seen and (mostly) unseen

8/6/2019 Seen and (Mostly) Unseen

1/16

1 Center or American Progress | Seen and (Mostly) Unseen

Seen and (Mostly) Unseen The True Costs of E-Verify

Philip E. Wolgin, Ph.D. June 2011

Introduction

E-Veri y he ederal governmen s In erne -based sys em ha veri es work eligibili y

is sla ed o become he epicen er o he legisla ive batles over immigra ion re orm hissummer. House Judiciary Commitee Chairman Lamar Smi h ( - X) in roduced heLegal Work orce Ac o 2011, H. . 2164, on June 14, 2011, which would make E-Veri y manda ory or all workers in he Uni ed S a es. I is likely o see a vo e in he House by

he summer recess.1

E-Veri y is already in use by an es ima ed 4 percen o American employers,2 buexpanding i or use by all U.S. businesses, rom he mom-and-pop grocery s ore, o

he bigges employers in he na ion, presen s onerous and expensive challenges. Teinheren echnical hurdles o scaling a sys em up rom 4 percen o 100 percen o all

employers include building he necessary in ras ruc ure o process E-Veri y reques sand opera ing i wi hou error.

Tis brie seeks o arm policymakers and he public wi h a beter unders anding o herue cos s o E-Veri y. I explains he sys ems known cos s, such as los ax revenue and

mone ary burdens on small businesses, and es ima es he cos o addi ional scal bur-dens o individuals veri ed hrough he sys em, o employers u ilizing he sys em, and

o he ederal governmen in running he sys em ha have been absen rom much o he dialogue surrounding i . (see Figure 1)

In par icular, we ocus on he added cos s ha do no ge scored in governmen revenuees ima es, such as he high legal cos s o employers o de end heir use o he program,

he jobs ax ha will be needlessly applied o American workers, and he increased burdens on ederal agencies rom new manda es. All o hese numbers add up o onesimple conclusion:Mandating E-Verify without legalizing all workers is too expensive,especially in these fragile economic times.


2/16


jobs tax (per person)

to resolve erroneous TentativeNoncon rmations, or an estimated1.2 million to 3.5 million Americans.

Figure 1

The costs of E-Verify

To individuals

To employers

To the federal government

jobs tax (per person)

to procure proper photoidenti cation or the system, oran estimated 770,000 Americans.

$ 2 25 $ 1 9 0

?770,000 lost jobs

due to system errors

$2.6 billionper year in costs or small business.First year startup costs or business with:

$435Annual costs a ter year one orall small businesses (on average)

PLUS:Millions in legal ees to complywith government regulationsand de end against lawsuits

$17.3 billion in lost tax revenue over 10 years

$765 million to $838 million over our years or DHS operations, at a minimum

$281 million over ve years or SSA operations, at a minimum

$18 million to $53 million per year to resolve erroneous Tentative Noncon rmations

Untold millions to set up the necessary in rastructure to allow businesses withoutInternet access to use the system

Hundreds of millions to ul ll the sections o the Legal Work orce Act that orce thegovernment to investigate and block misused social security numbers

We begin wi h an overview o he sys em and i s curren opera ions, and hen de ail he cos s o indiviemployers, and he ederal governmen ha will accrue i E-Veri y is made manda ory. Finally we o er s

ional no es o cau ion, as well as sugges ions or how o improve he sys em be ore i becomes he lawor all U.S. employers. Our calcula ions are based on he presen E-Veri y sys em. While some par s o

may be changed i he Legal Work orce Ac is passed, we have based our assump ions on wha we know no

$1,254

$3,163

$5,515

$24,422

10 employees

50 employees

100 employees

500 employees

* The Legal Work orce Act, or example, only applies E-Veri y to new hires and certain groups, such as government employees, workers in critical in rastructure, and employ-ees who receive a mismatched in ormation notice. There are 60 million new hires in the United States each year, 10 million no-matches, and 22 million government workersat the ederal, state, and local levels. Already, then, 92 million people will have to use the system at the outset, not even counting employers who voluntarily decide toreveri y their workers. Thus we base our calculations on the entire working populationjust over 154 million people assuming that most individuals will encounter thesystem sooner or l ater. The number o new hires is based on United States Government Accountability O ce, Employment Veri cation: Federal Agencies Have Taken Stepsto Improve E-Veri y, but Signi cant Challenges Remai n, December 2010, p. 19, available at: http://www.gao.gov/new.items/d11146.pd .


3/16


The system

E-Veri y is an In erne -based sys em ha checks he work au horiza ion s a us o an individual agains da a held by he Depar men o Homeland Securi y and Social Securi y Adminis ra ion. Te Illegal Immigra ion e orm and Immigra ion esponsibili y Ac o 1996, or II IR, crea ed he Basic Pilo Program, which la er became known as E-Veri y,

and i s usage has grown ever since. According o U.S. Ci izenship and Immigra ionServices, or USCIS, more han 225,000 employers use E-Veri y, wi h an addi ional1,000 businesses signing up each week.3

Since 2007, all newly hired ederal employees are required o be screened hroughE-Veri y, and since 2009, many ederal con rac ors and subcon rac ors are required ouse he sys em as well.4 Five s a esArizona, Georgia, Mississippi, Sou h Carolina, andU ahhave made E-Veri y manda ory or all public and priva e employers, and eighaddi ional s a es manda e i s use or some por ion o heir employers (mainly or hiringa s a e and local agencies, as well as s a e con rac ors.) wo o her s a esPennsylvania

and ennesseeencourage use o E-Veri y, al hough i is no manda ory.5

Te SupremeCour recen ly upheld Arizonas righ o make E-Veri y manda ory across he s a e, in

he caseChamber of Commerce v.Whiting .6

How it works

Businesses ha enroll in E-Veri y submi each employees eligibili y in orma ion, cur-ren ly ound on he I-9 ormwhich includes, bu is no limi ed o Social Securi y number, name, da e o bir h, ci izenship s a us, and alien numberover he In erne . SSA

and USCIS hen check he da a agains heir records. (see Figure 2) I he in orma ionma ches he governmen records, he employer receives ins an proo o au horiza ion.I here is a misma ch, he employer rs has he oppor uni y o check ha he in orma-

ion was en ered correc ly, and hen receives a en a ive Noncon rma ion, or NC, which indica es ha he worker has he righ o con es he nding. (Nonci izens wi hpic ures on le in he DHS da abase have heir pic ure sen o he employer or con r-ma ion ha he employee is who hey say hey arei.e. ha here is no iden i y raud.)

Under he curren sys em, a er a NC has been issued, he employer is legally obliga edo in orm he employee, who hen has eigh working days o con ac SSA and/or USCISo sor ou he mater.7 I he worker ails o con es , or canno correc his or her records,

E-Veri y sends a Final Noncon rma ion, or FNC. Employers are expec ed by law o reanyone who receives a FNC.8

Expanding E-Veri y

or use by all U.S.

businesses, romthe mom-and-pop

grocery store, to the

biggest employers

in the nation,

presents onerousand expensive

challenges.


4/16


Large numbers of errors and limited effectiveness

A 2008 Governmen Accoun abili y O ce repor ound signi can challenges oimplemen ing E-Veri y, primary among hem error ra es and privacy concerns wi h useo ederal governmen da abase in orma ion. Error ra es have improved since 2008, bu

he sys em is s ill no oolproo . A December 2009 independen es ima e commissioned by USCIS and under aken by Wes a ound ha E-Veri y had an overall error ra e o 4.1 percen , signi can ly down rom he 8.4 percen error ra e o 2004.9 Tis overall ra e

ells only one par o he s ory. o ge a rue sense o E-Veri ys opera ional capaci y, wemus look a he accuracy ra e or au horized and unau horized workers.

