HB 905 — An Act prohibiting the employment of unauthorized employees; requiring hotel and lodging industry employers to verify the Social Security numbers of employees; imposing duties on the Department of Labor and Industry; and imposing penalties.

PRINTER'S NO.   946

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 905
                                               Session of
                                                 2025

     INTRODUCED BY M. MACKENZIE, BERNSTINE AND ZIMMERMAN,
        MARCH 13, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 13, 2025


                                    AN ACT
 1   Prohibiting the employment of unauthorized employees; requiring
 2      hotel and lodging industry employers to verify the Social
 3      Security numbers of employees; imposing duties on the
 4      Department of Labor and Industry; and imposing penalties.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7   Section 1.   Short title.
 8      This act shall be known and may be cited as the Hotel and
 9   Lodging Industry Employee Verification Act.
10   Section 2.   Definitions.
11      The following words and phrases when used in this act shall
12   have the meanings given to them in this section unless the
13   context clearly indicates otherwise:
14      "Agency."    An agency, department, board or commission of the
15   Commonwealth or of a municipality that issues a license for
16   purposes of operating a business in this Commonwealth.
17      "Department."    The Department of Labor and Industry of the
18   Commonwealth.
19      "Employ."    To enter into an employer-employee relationship
 1   with an individual or to use a contract, subcontract or exchange
 2   with an individual to obtain labor.
 3      "Employee."        An individual who enters into an employer-
 4   employee relationship with an employer or into a contract,
 5   subcontract or exchange with an employer to provide labor.
 6      "Employer."        Any of the following with at least 150 guest
 7   rooms:
 8            (1)   A hotel, motel, inn, guesthouse or other building
 9      that holds itself out by any means, including advertising,
10      license, registration with any innkeeper's group, convention
11      listing association, travel publication or similar
12      association or with a government agency, as being available
13      to provide overnight lodging or use of facility space for
14      consideration to individuals seeking temporary accommodation.
15            (2)   A place that advertises to the public at large or
16      any segment of the public that it will provide beds, sanitary
17      facilities or other space for a temporary period to members
18      of the public at large.
19            (3)   A place recognized as a hostelry.
20      "E-Verify program."       The Internet-based program administered
21   by the United States Department of Homeland Security and the
22   United States Social Security Administration that allows
23   employers to verify an employee's work-authorization status. The
24   term includes any successor program.
25      "License."        As follows:
26            (1)   A permit, certificate, approval, registration,
27      charter or similar form of authorization that is required by
28      law and issued by an agency for the purposes of:
29                  (i)    operating a business in this Commonwealth; or
30                  (ii)    conducting operations in the hotel and lodging

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 1            industry.
 2            (2)   The term includes articles of incorporation and
 3      domestic or foreign entity registrations under 15 Pa.C.S.
 4      (relating to corporations and unincorporated associations).
 5            (3)   The term does not include a professional or
 6      occupational license or certificate granted to an individual
 7      to engage in a profession or trade.
 8      "Subcontractor."     A person regardless of tier, including a
 9   staffing agency, that supplies workers to an employer under a
10   contract.
11      "Unauthorized employee."     An employee who does not have the
12   legal right or authorization under Federal law to work in the
13   United States.
14   Section 3.     Prohibited employment.
15      (a)   Prohibition.--An employer may not knowingly employ an
16   unauthorized employee.
17      (b)   Verification.--On and after the effective date of this
18   subsection, an employer that hires an employee shall verify the
19   employment eligibility of the employee through the E-Verify
20   program and shall keep a record of the verification for the
21   duration of the employee's employment or three years, whichever
22   is longer.
23      (c)   Staffing agencies.--If a staffing agency supplies
24   workers to multiple industries, subsections (a) and (b) shall
25   only apply to workers supplied for the hotel and lodging
26   industry.
27   Section 4.     Procedures, presumptions and defenses.
28      (a)   Complaint form.--The department shall develop and make
29   available a complaint form for an individual to allege a
30   violation of section 3(a).

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 1      (b)    Complaint process.--
 2             (1)    An individual may submit to the department a
 3      complaint about a violation of section 3(a) on the prescribed
 4      complaint form.
 5             (2)    An individual who knowingly provides materially
 6      false information on the prescribed complaint form shall be
 7      subject to punishment under 18 Pa.C.S. § 4904 (relating to
 8      unsworn falsification to authorities).
 9             (3)    The department may investigate complaints under this
10      act.
11             (4)    Pursuant to an investigation of a complaint under
12      this act, the department may:
13                    (i)    Enter and inspect the place of business or place
14             of employment of an employer in this Commonwealth at any
15             reasonable time for the purpose of examining and
16             inspecting records of the employer that in any way relate
17             to compliance with this act.
18                    (ii)    Copy any or all records as the department may
19             deem necessary or appropriate.
20                    (iii)    Require from an employer full and accurate
21             statements in writing, at times that the department deems
22             necessary, of the work authorization verification process
23             for all employees in the employer's employment.
24                    (iv)    Interrogate persons for the purpose of
25             ascertaining whether an employer has complied with this
26             act.
27      (c)    Duty to investigate.--Upon receipt of a complaint on the
28   prescribed complaint form alleging that an employer knowingly
29   employs an unauthorized employee, the department shall
30   investigate whether the employer has violated section 3(a) if

