Committee advances bill to register labor brokers and require E-Verify for certain labor-placement arrangements

A Senate committee voted to advance a House bill that would create a state registration and verification requirement for entities that bring workers into Alabama for employment placements and would ban certain fees and kickbacks tied to those placements.

Representative Robbins, the bill sponsor, told the committee the measure would define “labor broker” to mean an individual or entity that transports or places individuals into the state for work purposes and that, under the bill, such brokers would have to register with the state and use E‑Verify for workers they place. Robbins said the change would close an “end run” around current E‑Verify rules by intermediaries that are not the direct employer but handle placement, payroll or workers’ compensation arrangements.

The bill also would ban payments from workers to brokers for placement services, a practice Robbins described as exploitative, and would authorize the state workforce agency to charge a fee to cover administrative costs tied to operating a “foreign worker resource fund.”

Why it matters: If enacted, the bill would expand verification requirements to certain intermediaries in the labor market and establish penalties for payment or kickbacks that sponsors described as labor trafficking risks. Supporters said the measure protects workers from exploitative placement fees; opponents warned it could create unintended consequences for employers and community organizations and said outreach and education were needed.

Committee action and votes

- An amendment to the bill was offered and the committee approved the amendment by roll call. The amendment passed with the recorded ayes and noes listed on the committee roll (several senators recorded as voting “aye”; the transcript records that a member requested to change a vote to “no” during final tallying). Following the amendment, the bill as amended received a first and second and was advanced by previous-roll vote.

Debate and testimony

Robbins said the bill would “protect legal immigrants that are already in this state,” ensure correct tax collection, and prevent firms or individuals from charging placement fees to workers. He described the bill as building on existing employer E‑Verify requirements by adding registration and verification duties for intermediaries that place six or more workers.

Committee members asked for clarification on implementation details including how the workforce agency would set the fee to support the foreign worker resource fund. Robbins said the fee would be set by the workforce agency to cover administrative expenses related to maintaining databases and records.

One senator said she expected the committee’s likely action but asked for a roll call vote; the committee complied and recorded votes on the amendment and the bill.

What the bill does not do (as stated in committee)

- The bill does not remove E‑Verify obligations from direct employers; it adds verification and registration obligations for specified intermediaries. - The bill sets a placement threshold (six or more workers) for when the intermediary must E‑Verify.

Ending: Sponsors signaled the measure would likely see continued debate on implementation details on the floor; the committee approved the amendment and advanced the bill for further consideration.