Adds to existing law to establish certain requirements for employers to verify the lawful status of workers.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 584 BY BUSINESS COMMITTEE AN ACT1 RELATING TO UNAUTHORIZED WORKERS; AMENDING TITLE 44, IDAHO CODE, BY THE AD-2 DITION OF A NEW CHAPTER 3, TITLE 44, IDAHO CODE, TO DEFINE TERMS, TO PRO-3 HIBIT THE EMPLOYMENT OF CERTAIN PERSONS AND TO REQUIRE THE VERIFICATION4 OF LEGAL EMPLOYMENT STATUS OF WORKERS, TO PROVIDE FOR ACTIONS BY THE AT-5 TORNEY GENERAL, TO PROVIDE FOR VIOLATIONS, TO PROVIDE FOR DEFENSES, TO6 PROVIDE FOR EXCLUSIONS FROM LIABILITY, TO PROVIDE FOR INTERPRETATION,7 AND TO PROVIDE FOR EXCLUSIONS; AND DECLARING AN EMERGENCY AND PROVIDING8 AN EFFECTIVE DATE.9

Be It Enacted by the Legislature of the State of Idaho:10

SECTION 1. That Title 44, Idaho Code, be, and the same is hereby amended11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-12 ter 3, Title 44, Idaho Code, and to read as follows:13 CHAPTER 314 VERIFYING LEGAL EMPLOYMENT STATUS OF WORKERS15 44-301. DEFINITIONS. As used in this chapter:16 (1) "Alien" means any person who is not a citizen or national of the17 United States as described in 8 U.S.C. 1101 et seq.18 (2) "Director" means the director of the Idaho department of labor or19 the director's designated agent.20 (3) "E-verify" or "e-verify program" means the electronic verifica-21 tion of federal employment authorization program of the illegal immigration22 reform and immigrant responsibility act, 8 U.S.C. 1324a, operated by the23 United States department of homeland security.24 (4) "Employee" means any person directed, allowed, or permitted to per-25 form labor or service of any kind by an employer. For the purposes of this26 chapter, the employees of an independent contractor working for a business27 entity shall not be regarded as the employees of the business entity.28 (5) "Employer" means any individual, person, corporation, depart-29 ment, board, bureau, agency, commission, division, office, company, firm,30 partnership, council, or committee of the state government, public benefit31 corporation, public authority, political subdivision of the state, or other32 business entity that employs or seeks to employ an individual or individuals33 and that registers with the secretary of state.34 (6) "Federal work authorization program" means any of the electronic35 verification of work authorization programs operated by the United States36 department of homeland security or an equivalent federal work authorization37 program operated by the United States department of homeland security to38 verify information of newly hired employees under 8 U.S.C. 1324a.39 (7) "Knowingly" means, with respect to conduct or to a circumstance de-40 scribed by a statute defining an offense, that a person is aware by docu-41

