To require employers to conduct employment eligibility verification.

Renames the basic employment eligibility verification pilot program established under the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 as the Employment Eligibility Verification System.

Directs the Secretary of Homeland Security to provide for permanent nationwide implementation of the System.

Requires entities hiring individuals for employment in the United States to participate in such System. Phases in compliance requirements over a seven-year period according to the number of persons employed by the entity. Establishes sanctions for noncompliance. Provides for voluntary participation by entities not required to participate.