State Implementation of the Legal Arizona Workers Act

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1 State Implementation of the Legal Arizona Workers Act

2 Historical Background "Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore, Send these, the homeless, tempest-tost to me, I lift my lamp beside the golden door!" -Emma Lazarus (Bronze plaque mounted on the (Bronze plaque mounted on the base of the Statue of Liberty in 1903)

3 Primary incentive for Illegal Immigration i The continuing practice of hiring unauthorized workers

4 Historic Immigration Laws Immigration & Nationality Act (INA) 1952 Immigration Reform and Control Act (IRCA) Based on the premise that primary incentive for Illegal Immigration is continuing practice of hiring unauthorized workers -Included sanctions against employers -Border enforcement -Legalized 2.7 million illegal immigrants

5 Impact of Illegal Immigration Crime Unreported Income Strain on government resources

6 What is the Legal Arizona Workers Act? ARS TO a.k.a Fair and Legal Employment Act a.k.a.arizona Employer Sanctions Law Makes it unlawful for an employer to knowingly or intentionally employ an unauthorized immigrant Suspends or revokes business licenses of employers who violate the law Requires employers to run all new hires through E-Verify AG s Office must compile a public database of employers who violate this law Empowers the State Attorney General and County Attorney to investigate false and frivolous complaints against an employer Notify Immigration & Customs Enforcement (ICE) of unauthorized aliens Notify local law enforcement of unauthorized aliens

7 Who is affected by the Legal AZ Workers Act? Any unauthorized alien Any employee Every employer in Arizona Every government entity (state and any political subdivision of Arizona) that receives and uses tax revenues

8 What is E-Verify? Compares employee info to Social Security Administration (SSA) and Dept of Homeland Security (DHS) databases Inquiries after employment only If employee info is not confirmed by SSA or DHS, employer is notified Employer has 10 days to terminate the unauthorized employee

9 Government Procurement & E- Verify Requirements ARS passed by state lawmakers prohibiting a government entity from awarding a contract to any contractor or subcontractor that fails to verify the employment eligibility of new hires.

10 How the State is implementing the Legal AZ Workers Act I. By including the following language in every state contract: Compliance Requirements for A.R.S , Government Procurement: E-verify Requirement 1. The econtractor aco warrants a scompliance cewith all Federal edea laws sand regulations relating to employees and warrants its compliance with Section ARS , Subsection A. 2. A breach of a warranty regarding compliance with immigration laws and regulations shall be deemed a material breach of the contract and the contractor may be subject to penalties up to and including termination of the contract. 3. Failure to comply pywith a State audit process to randomly verify the employment records of contractors and subcontractors shall be deemed a material breach of the contract and the contractor may be subject to penalties up to and including termination of the contract. 4. The State agency retains the legal right to inspect the papers of any employee who works on the contract to ensure that the contractor or subcontractor is complying with the warranty under paragraph 1.

11 How the State is implementing this law (continued) II. By adopting the following compliance procedures: Service contracts >$50,000 from all State agencies are submitted to SPO every fiscal quarter SPO uses a random sampling program to select approx 10% of the contracts submitted SPO requires agencies to verify the employment authorization of all randomly selected contractors The contractor is given three chances to respond to the notices from the state agencies If contractor does not respond or is not compliant, the state agency will notify the Attorney General s Office. The agency may take additional action, up to and including termination of the contract as the agency deems in the best interest t of the state. t

12 Consequences of a government entity s non-compliance Violation of State Law ARS and federal immigration laws Administrative costs and delays

13 Conclusion

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