Understanding North Carolina's E-Verify Contracting Prohibition

NOTE: this document was revised August 25, 2014, to reflect changes to city and county contracts made by the General Assembly during the 2014 session.

During the 2013 session of the North Carolina General Assembly, the legislature enacted the RECLAIM NC act (S.L. 2013-418; HB786) which prohibits state and local governments from entering into certain contracts if the contractor or that contractor's subcontractors are not compliant with North Carolina's E-Verify law. The E-Verify statutes were amended during the 2014 session (HB369) to scale back the application of the prohibition for city and county contracts to only purchase and construction or repair contracts in the formal bidding range (previously, the prohibition applies to all city and county contracts). The following pages provide answers to frequently asked questions as well as examples of contract provision and affidavits used use in a good faith effort to ensure compliance with the law. The text of the status applicable to local governments is available at the end of the document.