Figure 2

The E-Verify process

* 1.1 percent o all cases require immigration status veri cation, which usually occurs within 24 hours.** SSA or name or Social Security Number mismatch, USCIS or noncitizen immigration document mismatch. Some people will be required to con rm with both agencies.*** .01 percent contest, but are still ound to be unauthorized.Source: Westat, Findings o the E-Veri y Program Evaluation, December 2009.

Employee receivestemporary noncon rmation

Employer enters new worker in ormation

(instant results*)

? TNC

Employee receives nalnoncon rmation and loses job

FNC

Employee does not contestnding within eight days

Employee contests nding atlocal SSA ofce or calls USCIS**

Con rmed

Con rmed***


5/16


Authorized worker errors

If E-Verify was made mandatory more than three-quarters of a million legal work-

ersincluding U.S. citizenswould lose their jobs because of the systems error rate. Approxima ely 0.8 percen o all U.S. residen s who are ci izens or legally eligible o work in he coun ry receive an erroneous NC. A small por ion o hese workers,

abou 0.3 percen , are able o success ully con es heir ndings, and gain proo o work au horiza ion. Te remaining 0.5 percen are unable o correc heir records andreceive an equally erroneous FNC.10

Tese are American workers, legally au horized and o herwise innocen , who will ul i-ma ely lose heir jobs. A nal error ra e o only 0.5 percen may no seem like a par icu-larly large number, bu wi h an es ima ed 154,278,000 workers across he coun ry, ha

ransla es ou o jus over 770,000 jobs los .11

And here is every reason o sugges ha he rue error ra e or E-Veri y is ar higher han

ha repor ed by Wes a s s a is ical modeling. While Wes a s gures are reliable, hey u ilize only a small sampling o E-Veri y queries (be ween April and June o 2008) o build heir heore ical models.12 Ac ual resul s may vary widely, and i so, would signi -can ly increase he cos s and number o ordinary Americans a ec ed by E-Veri y.

Unauthorized worker errors

Te sys em has ar poorer resul s when i comes o unau horized workers, ca ching only 46 percen o such workers. Ta means hamore than half of all unauthorized workers

have no problem getting through E-Verify , a nding Wes a chalks up o iden i y raud. E-Veri y only has he capaci y o ma ch legal records wi h hose submited by he employeei does no de ec iden i y he . I a worker submi s a validSocial Securi y number, bu no his or her own number, he sys em re urns a work au horiza ion.13 We as a na ion have o ask ourselves: can we accep hree-quar ers o a million Americans losing heir jobs or a sys em ha ca ches unau horized workersless han 50 percen o he ime?

And, here is every reason o believe ha places wi h a high percen age o immigran andna uralized ci izens would have a higher number o problems wi h a sys em like E-Veri y.

According o Wes a ,naturalized citizens are more than 30 times more likely to receivea TNC than U.S.-born workers .14 Wha hese ndings ell us is ha areas wi h higherconcen ra ions o immigran s and new Americans will have a harder ime coping wi h

he e ec s o E-Veri y.

A nal error rate o

only 0.5 percent

may not seem likea particularly large

number, but with an

estimated 154,278,00

workers across

the country, thattranslates out to just

over 770,000 jobs los


6/16


Higher error rates in Los Angeles County

Los Angeles Coun y provides a serious no e o cau ion ha he real error ra es may bear higher han hose ound by Wes a . Te coun y began using he Basic Pilo Program

(rebranded as E-Veri y in 2007) or all new public employees in Sep ember o 1998. A recen s udy o he coun ys experiences under E-Veri y ound ha or he vas majori y

NCs issued, and even he majori y o FNCs issued, E-Veri y, ra her han he employee, was in he wrong.15

In 2008 or example, 2.6 percen o all hires (254 ou o 9,958) received a NC. Moso he employees who received a misma ch were able o resolve heir s a us, so only 27 o al employees received an FNC. S ill, L.A. Coun y ul ima ely only ermina ed six employees because o work ineligibili y; he o her 21 FNCs were ound o be in error.In 2009, here were 79 NCs issued, (1.8 percen o he 4,397 queries) bu only oneperson was ermina ed because o ineligibili y.16

Averaging ou he percen age o incorrec NCs rom 2008 and 2009 brings he errorra e or legally au horized workers in L.A. Coun y o 2.3 percen ar higher han he0.8 percen gure Wes a ound.If the national error rate ends up being closer to LACountys than to Westats, 3,548,601 total individualsalmost three times as many as

previously estimatedwould receive an erroneous TNC. 17

We now urn o he cos s rom E-Veri y or individual Americans, employers, and heederal governmen .

The costs of E-Verify

High costs are a jobs tax on workers

Te E-Veri y sys em imposes wha is e ec ively a jobs ax on ordinary Americans, whoshoulder he burdens o acquiring he proper documen a ion needed or E-Veri y pro-cessing, as well as resolving NCs. While he curren employmen veri ca ion process,using I-9 orms, allows or a range o documen s o prove iden i ca ion, he E-Veri y sys-

em requires ha employers accep only iden i ca ion ha con ains a pic ure.18

According o a 2008 ederal governmen regula ory impac analysis, or IA, on aproposal o manda e E-Veri y use or ederal con rac ors, 0.5 percen o all people run

hrough E-Veri y do no curren ly have a pho o ID, and would need o acquire oneo use he sys em.19 Using he IA calcula ion,we estimate that more than 770,000

people 20 will be required to spend a minimum of $128 ( or workers a he ederal mini-mum wage,)on average $225 ( or workers a he na ional average hourly wage,)andas much as $429 ( or workers a he average governmen con rac salary)in lost wagesand transportation costs to get a proper ID card. Tese cos s would come ou o he

The E-Veri y system

imposes what is

e ectively a jobs

tax on ordinary

Americans, who

shoulder the burdens

o acquiring the

proper documentatio

needed or E-Veri y

processing, as well a

resolving Tentative

Noncon rmations.


7/16


employees own pocke , and do no ake in o accoun ancillary cos s, such as arrangingor childcare needs.21 As a Brennan Cen er or Jus ice repor argues, poor and minor-

i y workers dispropor iona ely lack pho o iden i ca ion, and as such will be especially a ec ed by manda ory E-Veri y.22 While no all workers will make as much as govern-men con rac ors, or as litle as he ederal minimum wage, mos Americans lacking apho o ID will have o spend close o $225 o heir own money.

Once he check is run hrough he sys em, 0.8 percen (using Wes a s error ra e) o2.3 percen (using LA Coun ys error ra e) o all legally au horized employees willreceive a NC, aler ing hem ha heir submited in orma ion does no ma ch heo cial governmen records. Mos NCs mus be resolved in person a a Social Securi y

Adminis ra ion o ce.23 Using he IA calcula ions,we estimate that it will cost each of the 1.2 to 3.5 million legally authorized workers on average $190 of their own money

in lost wages and travel time to resolve. 24 Unlucky individuals who need a pho o ID andreceive a NC could end up spending $415 jus o gain access o a job ha hey havealready secured.

