August 18, 2008 12:55 PM
The US Chamber of Commerce, the world’s largest business federation, recently wrote a detailed report to the Government Services Administration outlining the failures and economic burdens of the E-Verification system. The Chamber accepted that “…the federal government and employers have a compelling interest in seeing that every tool is made available to employers to ensure a legal workforce….” However they called the use of mandatory E-Verify program for government contractors “… misguided, premature and unwarranted.”
A mandatory E-Verify pilot program was passed in Suffolk County just a few months ago. During the hearing and appeals to legislators there was never any indication given that the program had been economically vetted. In fact the economic ramifications of this legislation did not appear to be a priority. But the US Chamber of Commerce is clearly concerned.
This appeal points out that Congress has created a detailed system of employment verification and has approved a variety of verification options from which every employer in the country may choose. The Chamber points out that it is an abuse of power by the US Executive branch to not act within the parameters of this existing legislation. Same goes for Suffolk County Legislators.
While we are hopefully past considerations of further use of the E-Verify system, we know that use of other employment verification systems are in the works. These new regulations, which violate pre-emption laws, will bring more of the same burdens and economic costs to Suffolk County.
The largest and arguably most influential economic body in the country has spoken out against these types of redundant and onerous employment verification systems. Suffolk County, are you listening?
Some of the more detailed ramifications of E-Verify for businesses:
- The opportunity cost for employees who are forced into unemployment and can not resolve their SSA or DHA record mis-matches.
- Ignores the opportunity cost for employers associated with forced unemployment of workers - including replacement and retraining
- Does not factor in the significant cost of a reduced supply of firms willing to be government contracts or who will now contract at a higher cost to the government, factoring the additional burden of E-Verify program.