S. 2359: Strengthening Accountability for Employers Hiring Individuals and Reforming Enforcement Act

This bill, known as the Strengthening Accountability for Employers Hiring Individuals and Reforming Enforcement Act (SAFE HIRE Act), introduces new requirements for companies that are publicly traded to ensure their hiring practices comply with federal employment eligibility laws. Here’s a summary of its key provisions:

Certification of Employment Eligibility Compliance

The bill mandates that the principal executive officer and the principal human resources officer of covered employers (those that are publicly traded) submit specific certifications with their annual reports. These certifications must confirm that:

• The officers have reviewed the report.
• The report does not contain misleading statements or omit important facts.
• The report accurately presents the company's employment practices, including the legal working status of its employees.
• The officers are responsible for maintaining internal controls to ensure compliance with employment eligibility verification requirements.
• The officers have evaluated the effectiveness of these internal controls at least 90 days prior to the report submission.
• Any significant deficiencies or material violations in compliance with federal laws regarding employment eligibility have been disclosed to the relevant authorities.

Internal Controls

Covered employers are required to implement internal controls that are designed to:

• Ensure compliance with federal employment eligibility verification laws.
• Identify and prevent the use of fraudulent documentation during hiring.
• Promptly detect, report, and fix known violations of employment eligibility requirements.

Penalties for Non-Compliance

The bill establishes criminal penalties for individuals who knowingly provide false certifications regarding employment eligibility compliance. Penalties include:

• A fine up to $1 million and/or imprisonment for up to 10 years for general violations.
• A fine up to $5 million and/or imprisonment for up to 20 years for violations involving the employment of unauthorized aliens.

Implementation and Rulemaking

Once the bill is enacted, the Securities and Exchange Commission (SEC) will have one year to create rules that require public companies to include these new certifications in their annual Form 10-K reports. The SEC will also ensure that these certifications are publicly available and will adopt any necessary regulations to implement the bill’s provisions.

Relevant Companies

None found