Es ima es o he cos o resolve a NC a an SSA o ce will also be ar higher or cer ainindividuals. Te IA es ima es are based on he average dis ance ha i would ake anindividual o ravel o he neares SSA o ce, calcula ed a 60 miles round rip. I , orexample, you lived in a more remo e area o he coun ry, say Camp Wood, exas, hecloses SSA o ce would be in Kerrville, exas. esolving a NC in Kerrville wouldrequire raveling more han 90 milesin each direction , adding an addi ional cos o $70. I you live in Hyannis, Nebraska, he neares SSA o ce is in Nor h Plate, Nebraska, requir-ing roughly 110 miles o ravelin each direction , adding an addi ional cos o $94.25

Now imagine ha you are one 99ers,26 one o he housands o Americans who have

exhaus ed he maximum number o weeks allowable on unemploymen insurance.Imagine you have managed o scrape by wi hou a s eady income, and have nally secured a job, only o now be old ha you mus spend a leas $415 jus o be eligible

o work. Clearly his is he wors -case scenario, bu how many Americans are weprepared o ax in order o expand a governmen program ha works less han hal he

ime or unau horized workers?

Additional concerns for workers

An individual canno legally be red or receiving a NC, and mus be re ained pend-ing nal veri ca ion o his or her work s a us. We worry, however, ha unscrupulousemployers will ei her demo e, ail o pay, or o herwise discrimina e agains an employee who receives a NC. Indeed, 42 percen o workers who received a NC in 2009 wereno no i ed o he s a us by heir employers, robbing employees o he abili y o con es ,and o he abili y o ul ima ely keep heir job. Wes a ur her ound ha a por ion o

hose employers who did in orm heir workers abou NCs did no explain o hem heprocedures or con es ing, or he eigh -day window in which an employee may con es .27

42 percent o

workers who

received a Tentative

Noncon rmation

in 2009 were not

noti ed o the statu

by their employers,

robbing employees

o the ability to

contest, and o the

ability to ultimately

keep their job.


8/16


Since he Legal Work orce Ac o 2011 requires employers o veri y he s a us o heiremployees prior o, or on he da e o hiring, we believe ha many employers will simply choose he more expedien rou e o no hiring an employee who receives a NC, ra her

han in orming hem o heir s a us.28 When veri ca ion is par o a pre-screening pro-cess, he incen ives o no i y he employee are ar lower.

Losing your job over an erroneous NC or FNC has real consequences: I he SocialSecuri y Adminis ra ion deems you o be an ineligible employee, you would also beineligible or unemploymen bene s. On op o he hardship o losing your job, you would no even be able o rely on he unemploymen insurance sa e y ne while sor ingou your in orma ion wi hin he SSA sys em, or searching or a new posi ion.

Implementation costs are crushing for employers

Employers would shoulder much o he burden o implemen ing E-Veri y i i was made

manda ory or all businesses in he Uni ed S a es. A recen Bloomberg Governmens udy ound haE-Verify would have cost small businesses $2.6 billion had it beenmandatory in 2010. 29 Tese companies represen 99.7 percen o all employers, and havecrea ed 64 percen o ne new jobs over he pas decade and a hal , according o he U.S.Small Business Adminis ra ion.30 Wi h an unemploymen ra e a 9.1 percen in May 2011,and he economic recovery o small businesses s ill precarious, does i really make sense

o burden our na ions jobs crea ors wi h an addi ional $2.6 billion per year?31

Bloomberg es ima es ha he average cos o run E-Veri y or a small business will bearound $435 per year. Te s ar -up cos s, however, can be much higher. Te govern-

men s egula ory Impac Analysis iden i ed a number cos s associa ed wi h imple-men ing E-Veri y, including cos s due o:

Hiring a human resources manager o enroll he business in E-Veri y e aining legal counsel o review he Memorandum-o -Unders anding required or

access o E-Veri y Paying employees or ime needed o review exis ing I-9 employee in orma ion Acquiring he necessary compu er equipmen , prin er, and In erne access raining employees o run he sys em32

Te IA also es ima ed cos s incurred or he rs year in which governmen con rac ors(covered under he rule subjec o analysis) used E-Veri y:

Businesses wi h 10 employees would have o pay on average $1,254 Businesses wi h 50 employees would pay $3,163 Businesses wi h 100 employees would pay $5,515 Businesses wi h 500 employees would pay $24,422


9/16


Te ini ial year, he IA poin s ou , is expec ed o be he year wi h he highes compli-ance cos , as he con rac or is incurring bo h he s ar -up cos s o enrolling in E-Veri y as well as he cos s o veting new employees hrough he E-Veri y sys em.33

All businesses using E-Veri y ace serious cos s and challenges o implemen ing hesys em, al hough he sys ems cos s o small businesses are po en ially more debili a -

ing. How many small businesses and mom-and-pop shops will have o close, or will be unable o open in he rs place, because hey canno a ord o spend more han a

housand dollars jus o s ar veri ying he work s a us o heir employees?34

Additional costs for employers

Bo h he Bloomberg and IA es ima es only include he direc cos s o employers orseting up he sys em and running employees hrough i . Tey do no , however, akein o accoun any o he ancillary cos s associa ed wi h E-Veri y, such as los produc ivi y

rom employees who have o ake ime o o work o x a NC a a local Social Securi y Adminis ra ion o ce. Tey also do no ake in o accoun he cos o re raining a new employee a business would have o hire i a legally au horized American worker already on s a receives an erroneous FNC and mus be red. Tese cos s may be di usedamong many workers or large businesses, bu or he 60 percen o small businesses wi h ewer han ve employees, he re raining expenses can be devas a ing.

Impor an ly as well, E-Veri y is no a magical pill ha immunizes companies romprosecu ion, rom Immigra ion and Cus oms En orcemen raids, or rom cos ly legal

ees. ake he case o Pilgrims Pride Corpora ion, he larges chicken producer in he

Uni ed S a es. ICE raided ve Pilgrims Pride si es in April o 2008 and arres ed morehan 300 individuals on suspicion o iden i y he and unau horized presence in heUni ed S a es. Te company prided i sel on having each and every one o i s plan senrolled in E-Veri y, and had relied on he ICE Bes Hiring Prac ices in designingi s immigra ion compliance prac ices. Since E-Veri y does no de ec iden i y raud,

he company was s ill open o charges o hiring unau horized workers.Even withhigh standards and E-Verify usage, Pilgrims Pride ultimately settled with the federal

government to avoid criminal chargesto the tune of $4,500,000. 35

While E-Veri y does no pro ec employers agains raids or audi s, i also has resul edin added legal burdens o employers. One lawyer experienced in E-Veri y claims, who wished o remain anonymous, s a ed ha he sys em is a gold mine or lawyers becauseo he high cos s o seting up a compliance sys em, and o ending o ederal governmenaudi s. Arranging an in ernal sys em o comply wi h work veri ca ion requiremen s is oneo bigges and mos cos ly aspec s o implemen ing E-Veri y. Te U.S. clo hing re ailer

Abercrombie & Fi ch, or example, was ned jus over $1 million in 2010 or discrepan-cies in he companys elec ronic I-9 record keeping sys ema process similar o ha

E-Veri y is not amagical pill that

immunizes companie

rom prosecution,

rom Immigration a

Customs En orcemeraids, or rom costly

legal ees.


