S2785-118

Introduced

To gradually raise the Federal minimum wage, to permanently establish the E-Verify employment eligibility verification system, to mandate the use of E-Verify by all employers, and for other purposes.

118th Congress Introduced Sep 13, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill combines two major policy changes: it gradually raises the federal minimum wage from $7.25 to $11.00 per hour over five years (with lower rates for small businesses and youth workers), and it makes the E-Verify employment eligibility verification system permanent and mandatory for all employers. The bill aims to increase wages for low-income workers while reducing unauthorized employment in the United States.

Who Benefits and How

Low-wage workers benefit from higher minimum wages that rise to $11/hour over five years. Authorized workers may face less competition from unauthorized workers as E-Verify becomes mandatory. Large employers already using E-Verify benefit from a level playing field as competitors must now also verify workers. Federal government agencies receive $100 million annually to operate E-Verify.

Who Bears the Burden and How

All employers face new compliance requirements to use E-Verify when hiring, with staggered deadlines based on company size (6-18 months). Small businesses must pay higher minimum wages and implement E-Verify systems. Employers face dramatically increased penalties for hiring violations (up to $25,000 per unauthorized worker vs. current $10,000 maximum). States that refuse to share DMV data lose federal economic development and housing grants. Unauthorized workers face greater barriers to employment.

Key Provisions

  • Raises minimum wage gradually from $7.25 to $11.00/hour over 5 years, indexed to inflation thereafter
  • Makes E-Verify permanent and mandatory for all employers on phased timeline (6-18 months based on size)
  • Increases civil penalties for hiring violations 2.5x-5x (up to $25,000 per violation)
  • Conditions federal grants on states sharing DMV photo data with DHS for identity verification

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Gradually increases the federal minimum wage while mandating E-Verify for all employers to prevent unauthorized employment

Key Policy Areas

Labor, Immigration, Employment Verification, Wages

Primary Purpose

Gradually increases the federal minimum wage while mandating E-Verify for all employers to prevent unauthorized employment

Policy Domains

Labor Immigration Employment Verification Wages

Section 4 - Minimum Wage Increases

Identified Gains
Contextual inference, no direct clause citation
  • Low-wage workers
  • Minimum wage earners
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Small businesses
  • Retail and food service employers
  • Employers using minimum wage labor
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Section 6-12 - Mandatory E-Verify and Penalties

Identified Gains
Contextual inference, no direct clause citation
  • Authorized workers
  • Large employers already using E-Verify
  • Immigration enforcement agencies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • All employers
  • Small businesses
  • Employers who currently hire unauthorized workers
  • Staffing agencies
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Sections 14-17 - Fraud Prevention and Enforcement

Identified Gains
Contextual inference, no direct clause citation
  • Identity theft victims
  • Social Security Administration
  • Parents of minors
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Individuals using fraudulent documents
  • Identity thieves
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Section 13 - Access to Information

Identified Gains
Contextual inference, no direct clause citation
  • DHS immigration enforcement
  • E-Verify program
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • States that decline to share DMV data
  • State residents in non-compliant states
  • Privacy advocates
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Section 5 - Establishment of Permanent E-Verify

Identified Gains
Contextual inference, no direct clause citation
  • Department of Homeland Security
  • E-Verify system administrators
  • Authorized workers
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Identified Costs
Contextual inference, no direct clause citation
  • Unauthorized workers
  • Workers with documentation issues
Model: N/A | Version: bill_summary_v2 | Source: is

Contextual inference, no direct clause citation

Legislative Progress

Introduced
Introduced Committee Passed
Sep 13, 2023

Mr. Cotton (for himself, Mr. Romney, Mrs. Capito, Mr. Cassidy, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Business
11 mentions across 8 clauses
+3 positive -8 negative

All employers hiring in the United States, Employers operating in multiple states, Employers using identity authentication technology

Positive-direction: Employers operating in multiple states, Employers using identity authentication technology, Employers who use E-Verify in good faith

Negative-direction: All employers hiring in the United States, Employers who fail to use E-Verify, Employers who hire unauthorized workers, Employers who knowingly hire unauthorized workers, Employers with existing workforce, Employers with high rates of SSN mismatches, Large employers with 10,000+ employees, Mid-size employers (20-9,999 employees)

Labor
8 mentions across 5 clauses
+5 positive -3 negative

Authorized workers, Low-wage workers earning at or near minimum wage, Unauthorized workers

Positive-direction: Authorized workers, Low-wage workers earning at or near minimum wage, Workers who want to verify their own eligibility, Workers with errors in their records, Youth workers under 20 years old

Negative-direction: Unauthorized workers, Union hiring halls, Workers with limited work authorization

Government
6 mentions across 5 clauses
+4 positive -2 negative

Department of Homeland Security, Immigration enforcement agencies, SSA Inspector General

Social Security Administration faces effects in multiple directions

Positive-direction: Department of Homeland Security, Immigration enforcement agencies

Negative-direction: SSA Inspector General

State & Local Government
4 mentions across 2 clauses
+2 positive -2 negative

State and local governments with stricter immigration enforcement, States that refuse to share DMV data, States that share DMV data with DHS

Positive-direction: State and local governments with stricter immigration enforcement, States that share DMV data with DHS

Negative-direction: States that refuse to share DMV data, States with sanctuary policies

Criminal Enterprise
3 mentions across 3 clauses
-3 negative

Document forgers and sellers, Identity thieves using stolen SSNs, Individuals using fraudulent SSNs

Small Business
2 mentions across 2 clauses
-2 negative

Small businesses with fewer than 20 employees, Small employers with fewer than 20 employees

Employment Services
2 mentions across 2 clauses
-2 negative

Staffing agencies and employment recruiters, Staffing agencies and recruiters

Retail
1 mention across 1 clause
-1 negative

Retail trade employers

18/19
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Labor Wages
Actor Mappings
"the_secretary"
→ Secretary of Labor
Domains
Immigration Employment Verification
Actor Mappings
"the_secretary"
→ Secretary of Homeland Security
"the_commissioner"
→ Commissioner of Social Security
Domains
Immigration Employment Verification
Actor Mappings
"the_secretary"
→ Secretary of Homeland Security
"the_attorney_general"
→ Attorney General
Domains
Immigration Privacy Federal Grants
Actor Mappings
"the_secretary"
→ Secretary of Homeland Security
Domains
Immigration Identity Protection
Actor Mappings
"the_secretary"
→ Secretary of Homeland Security
"the_commissioner"
→ Commissioner of Social Security

Note: The Secretary refers to Secretary of Labor in Section 4 (minimum wage) but Secretary of Homeland Security in Sections 5-18 (E-Verify and immigration enforcement)

Key Definitions

Terms defined in this bill

5 terms
"unauthorized alien" §19a

An alien who is not lawfully admitted for permanent residence or otherwise authorized to be employed

"agricultural labor or services" §19b

Has the meaning given by the Secretary of Agriculture, including agricultural labor under IRC 3121(g), agriculture under FLSA 3(f), and handling/processing of agricultural commodities

"date of hire" §19c

The date of commencement of employment for wages or other remuneration

"recruit" §19d

The act of soliciting a person in the US to refer to another for employment, applies to union hiring halls and labor service agencies

"refer" §19e

The act of sending or directing a person in the US to another for employment purposes

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology