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by Dawn Lurie and Kevin Lashus
Attorneys from Greenberg
Traurig's Business Immigration & Compliance practice group have written a
piece on what the costs are of using E-Verify to check whether employees are
permitted to work in this country. This piece can help attorneys advise clients
on an important decision, because an increasing number of local, state, and
federal officials are expanding the need to at least consider using E-Verify.
According to Bloomberg's
estimates, assuming E-Verify costs remained constant during the time frame (and
usage of the system was adjusted for growth), employers spent an estimated $95
million in fiscal 2010 to participate "for free" in E-Verify.
Businesses with fewer than 500 workers bear the greatest cost burden because
the fixed costs are spread over fewer hires. The Bloomberg report concluded
that E-Verify cost small businesses in 2008 an average of $127 to run each new
hire query [and to respond in a timely manner to a TNC/final non-confirmation
(FNC) situation], compared with $63 for all firms. Projected outward, Bloomberg
calculated that those figures would be $147 and $73, respectively.
In summary: "Businesses with fewer than 500 workers bear the greatest
burden (of such a proposal), according to the data, spending about $2.6 billion
a year to use the government's web-based verification system, E-Verify,
compared with less than $100 million for those that used it in 2010."
That is "billion" with a B. In a recent survey commissioned by the
government, Westat reported that employers spent about $43 million in the
fiscal year ending September 30, 2008, to interact with the employment
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This GT Alert was
written by Dawn M. Lurie and Kevin Lashus. Questions about this
information can be directed to: Dawn M. Lurie - 703.903.7527 /
202.331.3185 | firstname.lastname@example.org
· Kevin Lashus - 512.320.7219 | email@example.com.
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