10/16


which would be necessary or using he E-Veri y sys emillus ra ing ha keeping heype o records necessary or E-Veri y is no simple mater, and can become qui e cos ly.36

Te same lawyer poin ed ou ha even he hrea o an audi can a ec he work orce, asemployees ge wind o a ederal governmen ac ion and leave he worksi e, harming pro-duc ion and ul ima ely cos ing he employer signi can ly.37

More basically, as an In erne -based sys em, E-Veri y requires ha businesses ac ually have he capabili y o access he In erne . While Presiden Obama made broadbandIn erne access a hallmark o his 2011 S a e o he Union Address,38 he ac o he ma -

er is ha many homes and businesses in he Uni ed S a es s ill lack In erne connec iv-i y. Exac gures are no available, bu we do know ha high-speed In erne coverageis lower in rural areas, and ha many small businesses will s ruggle o comply wi h henew demands.39 In Wes Virginia, or example, only an es ima ed 75 percen o house-holds and businesses are connec ed o broadband, while in Michigan only 70 percenare connec ed. In ennessee, only 65 percen o businesses subscribe o broadband.40

We believe ha he governmen will ul ima ely be orced o nd a solu ion or heseIn erne -less employers, which will cos signi can amoun s o money. As an example o aproposed solu ion, he Concep ual Proposal or Immigra ion e orm pu or h by Sens.Harry eid (D-NV), Chuck Schumer (D-NY), and ober Menendez (D-NJ) in Aprilo 2010, proposed ha Uni ed S a es Pos O ces and o her governmen o ces be ted wi h he echnological capabili y or employers o come in and veri y he s a us o heir workers. One can only imagine how much ha would cos he ederal governmen .41

E-Verify would slash tax revenue and require massive federal spending

Te cos s o he ederal governmen o manda ing E-Veri y are wo old: he revenue losrom undocumen ed workers no longer paying axes, and he amoun o money neededo opera e he sys em.

Revenue lost due to E-Verify

An es ima e by he nonpar isan Congressional Budge O ce o he SAVE Ac o 2008,H. . 4088, ound hamandating E-Verify across the nation without legalizing theundocumented workforce would result in $17.3 billion in lost revenue over 10 years .

According o he CBO, he decrease largely refec s he judgmen ha manda ory veri-ca ionwould resul in an increase in he number o undocumen ed workers being

paid ou side he ax sys em.42

Mandating E-Veri yacross the nation

without legalizing

the undocumented

work orce would res

in $17.3 billion in losrevenue over 10 year


11/16


a her han accomplish he res ric ionis goal o atri ion hrough en orcemen o making li e so di cul or unau horized immigran s ha hey leave he coun ry 43 heCBO es ima ed ha a good number o he people curren ly paying axes and con ribu -ing o he economy would be paid o he books in he underground cash economy, wi hno ederal governmen ax gains. And his revenue is no rivial. A s udy by he Ins i u e

or axa ion and Economic Policy ound ha unau horized immigran s paid a o al o

$11.2 billion in s a e and local axes in 2010.44 Te high cos o he manda ory E-Veri y provision was one o he primary ac ors ha sank he SAVE Ac .45

Costs to operate E-Verify

In a 2008 Governmen Accoun abili y O ce repor ,the Department of HomelandSecurity estimated that mandating E-Verify for all employers would cost between

$765 million (i only new hires were run hrough he sys em)and $838 million (i all employees, curren and new, were veri ed) or FY 2009 o FY 2012. The Social

Security Administration estimated it would cost $281 million , and require 700addi ional employees be ween FY 2009 and 2013.46

A more recen GAO repor , ci ing s a is ics rom U.S. Ci izenship and Immigra ionServices, or USCIS, argues ha even re aining E-Veri y as avoluntarysys emwi houa manda e ha E-Veri y be used across he coun rywill cos $508 million hrough FY 2020. Te GAO repor deemed even his high es ima e o be only par ially accura eand minimally credible because o he lack o independen cos es ima es and because

he gure ails o accoun or a range o o her po en ial cos s o he ederal govern-men .47 Te GAO speci cally s a ed ha USCISs cos es ima es do no reliably depic

curren E-Veri y cos and resource needs or cos and resource needs or manda ory implemen a ion. SSA did no are much beter, wi h he GAO concluding ha whileSSAs cos es ima es subs an ially depic curren E-Veri y cos s and resource needs, SSA has no ully assessed he ex en o which i s workload cos s may change in he u ure.48

In ac uali y, i will probably cos he governmen ar more o se up he massive bureaucracy needed o service and main ain E-Veri y across he coun ry. Te govern-men will be orced o crea e his unwieldy new bureaucracy o iden i y jus 46 perceno unau horized workers.49 Tis increase in he size o he ederal governmen and ingovernmen spending will come a a ime when Congress claims o wan o cu back and reduce he de ci .

Te cos s o hire new personnel, increase echnological capaci y, and veri y new hireshave been ac ored in o he cos es ima es repor ed in he above GAO repor . Bu mak-ing E-Veri y manda ory across he Uni ed S a es will unques ionably rigger cos s aboveand beyond hose ha direc ly a ec he E-Veri y sec ions o he U.S. Ci izenship andImmigra ion Services and he Social Securi y Adminis ra ion.

Department oF homelanD

security costs

$765 million

social security

aDministration costs

$281 million


12/16


Firs and oremos are he cos s o he governmen o individuals xing heir SSA NCsand procuring pho o IDs. I E-Veri y is made manda ory, anywhere rom 1,234,296

Americans (using Wes a s error ra e o 0.8 percen ) o 3,548,601 Americans (using LA Coun ys error ra e o 2.3 percen ) will receive an erroneous NC, and be required ogo o an SSA o ce o resolve i .50 We es ima e ha i will ake one ull hour o ime on

he par o an SSA worker o x a NC.51 Conserva ively es ima ing he hourly wages o

SSA Claims epresen a ives, he o cials who es ablish Social Securi y eligibili y, i willcos he governmen $14.90 o work ime o resolve each individual claim.52 Multiplyingthat by the total number of erroneous claims brings the total cost to the federal gov-

ernment just to resolve TNCs between $18,391,010 and $52,874,155. 53

Hourly pay ra es or employees a Depar men s o Mo or Vehicles, one o he loca ions where an es ima ed 770,000 Americans will be required o ob ain pho o ID, vary by s a e, bu we can assume ha cos s will be similarly high. And addi ional work hoursand salary cos s are no he only variable he burden o processing millions o SSA misma ches could easily overwhelm already overburdened SSA o ces. Tese cos s

do no even ake in o accoun he necessi y o de ending he ederal legisla ion againslawsui s, or o seting up and running a review board o ensure ha errors are correc edin a imely ashion.

Finally, he Legal Work orce Ac o 2011 signi can ly ex ends he manda e o DHSand SSA in opera ing E-Veri y. Sec ion 10 o he bill ins ruc s bo h agencies o crea ea program in which Social Securi y accoun numbers ha have been iden i ed o besubjec o unusual mul iple use[ o] be blocked rom use.54 In addi ion o blockingmisused Social Securi y numbers, bo h agencies are required o crea e a sys em whereby individuals who su er rom iden i y raud can pe i ion or heir Social Securi y number

o be suspended or use in he sys em. SSA would also be required o: Issue no-ma ch leters on every worker who i iden i es as having a misma ch

(over 10 million55) Genera e leters o every employer wi h a mis ake on heir W-2 Send leters o workers when heir Social Securi y number is used a more

han one job Send leters o he employer o workers suspec ed o using a alse Social

Securi y number56

While all o hese provisions are admirable, hey will heavily increase he workloadso bo h agencies, require many more ederal employees o be hired o deal wi h hedemand, and raise he already high cos s o implemen ing he program by hundredso millions o dollars.

I E-Veri y is made

mandatory, anywhere

rom 1,234,296 Ame

cans to 3,548,601

Americans will recei

an erroneous Tenta-

tive Noncon rmation

and be required to go

to an SSA ofce

to resolve it.


