MT HB226

Requires all Montana employers to verify each employee's legal work authorization using either the federal E-Verify program or a completed I-9 form with supporting documents within federal timelines

Employers who use E-Verify in good faith are presumed compliant and protected from penalties related to E-Verify system accuracy

Establishes escalating civil penalties: up to $500 per unauthorized worker for first violation, up to $1,000 for second violation, and up to $2,500 plus mandatory license suspension of 30 days to 6 months for third or subsequent violations

Authorizes the Department of Labor and Industry to conduct investigations, audits, and inspections of employer records with 3 business days' notice, with $500 penalty for refusal to comply

Creates the Lawful Employment Enforcement Fund to collect penalties and fund enforcement and education activities, effective July 1, 2025