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 1   all the information required to complete the form has been
 2   provided, including the name of the individual filing the
 3   complaint.
 4      (d)    Authority to investigate.--The department may
 5   investigate a complaint that is not submitted on the prescribed
 6   complaint form, including an anonymous complaint.
 7      (e)    Prohibition.--The department may not investigate a
 8   complaint that is based solely on race, color or national
 9   origin.
10      (f)    Verification.--If the department investigates a
11   complaint, the department shall verify the work authorization of
12   the alleged unauthorized employee with the Federal Government
13   under 8 U.S.C. § 1373(c) (relating to communication between
14   government agencies and the Immigration and Naturalization
15   Service). A Commonwealth or local official may not attempt to
16   independently make a final determination on whether an
17   unauthorized employee is authorized to work in the United
18   States.
19      (g)    Notification and action.--If, after an investigation,
20   the department determines that the alleged employee is an
21   unauthorized employee, the department shall do all of the
22   following:
23             (1)   For a first violation, the department shall issue a
24      warning letter detailing the violation and informing the
25      employer of the provisions of this act. The following apply:
26                   (i)    Notwithstanding paragraph (2), a violation by an
27             employer that occurs 10 years or more after a prior
28             violation shall be deemed a first violation.
29                   (ii)    The department may not issue a warning letter
30             if the employer demonstrates that the employment

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 1            eligibility of the unauthorized employee was verified in
 2            good faith through the E-Verify program in accordance
 3            with section 3(b).
 4                  (iii)    After the issuance of a warning letter, the
 5            employer shall verify in writing to the department within
 6            10 business days that the employer has terminated the
 7            employment of each unauthorized employee in this
 8            Commonwealth. If the employer fails to provide the
 9            verification, the violation shall constitute a second
10            violation, and the department shall make a referral to
11            the Attorney General in accordance with paragraph (2).
12                  (iv)    The employer may appeal the issuance of the
13            warning letter under the provisions of 2 Pa.C.S.
14            (relating to administrative law and procedure).
15            (2)   For a second or subsequent violation, the department
16      shall refer the case to the Attorney General for enforcement.
17      The Attorney General shall bring an action against the
18      employer in the county where the unauthorized employee is or
19      was employed by the employer. The Attorney General may not
20      bring an action against an employer for a violation that
21      occurred before the effective date of this paragraph.
22      (h)   Expedited action.--Upon docketing an action under this
23   section, a court shall expedite the action, including assigning
24   the hearing at the earliest practicable date.
25      (i)   Determination.--In determining whether an employee is an
26   unauthorized employee, a court shall consider only the Federal
27   Government's determination under 8 U.S.C. § 1373(c). The
28   following apply:
29            (1)   The Federal Government's determination shall create
30      a rebuttable presumption of the employee's status.

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 1            (2)   The court may take judicial notice of the Federal
 2      Government's determination and may request the Federal
 3      Government to provide automated or testimonial verification
 4      under 8 U.S.C. § 1373(c).
 5      (j)   Rebuttable presumption.--Proof that the employer
 6   verified the employment authorization of an employee through the
 7   E-Verify program shall create a rebuttable presumption that an
 8   employer did not knowingly employ an unauthorized employee.
 9      (k)   Affirmative defenses.--
10            (1)   For the purposes of this section, it shall be an
11      affirmative defense if an employer demonstrates that the
12      employer has complied in good faith with 8 U.S.C. § 1324a(b)
13      (relating to unlawful employment of aliens). An employer
14      shall be considered to have complied with 8 U.S.C. §
15      1324a(b), notwithstanding an isolated, sporadic or accidental
16      technical or procedural failure to meet the requirements, if
17      the employer establishes a good faith attempt to comply with
18      8 U.S.C. § 1324a(b).
19            (2)   An employer shall have an affirmative defense to a
20      violation under section 3(a) if a subcontractor or a
21      subcontractor responsible for a violation by another
22      subcontractor has knowingly employed an unauthorized
23      employee, provided that the contractor has done the
24      following:
25                  (i)    Required compliance with this act in the
26            contract with the subcontractor, including providing for
27            the termination of the contract upon court-ordered
28            sanctions for a violation of this act by the
29            subcontractor.
30                  (ii)    Obtained written verification from the

