The "Legal Workforce Act" aims to establish a mandatory and permanent electronic employment eligibility verification system for all employers in the United States. This system, patterned after the existing E-Verify program, is designed to ensure that individuals hired, recruited, or referred for employment are authorized to work in the country. It amends the Immigration and Nationality Act to integrate these requirements directly into federal law.

The bill outlines a phased implementation schedule for employers, with larger businesses required to comply sooner than smaller ones, ranging from 6 to 24 months after enactment. Agricultural employers receive a longer transition period of 30 months. Employers must attest under penalty of perjury to verifying an individual's identity and work authorization by examining specific documents and making an inquiry to the electronic verification system.

The electronic verification system, administered by the Department of Homeland Security in consultation with the Social Security Administration, must provide an initial confirmation or tentative non-confirmation within three working days. If a tentative non-confirmation occurs, a secondary verification process is initiated, with a final determination expected within ten working days. Employers are prohibited from terminating or rescinding job offers based on a tentative non-confirmation.

Beyond new hires, the bill mandates verification for certain existing employees, including those in government, federal contractors, and critical infrastructure, as well as employees whose Social Security numbers show unusual multiple use. Employers can also voluntarily verify other current employees. To combat fraud, the bill requires programs to block misused Social Security numbers, allow individuals to suspend their SSN use for verification, and enable parents to protect their children's identities.

The legislation significantly increases civil monetary penalties for employers who violate employment eligibility verification requirements, with fines ranging from $2,500 to $25,000 for hiring unauthorized aliens and up to $25,000 for paperwork violations. Repeat violators may face debarment from federal contracts, grants, or cooperative agreements. A good faith defense is provided for compliant employers, but it does not apply if verification is not sought or obtained within specified timeframes.

The Act establishes a single national policy by preempting state and local laws related to the employment verification of unauthorized aliens. However, it permits states to enforce the federal provisions at their own cost, provided they adhere to federal regulations and penalty structures. The bill also creates an office within the Department of Homeland Security to receive and investigate complaints from state and local government agencies regarding potential violations.