13/16


The better solution: Phasing in E-Verify, adding triggers, and legalizingundocumented workers

Immedia ely implemen ing E-Veri y or all employers across he coun ry meansmanda ing a program ha will knock U.S. workers o he payrolls and in o he under-ground economy, reward unscrupulous employers, encourage iden i y raud, and ail

o de ec unau horized workers. I will undermine he na ions core economic andsecuri y in eres s.

Here are our recommenda ions or a more pragma ic and e ec ive solu ion.

Phase E-Verify in gradually over a period of five to 10 years. Tis would ensureha he U.S. Ci izenship and Immigra ion Services, or USCIS, and Social Securi y

Adminis ra ion, or SSA, are able o mee he echnical and in ras ruc ure challenges wi h scaling up he sys em while con inuing o improve heir accuracy ra es.

Ensure that no small business would be required to join E-Verify until USCIS andSSA can prove an accuracy rate of 99.99 percent for legally authorized Americans.

We s rongly believe ha no small business should be required o use he E-Veri y sys em un il he error ra e or legally au horized Americans is less han .01 percen .No American should lose their job simply because of a government mandated

system. By puting a rigger in o he bill, Congress will ensure ha he sys em only ca ches hose people wi hou legal s a us, ra her han ordinary, innocen Americans.Te sys em mus also have an easily accessible review process, so ha mis akes arecaugh and xed in a imely manner.

Fur hermore, by beginning wi h large businesses ( hose wi h more han 500 employ-ees, as de ned by he Small Business Adminis ra ion) Congress would ensure ha allo he kinks are worked ou o he sys em be ore small businesses hose ha wouldincur he heavies nancial cos swould be required o join. We suppor gran inghardship waivers or hose businesses wi h ewer han 20 employees, as well as busi-nesses in areas ha lack subs an ial broadband In erne coverage.

Apply E-Verify only to new hires. Limi ing E-Veri y only o new hires will similarly decrease he s rains on USCIS and SSA, wi hou sacri cing coverage.

Join E-Verify with a program establishing a legal workforce. Manda ory E-Veri y mus be paired wi h a program ha ensures he curren work orce is au horized o work. Curren ly, he sys em has an error ra e or undocumen ed immigran s o 54 per-cen , meaning ha more han hal o unau horized workers have no problem makingi hrough veri ca ion. A program requiring all o he undocumen ed individuals cur-ren ly in he Uni ed S a es o regis er and undergo background checks will cu downon iden i y raud and lead o higher accuracy ra es.

A program

requiring all o the

undocumented

individuals currently

in the United States

to register and

undergo background

checks will cut down

on identity raud

and lead to higher

accuracy rates.


14/16


Tis legaliza ion program would ollow he guidelines ha he presiden laid ou inhis recen Blueprin on Immigra ion e orm, would include ough bu air penal ies, would require immigran s o pay back axes, and learn English and civics, and wouldensure ha no undocumen ed immigran s cu he line by gaining legal s a us aheado people already wai ing or visas. As i curren ly s ands, immigran s who are kickedo he legal rolls wi h manda ory E-Veri y will simply move in o he in ormal economy

(a a cos o he ederal governmen o $17.3 billion, according o he CongressionalBudge O ce,) where hey pay no income or payroll axes. A program o earned legal-iza ion will bring all o hese workers ou o he shadows and will make sure ha hey,and heir employers, con ribu e ully o he ax base.57

As curren ly opera ed, E-Veri y imposes a jobs ax on individuals and businesses, andcos s he ederal governmen a signi can amoun o money. I does no have o be so,nor do ordinary Americans have o lose heir jobs in he service o ca ching unau hor-ized immigran s.

Philip E. Wolgin is an Immigration Policy Analyst at the Center for American Progress.He would like to acknowledge Marshall Fitz, Director of Immigration Policy, and Tyler Moran, Policy Director at the National Immigration Law Center, for their invaluable research andediting assistance.


15/16


1 Congressman Lamar Smith, Chairman Smith Introduces Legal Work orceAct, Press Release, June 14, 2011, available at:http://lamarsmith.house.gov/News/DocumentSingle.aspx?DocumentID=246558.

2 Jason Arvelo, Free E-Veri y May Cost Small Businesses $2.6 Billion: Insight,Bloomberg Government , January 27 2011, available at: http://www.iandcsolutions.com/uploaded/ le/%C2%B9Free%C2%B9%20E-Veri y%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pd .

3 United States Citizenship and Immigration Services, What is E-Veri y?,available at: http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543 6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRD.

4 United States Government Accountability O ce, Employment Veri ca-tion: Federal Agencies Have Taken Steps to I mprove E-Veri y, but Signi -cant Challenges Remain, GAO-11-146, December 2010, 2. Available at:http://www.gao.gov/new.items/d11146.pd .

5 On state policies toward E-Veri y, see the primers on the website o theNational Immigration Law Center: http://www.nilc.org/immsemplymnt/ircaempveri /eev023.htm. Illinois passed a law in 2007 that limited the useo E-Veri y within the state, but a lawsuit overturned much o the law. As itstands, Illinois preempts localities rom requiring employers to use E-Veri y,though they are welcome to do so on their own. United States of America v. State of Illinois, No. 07-3261, March 12, 2009 (U.S.D.C Central DistrictIllinois), available at:http://www.veri cationsinc.com/pd /US-v-Illinois.pd .

6 Chamber o Commerce v. Whiting, 563 U.S. ___ (2011), available at:http://www.law.cornell.edu/supct/html/09-115.ZS.html . Note that the decision

was a narrow ruling, which ound the law consistent with Congresss in-tent to allow states to maintain their traditional role in licensing decisions.It does not speak to the larger issues o ederal preemption o state andlocal immigration laws.

7 Note that some individuals will be required to con rm their status withboth SSA and USCIS, or example, a naturalized citizen who may not have

orwarded his or her in ormation to the Social Security Administration.

8 In act, 95.3 percent o all people run through the E-Veri y system areinstantly veri ed as work authorized, while another 1.1 percent areauthorized by an Immigration Status Veri er (ISV) at DHS, usually withinone business day. The remaining 3.6 percent receive a TNC. Most o thosewho receive a TNC do not contest the ndings, and so 3.1 percent o allE-Veri y queries result in an FNC. Under the current system, once issueda TNC the employee has eight working days to contact the appropri-ate government agency, and then the agency has 10 working days toresolve the p roblem. Westat, Findings o the E-Veri y Program Evaluation,December 2009, xxv-xxvi. Available at:http://www.uscis.gov/USCIS/E-Veri y/E-Veri y/Final%20E-Veri y%20Report%2012-16-09_2.pd .

9 Another .01 percent contest their TNCs, but are still deemed ineligible towork. Westat, Findings, xxix-xxx. United States Government AccountabilityO ce, Employment Veri cation: Challenges Exist in Implementing a Man-datory Electronic Employment Veri cation System, Statement o Richard M.Stana, Director Homeland Security and Justice Issues, GAO-08-729T, May 6,2008, available at: http://www.gao.gov/new.items/d08729t.pd .

10 Figures based on the ndings o the National Immigration Law Center(NILC). Statement o Tyler Moran, Policy Directory, National ImmigrationLaw Center, House Committee on Ways and Means, Subcommittee onSocial Security, Hearing on the Social Security Administrations Role inVeri ying Employment Eligibility, April 14, 2011, available at:http://www.nilc.org/immsemplymnt/SSA_Related_In o/SSA-subcommittee-Moran-testimony-4-14-11.pd .

