Amends the definition of employer under GS 64-25, as it applies to Article 2, Verification of Work Authorization, of GS Chapter 64, to now define employer as any person, business entity or organization that transacts business in this state and that employs five (was 25) or more employees in the state. Now includes within the term any entity required to participate in E-Verify pursuant to GS 126-7.1(i) (State and local entities), GS 153A-99.1 (counties), and GS 160A-169.1 (municipalities); previously the term excluded State agencies, counties, municipalities, or other governmental bodies.

Amends GS 64-26 by adding that an employer is deemed to be in good-faith compliance with Article 2 if it timely enrolls in and uses E-Verify, properly completes and retains required forms and documentation, and does not knowingly or with reckless disregard accept fraudulent documentation. Protects these employers from civil penalties solely because an employee submitted fraudulent information or documentation that could not have reasonably been detected.

Amends GS 64-29 to require the North Carolina Commissioner of Labor (Commissioner), if, after investigating determines that a complaint was not false or frivolous, to procced according to new GS 64-30A for violations of GS 64-26 (verification of employee work authorization) or GS 64-33.1 (consequence of violations of GS 143-133.3) for violations of GS 143-133.3 (E-Verify compliance). Allows the Commissioner to conduct random or risk-based compliance checks of employers to determine compliance with GS 64-26 or GS 143-133.3; if there is a nonfrivolous possibility of a violation, requires the Commission to proceed under GS 64-30A or GS 64-33.1. Expands upon when the Commissioner may issue a subpoena for specified employment records or policies to include when it is part of a compliance check.

Repeals GS 64-30 (actions to be taken by the Commissioner upon determining that the complaint is not false or frivolous).

Enacts new GS 64-30A allowing employers a cure period when there is a possible violation of GS 64-26. Allows a cure period if the violation occurs when the Commissioner has not previously issued an order against the employer. Gives the employer 30 days after receiving notice to cure the alleged violation by enrolling in E-Verify, completing required verifications, and otherwise complying with GS 64-26. If the employer fails to cure the violation or if they are not entitled to the cure period, requires the Commissioner to hold a hearing to determine if a violation has occurred. Sets out penalties for first, second, and third or subsequent violations. Requires the Commissioner, upon concluding that there is a reasonable likelihood that an employee is an unauthorized alien, to notify US Immigration and Customs Enforcement and local law enforcement agencies.

Repeals GS 64-31, GS 64-32, and GS 64-33, which set out penalties for violations of GS 64-26.

Amends GS 64-33.1 to require the Commissioner to hold a hearing to determine if a violation of GS 143-133.3 has occurred.

Enacts new GS 64-33.2 requiring the clear proceeds of all civil penalties imposed under the Article to be remitted to the Civil Penalty and Forfeiture Fund.

Amends GS 64-34 to require the Commissioner to maintain records of compliance checks; makes additional conforming changes.

Amends GS 126-7.1 to require state agencies, departments, institutions, universities, community colleges, and local education agencies to comply with Article 2 of GS Chapter 64.

Amends GS 153A-99.1 to require counties to comply with Article 2 of GS Chapter 64. Amends GS 160A-169.1 to require the same of municipalities.

Requires the Commissioner to amend its rules and make changes consistent with the above, using temporary rulemaking when necessary.

Applies to violations occurring on or after October 1, 2026.

Amends GS 95-241 to prevent discriminating or retaliating against an employee who files a claim or provides information with respect to Article 2 of GS Chapter 64. Applies to discriminatory or retaliatory actions taken on or after October 1, 2026.

Appropriates $448,195 in recurring funds for 2026-27 from the General Fund to the Department of Labor for five full-time positions to enforce the Act. Specifies that these positions are designated as exempt policymaking positions. Effective July 1, 2026.