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House approves employer verification bill to strengthen enforcement against illegal labor practices
Summary
House Bill 226, the "Legal Employment and Government Accountability (Legal) Act," passed a second‑reading recommendation 89‑11. The measure authorizes the Department of Labor and Industry to check I‑9 or E‑Verify records during inspections and establishes graduated penalties and a special revenue account for fines.
Representative Springer introduced House Bill 226, which he described as a tool to protect law‑abiding Montana businesses from unfair competition from employers who use undocumented or illegally employed labor.
Springer told members the bill authorizes the Department of Labor and Industry to verify employer I‑9 or E‑Verify records as part of existing inspections, create an enforcement process with graduated fines, and deposit penalties into a state special revenue account to offset inspection costs.
During questioning Representative Nickel asked whether the bill allows I‑9 documents or E‑Verify as proof. Springer responded that the bill allows either an I‑9 or E‑Verify and that including the I‑9 option is important for small employers that may not have E‑Verify software or training costs.
The committee recommended the bill do pass on second reading by a vote of 89 ayes to 11 noes.
Why it matters: the bill expands state enforcement authority to assess employer documentation of legal work authorization during inspections and creates penalties intended to deter illegal employment practices that undercut compliant businesses.
