SAFE HIRE Act

The SAFE HIRE Act would require certain public issuers to certify their employment eligibility compliance in annual SEC filings. Specifically, the principal executive officer and the principal human resources officer of each covered employer must attest, with a formal certification, that their company’s annual report accurately reflects its employment practices, includes effective internal controls related to hiring and verification (including Form I-9 and E-Verify) and that any known deficiencies or violations of federal employment eligibility laws have been disclosed to the appropriate authorities. The act imposes criminal penalties for false certification or willful non-compliance and requires the SEC, within one year of enactment, to implement rules to include this certification in Form 10-K (or successor forms) and to make these certifications publicly available. In addition to certification, the bill creates a process for identifying and reporting significant deficiencies and material violations to the Department of Homeland Security and the Department of Justice, and it defines the scope of “covered employers” as issuers of securities registered under the Securities Act or those required to file certain reports with the SEC. A key enforcement detail is that the penalties for false certification are steep, and the bill directs regulators to craft accompanying rules within a year of enactment.