Texas Government Code Chapter 673 requires every state agency and any business that contracts with a state agency to register for and use the federal E-Verify system to confirm the work eligibility of new employees. Private-sector E-Verify use is generally voluntary statewide.
Government Code Chapter 673, originating from Senate Bill 374 (2017), directs each state agency to register and participate in E-Verify and to verify the employment authorization of every new employee. Section 673.003 extends the requirement to contractors that receive funding through state-agency contracts; contracts must include an E-Verify clause and termination remedies. Executive Order GA-80 (2014, reaffirmed) and later Executive Order GA-40 reinforce the obligation. Texas does not impose a statewide E-Verify mandate on purely private employers, but state and contractor coverage is uniform across all Texas cities and counties; localities cannot exempt covered employers.
Non-compliant state agencies face oversight by the State Auditor and the Governor. Contractors that fail to use E-Verify can have contracts terminated and may be barred from future state contracting opportunities.
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