March 14, 2025

In early March, Nebraska held a hearing to discuss Legislative Bill 532 (LB 532). State Sen. Kathleen Kauth introduced LB 532, explaining that it would require Nebraska employers with at least 25 employers to use the federal online verifying system, E-Verify.

According to the Nebraska Labor Department, implementing LB 532 would impact over 6,000 businesses. The data revealed that many use E-Verify already, either voluntarily or under mandate. Failure to incorporate E-Verify or a system equivalent to it could lead to suspensions of their business licenses.

Supporting E-Verify

Supporters argue that E-Verify would ensure fair competition and protect legal workers. Others added that LB 532 would help businesses prevent undocumented workers from taking jobs. Sen. Kauth also explained LB 532’s effectiveness during the public hearing, saying it should bring “peace of mind and a level playing field.”

Following that statement, Sen. Kauth emphasized prioritizing employment for citizens and legal residents. Proponents of LB 532 claim undocumented workers unfairly depress wages. As such, supporters argue that undocumented immigrants have contributed to preventable deaths. One supporter denounced current hiring practices after citing two deaths, claiming “[they]were entirely preventable since illegal aliens shouldn’t even be in the country in the first place and couldn’t remain here without jobs.”

Concerns and Criticisms

Many critics have highlighted flaws in E-Verify. For example, the American Civil Liberties Union commented on E-Verify’s 1.67% error rate in 2024 and its potential for opening up discrimination. Such critics warn that these errors could discourage employers from hiring many qualified candidates. As a result, many honest workers would lose out on job opportunities they could have obtained without E-Verify’s involvement.

However, several agriculture industry representatives opposed the bill. They argued that labor shortages in demanding jobs like dairy farming would worsen if LB 532 took effect. Despite the disapproval of LB 532, they contended that immigration enforcement should remain a federal responsibility.

Though the Nebraska Chamber of Commerce and Industry remained neutral, it expressed concerns about the bill’s reliability. As a result, the Chamber’s representative warned against forcing businesses to rely on a system known to make mistakes. The representative claimed this reliance could create hardships for employers struggling in a tight labor market.

Proposals to Consider

LB 532 proposed random audits by the Nebraska Department of Labor. Noncompliance could lead to penalties, such as suspension of business licenses, especially when knowingly hiring undocumented workers. The estimated cost of implementation in the first year is about $260,000. The Nebraska Legislature’s Business and Labor Committee has not yet committed to advancing the bill for a proper legislative debate.

Disclaimer:
Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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