Indiana Senate approves employer penalties for undocumented workers

Copyright 2009 M. Lee Smith Publishers & Printers
INDIANA EMPLOYMENT LAW LETTER
APRIL, 2009
Volume 19, Issue 4

Baker & Daniels

With a new administration following on the heels of congressional amendments to the Americans with Disabilities Act and the Family and Medical Leave Act, Indiana employers are riding a changing wave of regulation. In addition to numerous federal mandates, you should keep an eye on Senate Bill (SB) 580, which could impose serious sanctions for "knowingly" employing undocumented workers.

Immigration hits home

On January 16, 2009, Senator Mike Delph (R-Carmel) proposed SB 580, a bill designed to prohibit Indiana employers from "knowingly" hiring undocumented workers.

On February 24, the Republican-controlled Senate voted 37-13 in favor of the bill.

SB 580 would place employers that violate the prohibition on a three-year probation, during which time they would be required to submit quarterly reports reflecting all new hires to the Office of the Indiana Attorney General. Employers committing a second violation within seven years of the first violation could lose their state business license for up to 10 days. A third violation within seven years could result in permanent business license suspension.

The legislation would provide what Delph calls a "safe harbor" for employers using E-Verify ― a voluntary web-based program created and administered by the U.S. Citizenship and Immigration Services and the Social Security Administration that verifies whether an employee is authorized to work in the United States. Use of E- Verify has risen more than 400 percent since 2007.

SB 580 has many other aspects aimed at addressing illegal immigration across Indiana, including provisions that:

(*) require the Indiana Department of Labor to determine the immigration status of an applicant for unemployment benefit eligibility and that initial claims be filed in person using documentation approved by the department; (*) prohibit the employment of illegal immigrants by state agencies and public contractors; and

(*) increase penalties for anyone who knowingly or intentionally transports, conceals, harbors, or shields from detection an illegal immigrant for commercial or private financial gain.

Controversy surrounding the bill

SB 580 is not without its detractors. Some opponents argue that the bill treads too far into the debate on immigration, which has typically been viewed as a federal regulation issue. Others, including Senator Gary Dillon (R-Columbia City), have criticized the bill, citing potential harmful effects on undocumented immigrant families in the United States. Some community groups warn about the bill's potential to lead employers to discriminate against certain groups of workers. Also weighing in is the Indiana Chamber of Commerce, which opposes SB 580, stating that the suspension of a business license is too harsh a penalty, especially in the current struggling economy.

Proponents of the bill defend it as a measure to protect Hoosier jobs and a pragmatic approach to address illegal immigration at the state level. "The Senate came together today and sent a clear message that we will no longer tolerate this failure of the federal government to protect our borders and ensure our national security," Delph said.

This is not the first time the Indiana Legislature has struggled with the issue. Last year, both the House and the Senate passed differing versions of an immigration reform bill, but they never reached a compromise.

Indiana isn't the first state to see a bill like SB 580. Arizona, Mississippi, and South Carolina have passed similar bills that apply to employers. Numerous other states have passed bills that apply only to state employers or state contractors. Legislators in other states will likely face a growing number of state-level immigration reform measures in the coming year.

What happens now?

SB 580 will proceed to the Indiana House, where it will be sponsored by Representative Vern Tincher (D-Riley). We will keep you updated on any developments. Copyright 2009 M. Lee Smith Publishers LLC

http://www6.lexisnexis.com/publisher/En ... 67&start=1