Arizona Tweaks Employer Sanctions Law

The bill made a number of changes, some sought by employers, and others sought by enforcement advocates.  Employers won a clarification that states that the law only applies to employees hired after January 1, 2008, which was a point of concern for employers.  In addition, the bill provides a defense for employers who can show that they made a good faith effort to verify employment eligibility through federal databases, and who voluntarily provide supporting documentation to prosecutors.

The biggest concern for employers is a new provision that allows prosecutors to pursue sanctions against employers who utilize subcontractors who hire undocumented immigrants.

COUNSEL TO MANAGEMENT:

 The employer sanctions law remains a serious concern for businesses that operate in Arizona.  While the clarifications provide some good news, the subcontractor liability provisions create additional complications.  Employers who use subcontractors to provide labor must confirm that their subcontractors are registered with the federal E-Verify program, and must request proof of verification of all employees hired after January 1, 2008.