11 Ibid. NILC estimates that there are a total o 154,287,000 workers in theUnited States, so multiplied by 0.5 percent = 771,435. On E-Veri y anderror rates, see also: Doris Meissner and Marc R. Rosenblum, The NextGeneration o E-Veri y: Getting Employment Veri cation Right, (Wash-ington: Migration Policy Institute, July 2009), available at: http://www.migrationpolicy.org/pubs/Veri cation_paper-071709.pd .

12 According to Westat, Ideally, calculations o system accuracy would bebased on the true employment authorization status o the workersveri ed, so that their true status could be compared with the E-Veri yprogram nding. I this in ormation were available, calculating accuracyand inaccuracy rates would be a simple ratio o the E-Veri y program nd-ing to the total number o workers with that status. However, since it isnot available, it was necessary or Westat to use estimates o the numbero workers in each status. The Westat evaluation team used models todevelop estimates o these numbers. Westat, Evaluation o the E-Veri yProgram: USCIS Synopsis o Key Findings and Program Implications,January 28, 2010, 3. Available at: http://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20o %20the%20E-Veri y%20Program.pd .

13 Westat, Findings, xxx-xxxi.

14 Westat, Findings, xxxv-xxxvi.

15 William T. Fujioka, Chie Executive O cer, Report on [L.A.] Countys Useo E-Veri y System, March 10, 2010, availab le at:http:// le.lacounty.gov/bc/q1_2010/cms1_143429.pd .

16 Ibid.

17 Ibid. The County reported that 254 people out o 9,958 received a TNC in2008, but only two employees had not resolved their work authorizationstatus by the time o the repor tone was terminated, and one was stillin the process o xing the problem. That leaves 252 erroneous TNCs. In2009, 79 people received a TNC out o 4,397, but only one employee wasterminated. The rest were ultimately deemed authorized, which leaves 78erroneous TNCs. (252 + 78) / (9,958 + 4,397) = 2.3%. Statistics on 3.

18 Note that many, but not all, o the documents that establish identity onthe I-9 orm contain a photo. Items such as a Voters Registration Cardtypically do not contain a picture. Form available at: http://www.uscis.gov/ les/ orm/i-9.pd . On the E-Veri y photo ID requirement see: UnitedStates Citizenship and Immigration Service, Companion to Form I-9,available at: http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a-3e5b9ac89243c6a7543 6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRD.

19 Regulatory Impact Analysis, Employment Eligibility Veri cation (FederalAcquisition Regulation Case 2007-013), Final Rule, October 1, 2008, 42.

20 See tn 12.

21 The RIA estimates that each person will have to travel an average o 60miles, round trip, to get an ID, which they calculate at a rate o $0.585 per

mile, or a cost o $35.10. They estimate that the average cost o a photoID is $35, and that an employee w ill have to spend 8 working hours toacquire the ID.

Using the ederal hourly minimum wage data, we calculate that anindividual in this group will spend $58 in lost wages ($7.25 * 8). Takentogether, $58 + $35 + $35.10 = $128.10.

Using the average hourly wage data or American workers rom April2011 provided by the St. Louis Federal Reserve Bank, $19.37 per hour, wecalculate that an individual in this group will spend $154.96 in lost wages($19.37 * 8). Taken together, $154.96 + $35 + $35.10 = $225.06.

Using the average hourly wage or a ederal contractor, $44.90 per hour,we calculate that an individual in this group will spend $359.20 ($44.90 *8) in lost wages. Taken together, $359.20 + $35 + 35.10 = $429.30.

Regulatory Impact Analysis, Employment Eligibility Veri cation, 42 and48. Data on average hourly wages available on the website o the FederalReserve Bank o St. Louis Federal:http://research.stlouis ed.org/ red2/data/AHETPI.txt. Federal minimum wage data available on the website o the U.S. Department o Labor:http://www.dol.gov/.

22 Brennan Center or Justice, Citizens Without Proo : A Survey o AmericansPossession o Documentary Proo o Citizenship and Photo Identi cation(November 2006), available at: http://www.brennancenter.org/page/-/d/download_ le_39242.pd .

23 TNCs that come rom USCIS, and deal with immigration documentmismatch, may be con rmed over the phone with a USCIS o ce. Sincethis 0.8 percent re ers to legally authorized workers, we believe that mosto the errors will be with the SSA data, rather than the USCIS.

24 1.2 million, assuming the Westat error rate o 0.8 percent; 3.5 millionassuming the LA County error rate o 2.3 percent. The RIA estimates thateach person will have to travel an average o 60 miles, round trip, to getto an SSA o ce, which they calculate at a rate o $0.585/mile, or a costo $35.10. They estimate that an employee will have to spend 8 workinghours to resolve a TNC. Unlike with Photo IDs, where a disproportionatenumber o people wi thout proper identi cation are without means, TNCsa ect all Americans. Thus we use the average hourly wage or all Ameri-cans or April 2011 provided by the St. Louis Federal Reserve Bank, $19.37per hour. We calculate that the average individual will spend $154.96

in lost wages ($19.37 * 8). Taken together, $154.96 + $35.10 = $190.06.Regulatory Impact Analysis, Employment Eligibility Veri cation, 47-48.Data on average hourly wages available on the website o the FederalReserve Bank o St. Louis Federal:http://research.stlouis ed.org/ red2/data/AHETPI.txt.

25 Estimates based on driving directions rom Google Maps, and the SocialSecurity O ce Locator on the Social Security Administrations website:https://secure.ssa.gov/apps6z/FOLO/Controller . Additional costs basedon the calculation o $0.585 per mile above the 60 miles built into thebaseline RIA assumption. See tn 22.

26 On the 99 week maximum, see, or example: Kelly Evans, UnemploymentExtension Adds Up to 99 Weeks o Bene ts.Real Time Economics Blog, No-vember 6, 2009, available at: http://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-o -bene ts/ .