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 1            subcontractor that the subcontractor is aware of the
 2            provisions of this act and is responsible for compliance.
 3   Section 5.     Penalties and remedial orders.
 4      (a)   Order.--Upon a finding of a violation under section 3(a)
 5   pursuant to an action brought by the Attorney General under this
 6   act, a court shall order all of the following:
 7            (1)   The employer to terminate the employment of each
 8      unauthorized employee.
 9            (2)   The employer to a three-year probationary period for
10      each business location where an unauthorized employee
11      performed work. During the probationary period, the employer:
12                  (i)    shall file quarterly reports with the department
13            of each new employee who is hired by the employer at the
14            business location where an unauthorized employee
15            performed work; and
16                  (ii)    may not knowingly employ an unauthorized
17            employee.
18            (3)   The employer, within five business days, to verify
19      in writing to the department that the employer has terminated
20      the employment of each unauthorized employee in this
21      Commonwealth.
22            (4)   Agencies to suspend each license that is held by the
23      employer if the employer fails to timely submit the
24      verification. The following apply:
25                  (i)    Each license that is suspended under this
26            paragraph shall remain suspended until the employer
27            complies.
28                  (ii)    Each license shall be reinstated immediately by
29            the appropriate agency upon filing the verification under
30            paragraph (3).

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 1                  (iii)   A license that is subject to suspension under
 2            this paragraph shall include each license that is held by
 3            the employer specific to the business location where an
 4            unauthorized employee performed work. If the employer
 5            does not hold a license specific to the business location
 6            where an unauthorized employee performed work, the court
 7            shall order suspension of each license that is held by
 8            the employer pertaining to operations anywhere within
 9            this Commonwealth.
10      (b)   Duration.--
11            (1)   For a second violation of section 3(a), the court
12      may order the agency to suspend each license described under
13      subsection (a)(4) that is held by the employer for a period
14      not to exceed 30 business days.
15            (2)   For a subsequent violation of section 3(a) or a
16      violation occurring during a three-year probationary period
17      under subsection (a)(2), the court shall order suspension for
18      a term not less than one year up to the permanent revocation
19      of each license.
20      (c)   Factors.--In determining whether to order suspension or
21   the duration of a suspension, the court shall consider the
22   following factors:
23            (1)   The number of unauthorized employees employed by the
24      employer.
25            (2)   Any prior misconduct by the employer.
26            (3)   The degree of harm resulting from the violation.
27            (4)   Whether the employer made good faith efforts to
28      comply with any applicable requirements.
29            (5)   The duration of the violation.
30            (6)   The role of the directors, officers or principals of

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 1      the employer in the violation.
 2            (7)   Any other factor that the court deems appropriate.
 3      (d)   Suspension and reinstatement fees.--Nothing in this act
 4   shall prohibit an agency from charging an applicable fee for the
 5   suspension or reinstatement of a license.
 6   Section 6.     Protection from retaliation.
 7      (a)   Prohibited conduct.--It shall be unlawful for an
 8   employer to discharge, threaten or otherwise retaliate or
 9   discriminate against an employee regarding compensation or other
10   terms or conditions of employment because the employee:
11            (1)   participates in an investigation, hearing or inquiry
12      held by the Secretary of Labor and Industry or any other
13      governmental authority under this act; or
14            (2)   reports or makes a complaint regarding the violation
15      of this act to an employer or governmental authority.
16      (b)   Actions.--
17            (1)   An employee who suffers retaliation or
18      discrimination in violation of this section may bring an
19      action in a court of common pleas in accordance with
20      established civil procedures of this Commonwealth.
21            (2)   The action under paragraph (1) must be brought
22      within three years from the date the employee knew of the
23      retaliation or discrimination.
24      (c)   Relief.--If an employee prevails in an action commenced
25   under this section, the employee shall be entitled to the
26   following relief:
27            (1)   Reinstatement of the employee, if applicable.
28            (2)   Restitution equal to three times the amount of the
29      employee's wages and fringe benefits calculated from the date
30      of the retaliation or discrimination.

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 1            (3)   Reasonable attorney fees and costs of the action.
 2            (4)   Any other legal and equitable relief as the court
 3      deems appropriate.
 4   Section 7.     Immunity.
 5      An employer that relies in good faith on the E-Verify program
 6   to verify employment eligibility of new employees under this act
 7   shall have no liability to an individual who is not hired or who
 8   is discharged from employment if incorrect information has been
 9   provided to the employer.
10   Section 8.     Required information.
11      (a)   Duty of employer.--Upon hiring an employee, an employer
12   shall provide to the employee information on the following:
13            (1)   The limitations on employment of minors under the
14      act of October 24, 2012 (P.L.1209, No.151), known as the
15      Child Labor Act, including the occupational restrictions for
16      minors.
17            (2)   The prohibitions on hiring an individual who does
18      not have the legal right or authorization under Federal law
19      to work in the United States, in accordance with 8 U.S.C. §
20      1324a (relating to unlawful employment of aliens).
21      (b)   Duty of department.--The department may enforce the
22   provisions of subsection (a).
23      (c)   Penalties.--
24            (1)   If the department determines that an employer has
25      violated the requirements of subsection (a), the department
26      shall issue a written warning to the employer.
27            (2)   If an employer fails to comply with the requirements
28      of subsection (a) within 90 days of receiving the warning
29      under paragraph (1), the employer commits a second violation
30      and may be subject to a penalty of not more than $250.

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1   Section 9.   Effective date.
2      This act shall take effect in one year.




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