A bill recently proposed by Utah lawmakers sought to require thousands of additional private companies to use E-Verify to confirm the legal eligibility of potential employees. However, construction industry professionals voiced concerns that the bill could worsen the state's already significant labor shortage, particularly in the construction industry, which is struggling to meet the growing demand for housing.

The proposed legislation, HB214, introduced by Rep. Neil Walter (R-St. George), aimed to lower the threshold for private companies required to use the web-based E-Verify system to confirm employee citizenship status. While the system is currently mandatory for companies with 150 or more employees, the bill initially proposed reducing that threshold to just five employees. The proposal was amended during the legislative process, raising the limit to 15 employees, then to 50, with the effective date of the legislation postponed until July 2026.

Despite the changes, the bill has been held up after industry professionals testified before lawmakers about the potentially adverse impact of the bill on Utah’s construction sector, agriculture, and hospitality industries. Experts warned that implementing tighter E-Verify requirements for smaller businesses could exacerbate the ongoing labor shortage and negatively affect Utah’s housing development efforts.

Mike Sowby, a board member with the Associated Builders and Contractors of Utah, explained that the bill would “cut the legs out from underneath” construction businesses, which rely heavily on a diverse labor force. He pointed out that while the 2022 change to the E-Verify law allowed construction firms to hire from a larger pool of workers, the industry still faces a “significant workforce shortage.”

In addition, Steve Waldrip, Governor Spencer Cox’s chief housing adviser, emphasized that deportations during the Trump administration had already strained the construction workforce. He referenced a report that found around 10% of both unskilled and skilled construction laborers in Utah were undocumented, adding that such workers are essential to meeting the demand for new housing in the state.

A study from last October by researchers from the University of Utah and Amherst College highlighted that deporting undocumented construction workers led to higher home prices, as it caused both a reduction in the labor supply and a decrease in residential construction. The study noted that undocumented labor plays a complementary role alongside U.S.-born workers, and removing this workforce creates a ripple effect, impacting skilled trades like plumbing and electrical work.

Industry professionals like Joe McCallister, an attorney for Hughes General Contractors, expressed frustration with the bill, emphasizing that simply expanding E-Verify requirements would not address the root causes of the workforce shortage. “We need employees, and E-Verify is not going to solve this problem. It’s certainly going to make our situation worse,” McCallister said.

Taz Biesinger, executive director of the Utah Home Builders Association, added that additional legislative measures would only complicate compliance for businesses already struggling to keep up with existing laws. Rep. Norman Thurston (R-Provo) agreed, pointing out that the bill would likely only impact law-abiding businesses while leaving those who do not comply with regulations unaffected.

Rep. James Dunnigan (R-Taylorsville) echoed these concerns, emphasizing that Utah's housing affordability efforts were being undermined by the shortage of workers. Rep. Hoang Nguyen (D-Salt Lake City) raised further alarm about the potential economic impact, noting that lowering the threshold for E-Verify compliance would mean approximately 20,000 more businesses would need to implement the system at a time when the state is already facing a "deep labor shortage."

As the bill remains on hold with limited time left in the legislative session, it remains unclear whether Utah lawmakers will move forward with any immigration-related reforms. Proponents argue that the bill is a necessary step in addressing the issue of illegal immigration, while opponents stress the urgent need for labor force solutions to support Utah's booming housing market.

Additional Concerns Raised by Industry Experts

• Many experts argue that increasing restrictions on worker eligibility could lead to slower construction timelines, which would further delay the state’s ability to meet housing demand.
• There is growing concern about the lack of enforcement mechanisms to ensure that all employers comply with new requirements.
• Utah’s economy, particularly in the construction sector, relies heavily on immigrant labor, and restrictions could result in a shift toward out-of-state workers, potentially raising labor costs.

Ultimately, lawmakers face a delicate balancing act: strengthening immigration enforcement while ensuring that Utah’s growing construction sector has the workforce necessary to support affordable housing initiatives.

Originally reported by Megan Banta in The Salt Lake Tribune.