Endnotes
http://lamarsmith.house.gov/News/DocumentSingle.aspx?DocumentID=246558http://lamarsmith.house.gov/News/DocumentSingle.aspx?DocumentID=246558http://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.gao.gov/new.items/d11146.pdfhttp://www.nilc.org/immsemplymnt/ircaempverif/eev023.htmhttp://www.nilc.org/immsemplymnt/ircaempverif/eev023.htmhttp://www.verificationsinc.com/pdf/US-v-Illinois.pdfhttp://www.law.cornell.edu/supct/html/09-115.ZS.htmlhttp://www.law.cornell.edu/supct/html/09-115.ZS.htmlhttp://www.uscis.gov/USCIS/E-Verify/E-Verify/Final%20E-Verify%20Report%2012-16-09_2.pdfhttp://www.uscis.gov/USCIS/E-Verify/E-Verify/Final%20E-Verify%20Report%2012-16-09_2.pdfhttp://www.gao.gov/new.items/d08729t.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.migrationpolicy.org/pubs/Verification_paper-071709.pdfhttp://www.migrationpolicy.org/pubs/Verification_paper-071709.pdfhttp://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdfhttp://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdfhttp://file.lacounty.gov/bc/q1_2010/cms1_143429.pdfhttp://file.lacounty.gov/bc/q1_2010/cms1_143429.pdfhttp://www.uscis.gov/files/form/i-9.pdfhttp://www.uscis.gov/files/form/i-9.pdfhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://www.dol.gov/http://www.brennancenter.org/page/-/d/download_file_39242.pdfhttp://www.brennancenter.org/page/-/d/download_file_39242.pdfhttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://research.stlouisfed.org/fred2/data/AHETPI.txthttps://secure.ssa.gov/apps6z/FOLO/Controllerhttp://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-of-benefits/http://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-of-benefits/http://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-of-benefits/http://blogs.wsj.com/economics/2009/11/06/unemployment-extension-adds-up-to-99-weeks-of-benefits/https://secure.ssa.gov/apps6z/FOLO/Controllerhttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://www.brennancenter.org/page/-/d/download_file_39242.pdfhttp://www.brennancenter.org/page/-/d/download_file_39242.pdfhttp://www.dol.gov/http://research.stlouisfed.org/fred2/data/AHETPI.txthttp://research.stlouisfed.org/fred2/data/AHETPI.txthttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=b4059589cdb76210VgnVCM100000b92ca60aRCRD&vgnextchannel=b4059589cdb76210VgnVCM100000b92ca60aRCRDhttp://www.uscis.gov/files/form/i-9.pdfhttp://www.uscis.gov/files/form/i-9.pdfhttp://file.lacounty.gov/bc/q1_2010/cms1_143429.pdfhttp://file.lacounty.gov/bc/q1_2010/cms1_143429.pdfhttp://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdfhttp://www.uscis.gov/USCIS/Native%20Docs/Westat%20Evaluation%20of%20the%20E-Verify%20Program.pdfhttp://www.migrationpolicy.org/pubs/Verification_paper-071709.pdfhttp://www.migrationpolicy.org/pubs/Verification_paper-071709.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.nilc.org/immsemplymnt/SSA_Related_Info/SSA-subcommittee-Moran-testimony-4-14-11.pdfhttp://www.gao.gov/new.items/d08729t.pdfhttp://www.uscis.gov/USCIS/E-Verify/E-Verify/Final%20E-Verify%20Report%2012-16-09_2.pdfhttp://www.uscis.gov/USCIS/E-Verify/E-Verify/Final%20E-Verify%20Report%2012-16-09_2.pdfhttp://www.law.cornell.edu/supct/html/09-115.ZS.htmlhttp://www.law.cornell.edu/supct/html/09-115.ZS.htmlhttp://www.verificationsinc.com/pdf/US-v-Illinois.pdfhttp://www.nilc.org/immsemplymnt/ircaempverif/eev023.htmhttp://www.nilc.org/immsemplymnt/ircaempverif/eev023.htmhttp://www.gao.gov/new.items/d11146.pdfhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=e94888e60a405110VgnVCM1000004718190aRCRD&vgnextchannel=e94888e60a405110VgnVCM1000004718190aRCRDhttp://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://www.iandcsolutions.com/uploaded/file/%C2%B9Free%C2%B9%20E-Verify%20May%20Cost%20Small%20Business%20$2_6%20Billion_%20Insight.pdfhttp://lamarsmith.house.gov/News/DocumentSingle.aspx?DocumentID=246558http://lamarsmith.house.gov/News/DocumentSingle.aspx?DocumentID=246558


16/16

27 Westat, Findings, 153-154. National Immigration Law Center, Statemento Tyler Moran, 4.

28 Legal Workforce Act of 2011, H.R. 2164, Section 2(F).

29 The Bloomberg study de nes a small business as having less than 500employees. Arvelo, Free E-Veri y.

30 Statistics rom the website o the United States Small Business Administra-tion, available at: http://www.sba.gov/advocacy/7495/8420 .

31 Unemployment gures based on the Bureau o Labor Statistics website:http://www.bls.gov/cps/ . United States Small Business Administration,

The Small Business Economy 2010: A Repor t to the President (Washing-

ton: U.S. Govt Printing O ce, 2010). Available at:http://www.sba.gov/sites/de ault/ les/sb_econ2010.pd .

32 Ibid., 29-39.

33 Regulatory Impact Analysis, Employment Eligibility Veri cation, 8-9.

34 Ibid.

35 U.S. Immigration and Customs En orcement, 91 Pilgrims Pride work-ers ace criminal charges in ongoing identity the t probe, PressRelease, April 17, 2008, available at:http://www.ice.gov/news/releases/0804/080417dallas.htm . Pilgrims Pride, Pilgrims Pride IssuesStatement in Response to U.S. Department o Homeland Securitys Im-migration and Customs En orcement Action at Five Company Facilities,Press Release, April 16, 2008, available at:http://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlight =. Letter rom John M. Bales, United States Attorney, Eastern Districto Texas, to Carl Hampe, December 30, 2009. Available at:http://www.law.virginia.edu/pd / aculty/garrett/pilgrimspride.pd .

36 Note that Abercrombie and Fitch was not enrolled in E-Veri y at the time o

the ne. U.S. Immigration and Customs En orcement, Abercrombie andFitch ned a ter I-9 audit, Press Release, September 28, 2010, available at:http://www.ice.gov/news/releases/1009/100928detroit.htm .

37 Phone interview with author, June 6, 2011.

38 The White House, O ce o the Press Secretary, Remarks by the Presidentin State o Union Address, Press Release, January 25, 2011, availableat: http://www.whitehouse.gov/the-press-o ce/2011/01/25/remarks-president-state-union-address .

39 On broadband coverage in rural areas, see Michael J. Copps, BringingBroadband to Rural America: Report on a Rural Broadband Strategy,(Washington: Federal Communications Commission, May 22, 2009).Available at: http://hraun oss. cc.gov/edocs_public/attachmatch/DOC-291012A1.pd .

40 HughesNet, Broadband in West Virginia, (2006), available at: http://busi-ness.hughesnet.com/resources/broadband-in-west-virginia . ConnectMichigan, Broadband & Business, (2010), available at:http://connectmi.org/_documents/MI_BizAssessment.pd . Connected Tennesee, Tenne-sees Technology Trends 2010 (2010), available at: http://connectedten-

nessee.org/research/Tennessee_Technology_Trends_2010.php.41 Harry Reid, Chuck Schumer, and Robert Menendez, Conceptual Proposal

or Immigration Re orm, April 29, 2010, 13. Available at:http://www.po-litico.com/static/PPM154_proposal.html . The ramework uses a slightlydi erent system than the current E-Veri y, the Biometric Enrollment,Locally-stored In ormation, and Electronic Veri cation o Employment(BELIEVE) system, but the process would be the same, the only di er-ence being that each employee would have a biometric Social Securitycard to present to their employers.

42 Letter rom Peter R. Orzag to John Conyers Jr., April 4, 2008. Available at:http://www.cbo.gov/ tpdocs/91xx/doc9100/hr4088ltr.pd .

43 NumbersUSA, Attrition Through En orcement Is the True Middle-groundSolution, available at: http://www.numbersusa.com/content/learn/is-sues/american-workers/attrition-through-en orcement-true-middl.html .

44 Immigration Policy Center, Unauthorized Immigrants Pay Taxes, Too,(2011), available at: http://www.immigrationpolicy.org/just- acts/unau-thorized-immigrants-pay-taxes-too .

45 New York TimesEditorial Board, What Social Security Isnt Meant toDo,New York Times, May 12, 2008, available at:http://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-veri y&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPA.

46 GAO, Employment Veri cation: Challenges Exist, 4.

47 Government Accountability O ce, Employment Veri cation: FederalAgencies Have Taken Steps, 48-49.

48 Ibid., 43.

49 See: Westat, Evaluation o the E-Veri y Program.

50 Ibid. Fujioka, Report on [L.A.] Countys Use o E-Veri y System.

51 According to the Social Security Administration, it takes 20 minutes tocomplete an in-person interview and to update the E-Veri y system torefect proper work authorization. But this 20 minute estimate is only orpeople who have all o their paperwork properly in o rder. For cases thatrequire additional documentation, SSA estimates that the individual willrequire multiple visits. Westat also nds that while many workers cansolve their TNCs in one visit, many others require multiple visits. Thus wehave calculated work time at one hour, rather than only 20 minutes. So-cial Security Administration, Statement o Marianna LaCan ora, AssistantDeputy Commissioner, O ce o Retirement and Disability Policy, Hearingbe ore Committee on Ways and Means, Subcommittee on Social Security,United States House o Representatives, April 14, 2011, available at:

http://waysandmeans.house.gov/UploadedFiles/SSA_Testimony_-_E-Veri y_-_Final.pd . Westat, Findings, 96.