2 mentation or action that the person's conduct is of that nature or that the1 circumstance exists. "Knowingly" includes the failure to request or review2 documentation of an employee's legal status or authorization to work.3 (8) "Lawful presence" or "lawfully present" means a person shall be re-4 garded as an alien unlawfully present in the United States only if the per-5 son's unlawful immigration status has been verified by the federal govern-6 ment pursuant to 8 U.S.C. 1373(c). No officer of this state or any political7 subdivision of this state shall attempt to independently make a final deter-8 mination of an alien's immigration status. An alien possessing self-identi-9 fication in any of the following forms is entitled to the presumption that he10 is an alien lawfully present in the United States:11 (a) A valid, unexpired Idaho driver's license;12 (b) A valid, unexpired Idaho identification card issued pursuant to the13 provisions of section 49-2442, Idaho Code;14 (c) A valid tribal enrollment card or other form of tribal identifica-15 tion bearing a photograph or other biometric identifier;16 (d) Any valid United States federal or state government-issued identi-17 fication document bearing a photograph or other biometric identifier,18 if issued by an entity that requires proof of lawful presence in the19 United States before issuance;20 (e) A foreign passport with an unexpired United States visa and a corre-21 sponding stamp or notation by the United States department of homeland22 security indicating the bearer's admission to the United States; or23 (f) A foreign passport issued by a visa waiver program designated coun-24 try with the corresponding entry stamp and unexpired duration of stay25 annotation or an I-94W form by the United States department of homeland26 security indicating the bearer's admission to the United States.27 (9) "License" means any permit, certificate, approval, registration,28 charter, or similar form of authorization that is required by law and that is29 issued for the purpose of operating a business in this state.30 (10) "Unauthorized worker" means a person who does not have the legal31 right to be employed or is employed in violation of law or an alien who is not32 authorized to work in the United States as defined in 8 U.S.C. 1324a(h)(3).33 44-302. UNAUTHORIZED WORKERS OR ALIENS -- EMPLOYMENT PROHIBITED. (1)34 It is unlawful for any employer to knowingly employ, hire, recruit, or re-35 fer, either for the employer itself or on behalf of another, for private or36 public employment within the state an unauthorized worker who is not duly au-37 thorized to be employed by law. No business entity, employer, or public em-38 ployer may knowingly employ, hire for employment, or continue to employ an39 unauthorized alien to perform work within the state of Idaho. "Knowingly40 employ, hire for employment, or continue to employ an unauthorized alien"41 means the actions described in 8 U.S.C. 1324a.42 (2) Employers are required to verify an employee's legal status or au-43 thorization to work after employing the individual within the first three44 (3) days after the employee's first day of work for pay has elapsed or by no45 later than the first day of work for pay if the employee will work for fewer46 than three (3) days.47 (3) For the purpose of this chapter, proof of legal status or authoriza-48 tion to work includes but is not limited to a valid social security card, a49

3 valid immigration or nonimmigration visa with photo identification, a valid1 birth certificate, a valid passport, a valid photo identification card is-2 sued by a government agency, a valid work permit or supervision permit autho-3 rized by the Idaho department of labor, a valid permit issued by the United4 States department of justice, or another valid document providing evidence5 of legal residence or authorization to work in the United States.6 (4) For the purpose of enforcing the provisions of this chapter and7 notwithstanding any other provision of law to the contrary, the director may8 access information maintained by any state agency, including but not limited9 to the Idaho department of labor and the Idaho state department of trans-10 portation, for the limited purpose of confirming the validity of a worker's11 legal status or authorization to work. The director shall promulgate rules,12 subject to legislative approval, in accordance with chapter 52, title 67,13 Idaho Code, to safeguard against the release of any confidential or identi-14 fying information that is not necessary for the limited purpose of enforcing15 the provisions of this chapter.16 (5) On and after July 1, 2026, every business entity and employer in17 this state shall enroll in the e-verify program and shall thereafter, ac-18 cording to the federal statutes and regulations governing e-verify, verify19 the employment eligibility of new hires through e-verify. A business en-20 tity or employer that uses e-verify to verify the work authorization of an21 employee shall not be considered to have violated this section with respect22 to the employment of that employee.23 (6) As a condition for the award of any contract, grant, or incentive24 by this state, any political subdivision of the state, or any state-funded25 entity to a business entity or employer that employs one (1) or more employ-26 ees, the business entity or employer shall provide documentation establish-27 ing that the business entity or employer is enrolled in the e-verify pro-28 gram. During the performance of the contract, the business entity or em-29 ployer shall participate in the e-verify program and shall verify every em-30 ployee that is required to be verified according to the applicable federal31 rules and regulations.32 (7) No subcontractor on a project paid for by contract, grant, or in-33 centive by this state, any political subdivision of the state, or any state-34 funded entity may knowingly employ, hire for employment, or continue to em-35 ploy an unauthorized alien. Such a subcontractor shall enroll in the e-ver-36 ify program prior to performing any work on the project and shall verify ev-37 ery employee that is required to be verified according to the applicable fed-38 eral rules and regulations.39 (8) Compliance with this section may be verified by state authorities40 or law enforcement at any time to ensure a contractual agreement as provided41 for in this section is being met.42 44-303. ACTIONS BY ATTORNEY GENERAL. (1) The attorney general may43 bring a civil complaint in any court of competent jurisdiction to enforce the44 requirements of this chapter.45 (2) Any resident of this state may petition the attorney general to46 bring an enforcement action against a specific business entity or employer47 by means of a written, signed petition. A valid petition shall include an48 allegation that describes the alleged violator or violators, as well as49

