The Devil Went Down to Georgia: New Immigration Law for Public Projects

A few of my favorite parts of a holiday picnic are: kids running through sprinklers, very cold watermelon, crispy hot dogs, and the Charlie Daniels Band blaring over the speakers.  (... yep, the devil went down to Georgia ... he was looking for a soul to steal ...)  I do not intend to equate the devil with immigration reform, but keep reading so that you can make your own decision.

Last week, Georgia law makers enacted the Illegal Immigration Reform and Enforcement Act of 2011, which will change the requirements for doing work on construction public projects in Georgia.  The existing law (OCGA 13-10-91) already requires a contractor bidding or contracting with a public owner to provide an affidavit attesting that:

  1. it has registered with and is authorized to use E-Verify;
  2. the contractor's user ID number and date of authorization; and
  3. it is using and will continue to use E-Verify throughout the contract period for all newly hired employees or subcontractors. 

First and second tier subcontractors are also required to register and participate in E-Verify to verify info of all newly hired employees.  Notice of the identity of any new subcontractors on the project is required to be sent to the owner within five business days.

The new law extends the affidavit requirement to all tiers of subcontractors and sub-subcontractors, including suppliers who contract with a sub or sub-sub.  A fourth  requirement is added to the affidavit form: (4) the contractor will contract for the work only with subcontractors who present an affidavit with the same info as the contractor's affidavit.  This additional requirement applies to the affidavits from subs and sub-subs.  Instead of sending notice of the identity of new subs, you send affidavits from the new subs.  The language indicating it applies to "newly hired employees and subcontractors" has been deleted, so now it applies to everyone.  Obviously, the idea is to require the public owner to collect affidavits from everyone working on the project that they are verifying employee info through E-Verify. 
 
So what, fellow Charlie Daniels Band lovers?  Public owners face funding cuts if found to be in violation of the new requirements, so they will be taking it seriously.  Contractors face penalties only if they "knowingly and willfully" make false statements in an affidavit, but are not held liable for unknowingly or unintentionally accepting a bid or contracting with a sub who violates the requirement.
 
The effective date for these changes is July 1, 2011.  The way the statute is written, it apparently applies only to new bids and contracts after the effective date.  It says a public employer shall not enter into a contract for work unless the contractor participates in E-Verify, and shall not consider a bid unless it includes the new affidavit from the contractor.  Also, a form of affidavit is supposed to be posted on the website of the Dept of Audits and Accounts by August 1, 2011, a month after the effective date of the statute (none posted yet).  This indicates the new affidavit requirements only apply to bids and contracts after the effective date of July 1, 2011.  Therefore, for public contracts already signed and underway, it appears that you keep doing what you were already doing.  But it is worth confirming with the owner rep on ongoing projects. 
 
There is another portion of the new law that requires all businesses with more than 10 employees to register with and use E-Verify as a condition of getting or renewing a business license or maintaining licensure status under state licensing laws.  It is phased in over a couple of years, first becoming effective Jan 1, 2012 for employers with 500 or more employees.

Image: may wong

Are You or Your Subcontractors Using Illegal Immigrant Labor on Your Construction Projects?

Last month, Tennessee Department of Transportation (TDOT) suspended all current bridge construction projects by Britton Bridge, LLC and related companies until they performed an independent review of their safety procedures.  This action came as a result of a second on-the-job fatality of a worker at the Henley Bridge project in Knoxville, TN, since January 2011.

But the inquiry has not stopped there.  Earlier this week, the Department of Homeland Security's Immigration and Customs Enforcement took lead of the investigation into the two fatal worker accidents to determine whether the Britton knowingly hired illegal immigrants. According to the report, an illegal immigrant had a role in the first accident in January and the second victim last month may have also been working illegally.

As a contractor, what do you need to know about the immigrant status of your employees or subcontractor's employees?  Here is what the law requires for public projects in Tennessee: 

  • The state shall not contract for goods or services from any person who knowingly utilizes the services of illegal immigrants in the performance of the contract.
  • That means, no contractor can knowingly utilize the services of illegal immigrants in the performance of a contract with the state.
  • Effective January 1, 2007, the contractor must attest in writing that it will not knowingly utilize services of illegal immigrants.
  • If a contractor does so, then he may be barred from public contracting for a period of one year.

So, how does the contractor comply with the state law?  First, it should include an appropriate attestation clause in its prime contract with the state, which may look something like this:

Contractor attests, certifies, warrants, and assures that it shall not knowingly utilize the services of an illegal immigrant in the performance of the Work and shall not knowingly utilize the services of any Subcontractor who will utilize the services of an illegal immigrant in the performance of the Work.

The next step for the contractor is to include a similar requirement in its subcontracts, which may look something like this:

Contractor has agreed to comply with the immigrant labor provisions of all applicable laws, including Tennessee Code Annotated, Section 12-4-124. Accordingly, Subcontractor agrees that it will not knowingly utilize the services of illegal immigrants in the performance of the Work. Additionally, upon execution of this Subcontract, Subcontractor shall provide a written attestation in the form of the attached “Addendum” stating that it will not knowingly utilize the services of illegal immigrants in the performance of the Work.

This information may be helpful for projects in Tennessee and you should check with your attorney to review the applicable state and other Federal labor requirements for public projects.

Image: Norman Lowery

Muchos Problemas: Music City Center Highlights TN's "Immigrant Labor" Construction Laws

Last night, the evening news reported that Tennessee House Democrat Leader Mike Turner planned to file a complaint with the Department of Labor, alleging that "one of the contractors working on the Music City Center project is hiring illegal immigrants."  Turner stated that he received the information from an inside source.

 Music City Center

While there may be muchos problemas on the Music City Center, this is a good time to review the state's laws on use of immigrant labor on public projects.  Here is what the law requires:

  • The state shall not contract for goods or services from any person who knowingly utilizes the services of illegal immigrants in the performance of the contract.
  • That means, no contractor can knowingly utilize the services of illegal immigrants in the performance of a contract with the state.
  • Effective January 1, 2007, the contractor must attest in writing that it will not knowingly utilize services of illegal immigrants.
  • If a contractor does so, then he may be barred from public contracting for a period of one year.

So, how does the contractor comply with the state law?  First, it should include an appropriate attestation clause in its prime contract with the state, which may look something like this:

Contractor attests, certifies, warrants, and assures that it shall not knowingly utilize the services of an illegal immigrant in the performance of the Work and shall not knowingly utilize the services of any Subcontractor who will utilize the services of an illegal immigrant in the performance of the Work.

The next step for the contractor is to include a similar requirement in its subcontracts, which may look something like this:

Contractor has agreed to comply with the immigrant labor provisions of all applicable laws, including Tennessee Code Annotated, Section 12-4-124. Accordingly, Subcontractor agrees that it will not knowingly utilize the services of illegal immigrants in the performance of the Work. Additionally, upon execution of this Subcontract, Subcontractor shall provide a written attestation in the form of the attached “Addendum” stating that it will not knowingly utilize the services of illegal immigrants in the performance of the Work.

This information may be helpful for projects in Tennessee and you should check with your attorney to review the applicable state and other Federal labor requirements for public projects.

 

Update: Thanks for friendly reader Emily for pointing out that there is no such thing as muchas problemas and the correct phrase is muchos problemas.  Gracias Emily!

Image: Nashville Chamber of Commerce

 
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