This bill makes publicly traded companies confirm each year that they follow federal rules for checking if employees can legally work in the U.S. The top executive and the top HR officer must sign a statement with the company’s annual report saying they have good internal controls for Form I-9 and E-Verify, that they reviewed how hiring is handled, and that the report fairly describes the workforce, including workers’ legal status. They must also disclose any major weaknesses and any known violations to the Departments of Homeland Security and Justice . Lying about this, skipping the certification, or hiding problems can lead to criminal charges, with fines up to $1 million and prison up to 10 years, and up to $5 million and 20 years if it involves hiring people not authorized to work . The SEC must write the rules within one year and make these certifications part of annual reports and available to the public .

Key points

• Who is affected: Companies that file annual reports with the SEC (and their top executive and top HR officer) .
• What changes: Annual certification of hiring-law compliance; disclosure of weaknesses and known violations; stronger internal controls for I-9/E-Verify; public availability of certifications .
• Penalties: Up to $1M/10 years in prison; up to $5M/20 years if it involves employing people not authorized to work .
• When: SEC to set rules within one year of the law taking effect; certifications then included in annual reports .