06/05/2008
from Karen Harned, NFIB Small Business Legal Center
A federal judge in Oklahoma City June 4 postponed enforcement of portions of H.B. 1804, the state's immigration law. The judge found that it is "substantially likely" that the law is preempted by federal immigration law.
Judge Robin J. Cauthron of the U.S. District Court for the Western District of Oklahoma granted a preliminary injunction barring certain portions of the law from becoming enforceable as scheduled on July 1 -- including a requirement that public employers and those who contract with them must use E-Verify or another approved verification system to prove the legal status of all new hires.
The ruling means that until further notice, Oklahoma employers do not need to comply with the requirements of H.B. 1804.
For more information on H.B. 1804, see below. If you have any questions, please feel free to contact the NFIB Small Business Legal Center at legalcenter@nfib.org:
Who Is Impacted by H.B. 1804:
- Businesses Who Contract With a State or Local Government Entity: Due to the court decision, effective date of July 1, 2008, has been postponed indefinitely
- A contractor or sub-contractor performing work for the state or a local government entity must participate in a Status Verification System, such as E-Verify.
- This requirement does not apply to contracts with state or local entities that were entered into before July 1, 2008, even if the contract covers services provided after that date.
- Private Businesses: Effective date of July 1, 2008, postponed indefinitely
- All Employers: Any employer that terminates an eligible worker while knowingly employing an illegal worker in a job of similar scope to the job of the terminated employee can be sued for wrongful termination for discriminatory conduct.
- Businesses Using Independent Contractors: If an individual independent contractor fails to provide to the business documentation to verify the independent contractor's employment authorization, the business must withhold state income tax at the top marginal income tax rate.
- Safe Harbor Provision for Private Businesses and State/Local Government Contractors: Effective date of July 1, 2008, postponed indefinitely
- Employers enrolled in and using a Status Verification System to verify the employment eligibility of employees hired after July 1, 2008, are exempt from liability, investigation or suit if the business terminates an eligible worker while unknowingly employing an illegal worker.
