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Why the Stimulus Package Should NOT ForceBusinesses Into Flawed E-Verify Program
Leave Unhelpful and Ineffective Anti-ImmigrantEnforcement Measures that Burden Businesses Out of Stimulus
Background
The House Appropriations Committee made a serious mistake when it approved an amendment to theeconomic stimulus bill (the American Recovery and Reinvestment Act of 2009) that would require all businesses and other public or private “entities” that contract to receive money from the stimulus packageto use the flawed federal E-Verify program (aka Basic Pilot). It should be stripped from the bill.The amendment represents a massive expansion of the E-Verify program . As has been welldocumented by three different House committees in five separate hearings, the E-Verify program isdeeply flawed, inaccurate, and subject to substantial employer abuse. Bottom line – it is not ready for amassive expansion and especially not during the economic crisis.E-Verify is a voluntary internet-based program intended to allow employers to electronically verifythe information that workers present to prove their employment eligibility by accessing information indatabases maintained by the Department of Homeland Security (DHS) and the Social SecurityAdministration (SSA). Approximately 100,000 employers are enrolled in (though not necessarily using)E-Verify — slightly more than 1 percent of the approximately 7.4 million employers in the U.S.
The E-Verify provision in the stimulus will:
Create substantial new burdens for businesses, especially small businesses, at precisely thewrong time;
Harm workers who are either falsely denied work or are targeted by employers abusing the E-verify program;
Send the wrong signal to new voters that the Congress prefers to play politics by enactingsymbolic and ineffective immigration “enforcement” measures over serious and effectiveeconomic stimulus or serious immigration reform.
Why the E-Verify Requirement Should Not Be Included in the Stimulus Bill
The amendment would delay implementation of the stimulus.
o
The vast majority of entities that would be eligible to receive stimulus funds (including publicschools, hospitals, and local governments) do not now participate in E-Verify.
o
They would be precluded from participation until and unless they formally decide to do soand go through the process of applying, signing the required memorandum of understanding,training staff, and implementing the program.
o
This could take weeks or months depending on the size and other characteristics of theaffected entity. Some, including churches, small businesses and others, may choose to forgothe stimulus altogether rather than participate in the program.
 
The amendment imposes exorbitant costs at a time when our economy is most vulnerable.
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An economic analysis commissioned by the U.S. Chamber of Commerce concluded a federalrule, similar to the provision included in the stimulus package, that would require all federalcontractors to use E-Verify would result in net societal costs of $10 billion a year.
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Imposing these costs would be particularly unwise now, as our economy deepens intorecession. In particular, such costs will have a disproportionate effect on small businessesand their ability to contribute to the economy.
o
Small businesses employ approximately half of the entire U.S. workforce and have generated60 to 80 percent of net new jobs annually over the last decade. These businesses, alreadystruggling in the current economy, will face additional burdens and unanticipated problems if they are required to use Basic Pilot/E-Verify, potentially harming their ability to create new jobs and revenue.
Mandatory participation in Basic Pilot/E-Verify would further increase the cost of doingbusiness in a tough economic climate.
o
According to the American Council on International Personnel, nationally, the reason 99 percent of employers have not enrolled in E-Verify is
not 
 because they are hiringundocumented workers or shirking their employment verification responsibilities, but rather  because Basic Pilot/E-Verify enrollment is not easy or efficient.
o
Ask any small business about E-Verify and you are likely to hear stories like the following:
According to a manager of a small business in Maryland, it takes seriously its legalobligation to confirm its employees are eligible to work in the U.S., but has notenrolled in E-Verify because it does not have “the luxury of a large human resourcesdepartment” and the costs for one year would total approximately $27,000.
MCL Enterprises, an employer in Arizona, found the process of registering to use E-Verify “extremely costly” and “disruptive” to operations.
E-Verify is riddled with errors—and these errors result in unjust firings, failure to hirequalified workers, delayed employment, and lost productivity.
o
Although DHS claims that the error rates are low, that is not what U.S. businesses report:
Almost 13 percent of workers run through E-Verify by Intel Corporation in 2008could not be confirmed. All of these workers were eventually cleared by E-Verify aswork-authorized, but “only after significant investment of time and money” and “lost productivity” Intel reported.
The U.S. Citizenship and Immigration Services Ombudsman interviewed a variety of employers in Arizona (where use of E-Verify is mandatory) and found the “concernmost
frequently identified”
 
is that “temporary non-confirmations (the noticeemployers receive when the federal databases cannot confirm a worker’semployment eligibility) are “issued on work-authorized individuals.” That’s U.S.citizens and legal residents being denied work or having their employmentdelayed by a dysfunctional bureaucracy.
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If people cannot figure out E-Verify, it is said that we have people with a low level of education in this country. It is very simple to use and is very effective. It should be mandated that all companies, especially those people who are getting part of the stimulus package. Next, we need to mandate that the schools should use it and trust me as a parent, parents would volunteer to data entry the information.

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