Speech #1090100406

H.R. 4437 establishes very significant minimum levels for civil penalties. but sets no cap. The new minimums in H.R. 4437 for first-. second-. and thirdtime offenses are $5.000. $10.000. and $25.000. respectively. per alien. This amendment would create what I believe are reasonable caps on these penalty levels. giving employers some level of certainty as to the consequences of hiring an illegal alien while still maintaining a strong deterrent effect through significant penalties. The caps would be $7.500 for a first offenseper alien involved-$1 5.000 for a second offense. and $40.000 for the third and higher offenses. These are certainly penalties that send a necessarily strong message to employers contemplating cutting corners. This amendment also clarifies that an employer who makes a mistake in good faith in complying with the employment eligibility verification system would be spared civil penalties. Finally this amendment provides a sate harbor for contractors whose subcontractors employ illegal aliens. This provision clarifies current law. Under section 274A(a)(4) of the Immigration and Nationality Act. an employer may be held liable for the actions of a subcontractor if the employer knows that the subcontractor is hiring illegal aliens. In other words. employers who have no knowledge as to whether the subcontractors employees are workauthorized cannot be held liable or penalized. This amendment makes that protection clearer. and should help to put employers at ease that they will not be held responsible for the misdeeds of subcontractors.