4 the action constituting the violation, and the date and location where the1 violation occurred. A petition that alleges a violation on the basis of2 national origin, ethnicity, or race shall be considered invalid and may not3 be acted upon. The attorney general shall respond to any petition under4 this subsection within sixty (60) days of receiving the petition, either by5 filing a civil complaint in a court of competent jurisdiction or by inform-6 ing the petitioner in writing that the attorney general has determined that7 filing a civil complaint is not warranted.8 44-304. VIOLATIONS. (1) In any court proceedings, the determination9 of whether an employee is an unauthorized alien shall be made by the fed-10 eral government, pursuant to 8 U.S.C. 1373(c). The court shall consider only11 the federal government's determination when deciding whether an employee is12 an unauthorized alien. The court may take judicial notice of any verifica-13 tion of an individual's immigration status previously provided by the fed-14 eral government and may request the federal government to provide further15 automated or testimonial verification.16 (2)(a) Upon the first violation of section 44-302(6), Idaho Code, by17 any business entity or employer awarded a contract by the state, any18 political subdivision of the state, or any state-funded entity, the19 business entity or employer shall be considered in breach of contract20 and the state, political subdivision, or state-funded entity may ter-21 minate the contract after providing notice and an opportunity to be22 heard. Upon application by the state entity, political subdivision,23 or state-funded entity, the attorney general may bring an action to24 suspend the business licenses and permits of the business entity or25 employer for a period not to exceed sixty (60) days, according to the26 procedures described in this section. The court shall order the busi-27 ness entity or employer to file a signed, sworn affidavit with the28 attorney general within three (3) days after the order is issued by the29 court stating that the business entity or employer has terminated the30 employment of every unauthorized alien and that the business entity or31 employer will not knowingly or intentionally employ an unauthorized32 alien in this state.33 (b) Upon a second or subsequent violation of section 44-302(6), Idaho34 Code, by any business entity or employer awarded a contract by the35 state, any political subdivision, or any state-funded entity, the busi-36 ness entity or employer shall be considered in breach of contract and37 the state, political subdivision, or state-funded entity shall ter-38 minate the contract after providing notice and an opportunity to be39 heard. Upon application by the state entity, political subdivision, or40 state-funded entity, the attorney general may bring an action to perma-41 nently revoke the business licenses and permits of the business entity42 or employer.43 (3)(a) Upon the first violation of section 44-302(7), Idaho Code, by44 a subcontractor, the state or political subdivision of the state may45 bar the subcontractor from doing business with the state, any politi-46 cal subdivision of the state, or any state-funded entity, or with any47 contractor who contracts with the state, any political subdivision of48 the state, or any state-funded entity, after providing notice and an op-49

5 portunity to be heard. Upon application by the state entity, political1 subdivision, or state-funded entity, the attorney general may bring an2 action to suspend the business licenses and permits of the subcontrac-3 tor for a period not to exceed sixty (60) days. The court shall order4 the subcontractor to file a signed, sworn affidavit with the attorney5 general within three (3) days after the order is issued by the court6 stating that the subcontractor has terminated the employment of every7 unauthorized alien and that the subcontractor will not knowingly or8 intentionally employ an unauthorized alien in this state.9 (b) Upon a second or subsequent violation of section 44-302(7), Idaho10 Code, by a subcontractor and upon application by the state entity, po-11 litical subdivision, or state-funded entity, the attorney general may12 bring an action to permanently suspend the business licenses of the13 business entity or employer.14 (4) Upon a finding by a court of competent jurisdiction that a business15 entity or employer knowingly violated the provisions of section 44-302(5),16 Idaho Code, for the first time, the court shall:17 (a) Order the business entity or employer to terminate the employment18 of every unauthorized alien;19 (b) Subject the business entity or employer to a three (3) year proba-20 tionary period throughout the state. During the probationary period,21 the business entity or employer shall file quarterly reports with the22 attorney general of each new employee who is hired by the business en-23 tity or employer in the state;24 (c) Order the business entity or employer to file a signed, sworn af-25 fidavit with the attorney general within three (3) days after the or-26 der is issued by the court stating that the business entity or employer27 has terminated the employment of every unauthorized alien and that the28 business entity or employer will not knowingly or intentionally employ29 an unauthorized alien in this state; and30 (d) Direct the applicable state, county, or municipal governing bodies31 to suspend any business licenses and permits of the business entity or32 employer for a period not to exceed ten (10) business days specific to33 the business location where the unauthorized alien performed work.34 (5) For a second violation of section 44-302(5), Idaho Code, by a35 business entity or employer, the court shall direct the applicable state,36 county, or municipal governing body to permanently revoke any business li-37 censes and permits held by the business entity or employer specific to the38 business location where the unauthorized alien performed work. Upon receipt39 of the order and notwithstanding any other law, the appropriate agencies40 shall immediately revoke the licenses and permits held by the business en-41 tity or employer.42 (6) For a third or subsequent violation of section 44-302(5), Idaho43 Code, the court shall direct the applicable governing bodies to permanently44 suspend any business licenses and permits of the business entity or employer45 throughout the state.46 (7) The suspension of a business license or permit pursuant to subsec-47 tion (2)(a), (3)(a), or (4)(d) of this section shall terminate one (1) busi-48 ness day after a legal representative of the business entity, employer, or49 subcontractor submits to the court a signed, sworn affidavit stating that50

