06/13/2008
On June 4, South Carolina Gov. Mark Sanford signed the South Carolina Illegal Immigration Reform Act. The law requires all businesses in the state to verify that all new employees are authorized to work in the United States. Failure to do so could lead to stiff fines and penalties.
As a business owner, it is critical that you understand your obligations under the law. The requirements are outlined below. If you have any questions, please contact the NFIB Small Business Legal Center at legalcenter@nfib.org.
Your responsibilities as a business owner:
- As of July 1, 2009 all private employers will be required to have a state employment license. If this license becomes suspended or revoked, the employer cannot operate.
- On July 1, 2009 all private employers with 100 or more employees must be registered in AND use the federal government's E-Verify system, an online system that verifies a worker's authorization; OR employ only individuals that have a driver's license or ID card issued by the South Carolina Department of Motor Vehicles. Businesses employing fewer than 100 employees, must comply by July 1, 2010.
- Employers must verify a new employee's authorization within five days from the time employment begins. Please note that the federal government's Form I-9 must be completed for all new employees within the first three days of their start date.
- The law also allows an authorized employee that is terminated and replaced with an illegal worker to sue the employer for wrongful termination.
Potential penalties for noncompliance:
- Businesses found in violation of the law will be subject to a fine ranging from $100 to $1,000.
- The state may also impose a suspension or revocation of the employer's employment license. During the period that the license is suspended, the employer cannot engage in business.

