Mandatory work eligibility verification proposed

The Business and Labor Committee heard testimony March 3 on a bill that would require Nebraska businesses to verify the employment authorization status of their workers.

LB532, as introduced by Omaha Sen. Kathleen Kauth, would require businesses with at least 25 employees to use the federal E-Verify system to confirm the work eligibility of new employees, beginning Jan. 1, 2026. The bill would not apply to state or local government or other political subdivisions.

The bill would require the Nebraska Department of Labor to develop and administer a statewide random auditing program to inspect for compliance with the measure’s provisions. Violations would result in civil penalties and possible suspension of an employer’s license.

Kauth brought an amendment to the hearing that, among other changes, would remove entities that hire bona fide independent contractors from the bill’s provisions and require NDOL to provide an annual report to the Legislature.

Kauth said the bill not only would benefit Nebraska businesses and workers, but also undocumented immigrants who she said are being exploited by employers.

Undocumented immigrants may face wage theft, unsafe working conditions and threats of violence from those who take advantage of their vulnerable position, she said. LB532 would help mitigate those conditions by reducing the incentive for businesses to hire undocumented immigrants “under the table,” she said.

Kauth also said the removal of undocumented immigrants from the state’s workforce would provide legal residents with more job opportunities and increased access to affordable housing and competitive wages.

“LB532 is a commonsense step towards strengthening our economy, giving peace of mind to our businesses and unlocking hiring wages and more opportunities for our workers,” she said.

Doug Kagan testified in support of the bill on behalf of Nebraska Taxpayers for Freedom, saying mandatory E-Verify use would reduce the number of undocumented immigrants in the state. Work status verification would encourage undocumented immigrants to leave Nebraska by making it more difficult for them to find and maintain employment, he said, forcing them to seek work opportunities in other states.

“Barring [undocumented immigrants] from our state workforce will send a message that Nebraska is not a sanctuary state for illegal … employment,” Kagan said.

Marilyn Asher also spoke in favor of the proposal. As a former small business owner, she said, it was frustrating to see other employers pay their workers in cash to avoid paying taxes.

Those employers were using community resources provided through taxpayer dollars without contributing themselves, she said, and — whether intentional or not — the result was less revenue for Nebraska.

“Our state needs to stand up to the practice of employers who are allowing the erosion of our financial infrastructure by illegally hiring those who do not pay taxes,” Asher said.

Natasha Naseem, an attorney with the Center for Immigration and Refugee Advancement, testified in opposition to the proposal. The E-Verify system has been shown to be ineffective, she said, and produces thousands of false negative results due to outdated or inaccurate information.

Naseem said over 40,000 individuals incorrectly were found not to be work authorized before those results were contested. If the employer or employee had not taken the extra steps to contest the initial finding in those cases, she said, job opportunities would have been lost.

“[LB532] may contribute to a discriminatory and chilling effect in employment practices where employers rely on perceived immigration status or ethnicity as grounds for hiring so as to not deal with the burdensome system,” Naseem said.

Kris Bousquet also testified in opposition on behalf of the Nebraska State Dairy Association, Nebraska Farm Bureau, Nebraska Cattlemen, Nebraska Pork Producers and Renewable Fuels Nebraska.

He said the regulatory authority for workplace hiring practices related to immigration status is best handled at the federal level. Requiring E-Verify at the state level creates more bureaucracy for many in the agricultural industry who already have difficulty finding workers to do physically demanding tasks, he said, such as caring for livestock.

“We urge the Legislature to not add more red tape to our hiring practices and redirect their efforts by engaging with our federal delegation to develop a legal workforce immigration policy framework that works.”

The committee took no immediate action on LB532.