A provision in Idaho's S1247 creates a new compliance requirement for larger professional services firms—and most owners haven't heard about it yet.
Most professional services owners in Idaho don't realize that S1247, a bill focused on law enforcement memoranda of agreement, contains a buried provision that will directly affect any firm with more than 150 employees that holds a public contract.
Starting January 1, 2027, businesses meeting those criteria must enroll in and use E-Verify—the federal employment eligibility verification system—for all new hires. This isn't optional. It's a legal requirement tied to government contracting.
The rule applies to professional services firms with over 150 employees that contract with any government entity—state, county, or local. This includes architecture firms, engineering companies, accounting practices, consulting groups, and other service providers that bid on or hold public sector work.
If your firm is smaller, or if you don't currently hold government contracts, this doesn't apply to you yet. But if you're in the 150-plus range and considering public sector work, this becomes part of your cost calculation.
E-Verify enrollment requires you to verify the employment eligibility of every new hire through the federal system. The process itself is straightforward—you enter employee information and receive confirmation or a mismatch notice. But the compliance infrastructure takes time and resources to implement.
Non-compliance carries real teeth. The law allows for civil enforcement, mandatory termination of any unauthorized workers, a one-year probationary reporting period during which you'll be monitored, and potential contract termination for repeat violations. In other words, failing to comply doesn't just mean a fine—it can cost you the government contract itself.
For firms currently bidding on or holding government contracts, this creates a new operational cost: E-Verify system enrollment, staff training, and ongoing verification procedures. For firms considering entering the government contracting space, it's a threshold consideration—the compliance burden increases once you cross the 150-employee line.
The effective date gives you time to prepare. January 1, 2027 is when the requirement takes effect, which means firms should be planning implementation now rather than scrambling in late 2026.
This provision is found in S1247, §44-302(2)(b), on Page 1 of the bill. It was added to existing Idaho law governing employment verification and government contracting.
If your firm falls into this category, it's worth reviewing your current government contracts and your hiring pipeline to understand the scope of what E-Verify enrollment will require. The Idaho Department of Labor can provide guidance on the enrollment process itself, but understanding the business implications—contract risk, compliance costs, and timeline—is something worth doing now.
Source: Idaho S1247, §44-302(2)(b)