52 Regulatory Impact Analysis, Employment Eligibility Veri cation, 47-48.According to the SSA website or the San Francisco Region, SSA ClaimsRepresentatives start at either the GS-5 or GS-7 pay range. We have esti-mated daily wages using the more conservative GS-5, and using the 2011base pay or GS-5, step 5 (right in the center o the GS-5 range,) which is$14.90 per hour. Note that base pay is adjusted upwards depending onthe location in the United States, and so these are the most conserva-tive gures available. Federal government salary tables are available at:http://www.opm.gov/oca/11tables/pd /gs_h.pd

53 (Average Hourly Wage or SSA Workers at GS-5 Step 5 * Number o Ameri-cans with a alse TNC) = ($14.90 * 1,234,296) = $18,391,010.40 at a 0.8percent error rate (Westat), or $14.90 * 3,548,601 = $52,874,154.90 at a2.3 percent error rate (LA County).

54 Legal Workforce Act of 2011, H.R. 2164, Section 10, 59.

55 Marielena Hinacpi, Tyler Moran, and Michele Waslin, The SocialSecurity Administration No-Match Program: Ine cient, Ine ective, andCostly,Immigration Policy In Focus , 6 (2)(2008): 5-6. Available at:http://www.immigrationpolicy.org/sites/de ault/ les/docs/InFocusSSANo-Match05-08.pd .

56 Legal Workforce Act of 2011, H.R 2164, Sections 2(3)(C)(ii), 2(3)(B)(i), and 2(3)(B)(ii), respectively.

57 The White House, Building a 21st Century Immigration System , (The WhiteHouse, May 2011), p. 28, available at: http://www.whitehouse.gov/sites/de ault/ les/rss_viewer/immigration_blueprint.pd . On the CBO Score,see tn. 42.
http://www.sba.gov/advocacy/7495/8420http://www.bls.gov/cps/http://www.sba.gov/sites/default/files/sb_econ2010.pdfhttp://www.sba.gov/sites/default/files/sb_econ2010.pdfhttp://www.ice.gov/news/releases/0804/080417dallas.htmhttp://www.ice.gov/news/releases/0804/080417dallas.htmhttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://www.law.virginia.edu/pdf/faculty/garrett/pilgrimspride.pdfhttp://www.law.virginia.edu/pdf/faculty/garrett/pilgrimspride.pdfhttp://www.ice.gov/news/releases/1009/100928detroit.htmhttp://www.whitehouse.gov/the-press-office/2011/01/25/remarks-president-state-union-addresshttp://www.whitehouse.gov/the-press-office/2011/01/25/remarks-president-state-union-addresshttp://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-291012A1.pdfhttp://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-291012A1.pdfhttp://business.hughesnet.com/resources/broadband-in-west-virginiahttp://business.hughesnet.com/resources/broadband-in-west-virginiahttp://connectmi.org/_documents/MI_BizAssessment.pdfhttp://connectmi.org/_documents/MI_BizAssessment.pdfhttp://www.politico.com/static/PPM154_proposal.htmlhttp://www.politico.com/static/PPM154_proposal.htmlhttp://www.cbo.gov/ftpdocs/91xx/doc9100/hr4088ltr.pdfhttp://www.numbersusa.com/content/learn/issues/american-workers/attrition-through-enforcement-true-middl.htmlhttp://www.numbersusa.com/content/learn/issues/american-workers/attrition-through-enforcement-true-middl.htmlhttp://www.immigrationpolicy.org/just-facts/unauthorized-immigrants-pay-taxes-toohttp://www.immigrationpolicy.org/just-facts/unauthorized-immigrants-pay-taxes-toohttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://waysandmeans.house.gov/UploadedFiles/SSA_Testimony_-_E-Verify_-_Final.pdfhttp://waysandmeans.house.gov/UploadedFiles/SSA_Testimony_-_E-Verify_-_Final.pdfhttp://www.opm.gov/oca/11tables/pdf/gs_h.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.whitehouse.gov/sites/default/files/rss_viewer/immigration_blueprint.pdfhttp://www.whitehouse.gov/sites/default/files/rss_viewer/immigration_blueprint.pdfhttp://www.whitehouse.gov/sites/default/files/rss_viewer/immigration_blueprint.pdfhttp://www.whitehouse.gov/sites/default/files/rss_viewer/immigration_blueprint.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.immigrationpolicy.org/sites/default/files/docs/InFocusSSANo-Match05-08.pdfhttp://www.opm.gov/oca/11tables/pdf/gs_h.pdfhttp://waysandmeans.house.gov/UploadedFiles/SSA_Testimony_-_E-Verify_-_Final.pdfhttp://waysandmeans.house.gov/UploadedFiles/SSA_Testimony_-_E-Verify_-_Final.pdfhttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://www.nytimes.com/2008/05/12/opinion/12mon1.html?sq=e-verify&st=nyt&adxnnl=1&scp=1&adxnnlx=1306857930-y2EJraSEuNIAVScy+VobPAhttp://www.immigrationpolicy.org/just-facts/unauthorized-immigrants-pay-taxes-toohttp://www.immigrationpolicy.org/just-facts/unauthorized-immigrants-pay-taxes-toohttp://www.numbersusa.com/content/learn/issues/american-workers/attrition-through-enforcement-true-middl.htmlhttp://www.numbersusa.com/content/learn/issues/american-workers/attrition-through-enforcement-true-middl.htmlhttp://www.cbo.gov/ftpdocs/91xx/doc9100/hr4088ltr.pdfhttp://www.politico.com/static/PPM154_proposal.htmlhttp://www.politico.com/static/PPM154_proposal.htmlhttp://connectmi.org/_documents/MI_BizAssessment.pdfhttp://connectmi.org/_documents/MI_BizAssessment.pdfhttp://business.hughesnet.com/resources/broadband-in-west-virginiahttp://business.hughesnet.com/resources/broadband-in-west-virginiahttp://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-291012A1.pdfhttp://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-291012A1.pdfhttp://www.whitehouse.gov/the-press-office/2011/01/25/remarks-president-state-union-addresshttp://www.whitehouse.gov/the-press-office/2011/01/25/remarks-president-state-union-addresshttp://www.ice.gov/news/releases/1009/100928detroit.htmhttp://www.law.virginia.edu/pdf/faculty/garrett/pilgrimspride.pdfhttp://www.law.virginia.edu/pdf/faculty/garrett/pilgrimspride.pdfhttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://phx.corporate-ir.net/phoenix.zhtml?c=68228&p=irol-mediaNewsArticle&ID=1130817&highlighthttp://www.ice.gov/news/releases/0804/080417dallas.htmhttp://www.ice.gov/news/releases/0804/080417dallas.htmhttp://www.sba.gov/sites/default/files/sb_econ2010.pdfhttp://www.sba.gov/sites/default/files/sb_econ2010.pdfhttp://www.bls.gov/cps/http://www.sba.gov/advocacy/7495/8420

seen and (mostly) unseen

Documents