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New Construction Industry Employee Verification Act is Effective October 7, 2020

” alt=”” width=”300″ height=”200″ data-src=”https://www.offitkurman.com/wp-content/uploads/shutterstock_762827557-300×200.jpg” data-srcset=”https://www.offitkurman.com/wp-content/uploads/shutterstock_762827557-300×200.jpg 300w, https://www.offitkurman.com/wp-content/uploads/shutterstock_762827557-768×513.jpg 768w, https://www.offitkurman.com/wp-content/uploads/shutterstock_762827557-640×428.jpg 640w, https://www.offitkurman.com/wp-content/uploads/shutterstock_762827557.jpg 1000w” data-sizes=”(max-width: 300px) 100vw, 300px” />The Construction Industry Employee Verification Act (the “Act”), requiring that all construction industry employers utilize the E-Verify program administered by the Department of Homeland Security and the Social Security Administration, goes into effect on October 7, 2020.

The Act applies to individuals, entities, and organizations in the construction industry who conduct business and employ at least one person in the Commonwealth.  Under the Act, employers must E-Verify all employees and keep those verifications for the longer of either the duration of an employee’s employment or for three years.

The Act imposes a range of penalties for violations, unless the employer can establish that the E-Verify system was used in good faith.  The penalties include, among others, a three-year probationary period for each business location where the unauthorized employee performed work and a one year or more suspension or permanent revocation of the employer’s business license, depending on prior offenses and other factors.  A general contractor may be found in violation for its subcontractor’s violations unless the general contractor includes subcontract provisions that require the subcontractor’s compliance with the Act and automatic termination of the subcontract upon court-ordered sanctions for a violation by the subcontractor and obtains a written verification from the subcontractor that it is aware of the provisions of the Act and is responsible for compliance.

Note that these requirements of the Act are in addition to other employer verification requirements, such as those that arise under I-9 verification requirements and E-Verify requirements set forth in the Pennsylvania Public Works Employment Verification Act, for applicable public works projects within the Commonwealth.

For questions about this or any other construction law issue, contact Karin Corbett at kcorbett@offitkurman.com or at 484-531-1702


Karin Corbett is a business attorney and litigator who effectively prevents, resolves and litigates legal disputes for businesses and individuals alike in a variety of industries; but her focus is primarily in the construction & real estate and equine industries.


Offit Kurman is one of the fastest-growing full-service law firms in the United States. With 14 offices in seven states, and the District of Columbia, and growing by 50% in two years through expansions in New York City and Charlotte, North Carolina, Offit Kurman is well-positioned to meet the legal needs of dynamic businesses and the individuals who own and operate them. For over 30 years, we’ve represented privately held companies and families of wealth throughout their business life cycles.

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Author: Karin Corbett, Esq.
Articles have been Reprinted with permission from the charlotte observer and Mike Hunter.

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