require Alabama businesses and public employers to verify new employees' legal status through the federal E-Verify program and impose license suspensions for violations.

What This Bill Does

It requires verification of every new employee's eligibility through E-Verify. Public employers must register with E-Verify and ensure contractors on public contracts also use it. Violations can lead to suspension or permanent loss of state licenses, and license status can affect the entity's ability to operate. The law uses federal immigration determinations and includes presumptions about good faith compliance.

Who It Affects

• Business entities in Alabama with a business license or operating under a license, who must verify new hires via E-Verify and could have licenses suspended for violations.
• Public employers (state and local government agencies) and contractors working on public contracts, who must use E-Verify and may face license penalties for noncompliance.

Key Provisions

• All new hires must have their employment eligibility verified through E-Verify, with documentation kept for at least three years after the employee's termination and provided to the state on request.
• Public employers must register with and use E-Verify; contractors working on public projects must be registered and use E-Verify for their new employees; contracts entered into before the act's effective date are exempt.
• Enforcement is through the district attorney or city attorney; first violation can result in suspension of all licenses for 1 to 30 days, and second or subsequent violations can lead to permanent license suspension; suspension prevents operating or opening a new business during the period.
• Local or state officials cannot independently determine immigration status; status must be verified with the federal government; courts rely on federal determinations and may request new verification; the most recent federal determination creates a rebuttable presumption of immigration status.
• If a business has enrolled in E-Verify and used it in good faith, there is a rebuttable presumption that the business did not knowingly employ an unauthorized alien.
• Effective date: the act becomes law on January 1 of the year after it is passed and approved.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Employment