6 the business entity, employer, or subcontractor is in compliance with the1 provisions of this chapter, along with a copy of the memorandum of under-2 standing issued at the time of enrollment in the e-verify program.3 (8) If an employee of any agency of the state or any political subdi-4 vision of the state fails to suspend the business licenses or permits of any5 business entity or employer as a result of a violation of this chapter, the6 agency shall be deemed to have violated section 44-302(1), Idaho Code, and7 may be compelled to enforce this chapter by a writ of mandamus brought by the8 attorney general in any court of competent jurisdiction.9 (9) The secretary of state shall promulgate rules, subject to legisla-10 tive approval, in accordance with chapter 52, title 67, Idaho Code, as neces-11 sary to provide for the suspension, reinstatement, and cancellation of busi-12 ness licenses required under this chapter.13 44-305. DEFENSES. (1) This chapter may not be construed to deny any14 procedural mechanisms or legal defenses included in the e-verify program or15 any other federal work authorization program. A business entity, employer,16 subcontractor, or other person that establishes that it has complied in good17 faith with section 44-302(5), Idaho Code, establishes an affirmative de-18 fense that the business entity, employer, or subcontractor did not knowingly19 hire or employ an unauthorized alien.20 (2) It is an affirmative defense to a violation of section 44-302(1),21 Idaho Code, that a business entity or employer was entrapped. To claim en-22 trapment, the business entity or employer must admit by testimony or other23 evidence the substantial elements of the violation. A business entity or em-24 ployer who asserts an entrapment defense has the burden of proving by clear25 and convincing evidence the following:26 (a) The idea of committing the violation started with law enforcement27 officers or their agents rather than with the business entity or em-28 ployer;29 (b) The law enforcement officers or their agents urged and induced the30 business entity or employer to commit the violation; and31 (c) The business entity or employer was not already predisposed to com-32 mit the violation before the law enforcement officers or their agents33 urged and induced the employer to commit the violation.34 44-306. EXCLUSIONS FROM LIABILITY. (1) A contractor of any tier shall35 not be liable under this chapter when its direct subcontractor violates sec-36 tion 44-302, Idaho Code, if the contractor receives a sworn affidavit from37 the subcontractor signed before a notary that the direct subcontractor, in38 good faith, has complied with respect to verifying each employee's eligibil-39 ity for employment, unless the contractor knows the direct subcontractor is40 violating this section.41 (2) Any business entity or employer that terminates the employment of42 an employee to comply with this chapter shall not be liable for any claims43 made against the business entity or employer by the terminated employee if44 such termination is made without regard to the race, ethnicity, or national45 origin of the employee.46

7 44-307. INTERPRETATION. The provisions of this chapter shall be in-1 terpreted consistently with 8 U.S.C. 1324a and any applicable federal rules2 and regulations.3 44-308. EXCLUSIONS. This chapter does not apply to the relationship4 between a party and the employees of an independent contractor performing5 work for the party and does not apply to casual domestic labor performed6 within a household.7

SECTION 2. An emergency existing therefor, which emergency is hereby8 declared to exist, this act shall be in full force and effect on and after9 July 1, 2026.10