NFIB

In 2007, Arizona passed the toughest immigration law in the country. The law became effective Jan. 1, 2008.

On May 1, the governor signed HB 2745, making changes to the Legal Arizona Workers Act of 2007. The provisions include:

• Clarifying to whom the employer sanctions law applies. The employer sanctions law applies only for employees hired on or after Jan. 1, 2008. LAWA will no longer apply to individuals who started employment at a business prior to that date.
• Adding provisions regarding employers who pay in cash. Employers face new penalties if they pay workers in cash and fail to withhold taxes, report new hires for child support garnishment, pay unemployment insurance or workers compensation premiums.
• Changing investigation procedures. Complaints submitted on the newly created official complaint form must be investigated by the applicable county attorney or attorney general. The law also provides that while anonymous complaints are not prohibited, there is no mandatory investigation for anonymous complaints.
• Including all sheriffs' offices in the investigation process. In the original law, only the county attorneys and attorney general could investigate complaints under LAWA. The new amendments add that the sheriffs and other local law enforcement agencies may participate in investigations under LAWA.
• Adding the "good faith" defense for occasional technical violations. Employers who make a good faith attempt to comply with LAWA should not be found to have committed a violation for "isolated, sporadic or accidental, technical or procedural failure[s]."
• Adding a voluntary opt-in defense regarding existing employees. Employers are given a new defense to sanctions under LAWA if they enroll in a voluntary employer-enhanced compliance program that includes Social Security Number Verification Service, with certain mandated follow-up steps, for existing employees. Employers who enroll in this voluntary program must submit an affidavit to the Attorney General stating that the employer will verify new hires in E-Verify and will verify the SSNs of employees at the company who have not been processed through E-verify. (NOTE: The SSNVS program is a covered topic on the Immigration Compliance DVD.)
• Addressing business location issue. If a business has a license specific to the location where an undocumented employee worked, only that license would be suspended or revoked. If a business has only general licenses, however, all of its licenses are still at risk.
  Adding independent contractors' hiring practices provisions. Employers may now be liable for intentionally using independent contractors who employ unauthorized workers.
• Providing a limitation on race-based complaints. Complaints based solely on race or national origin shall not be investigated, but complaints based partially or primarily on race and national origin can be investigated.
• Adding requirement for use of E-verify when requesting grants and contracting with government. Companies who enter into contracts with state or local governments or receive financial assistance must enroll in the E-Verify Program and use it for new hires.

NFIB encourages members to be aware of the 2008 law changes.
 
Resources:
The U.S. Citizenship and Immigration Services issued a new Form I-9 to verify employees' eligibility for employment. All employers must use the new form as of Dec. 26, 2007. Previous versions of Form I-9, in English or Spanish, are no longer valid after Dec. 26, 2007. Employers who are still using the old forms will be subject to applicable penalties and fines. Get more information and a copy of the form.

As a benefit to NFIB members, we have created an immigration compliance DVD. Please contact the NFIB/Arizona office by telephone at 602-263-7690. Please have your member number when making the request for the DVD.

Download the NFIB Model Employee Handbook for Small Business
Register for E-Verify (formally know as Federal Basic Pilot Program)
Download the E-Verify Poster for your small business (626KB, PDF)
Download the Anti-Discrimination Poster for your small business (1,233KB, PDF)