Under current law, employers are required to examine, and retain records of examining, the legal work status of new employees. The bill enacts the "Colorado Mandatory E-verify Act", which requires all employers in the state, by January 1, 2013, to instead participate in the federal electronic verification program (e-verify program) for purposes of verifying the work eligibility status of all new employees hired by an employer. Employers are subject to fines of up to $5,000 for a first offense and up to $25,000 for a second offense for failing to participate in the e-verify program. For subsequent offenses, an employer is subject to a fine of up to $25,000 and a 6-month suspension of the employer's business licenses.

The department of labor and employment (department) must notify employers via quarterly electronic publications and post a notice on its web site explaining the requirements of the act to employers. Additionally, the bill requires the secretary of state, in consultation with the department, to include information about the requirements of the act on its web site.