State Implementation of the L l A i W k ALegal Arizona Workers Act

Historical BackgroundHistorical Background

"Gi ti d"Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your yteeming shore, Send these, the homeless, tempest-tost to me, I lift my lamp beside the goldenI 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)

Primary incentive for Illegal I i iImmigration

• The continuing practice of hiring unauthorized workersunauthorized workers

Historic Immigration LawsHistoric Immigration Laws• Immigration & Nationality Act (INA) 1952g y ( )• Immigration Reform and Control Act (IRCA)

1986-Based on the premise that primary incentive for Illegal Immigration is continuing practice of hiring unauthorized workersunauthorized workers-Included sanctions against employers-Border enforcement-Border enforcement-Legalized 2.7 million illegal immigrants

Impact of Illegal ImmigrationImpact of Illegal Immigration

• CrimeCrime• Unreported Income• Strain on governmentStrain on government

resources

What is the Legal Arizona Workers A ?Act?

ARS 23-211 TO 23-214k F i d L l E l Aa.k.a Fair and Legal Employment Act

a.k.a.Arizona Employer Sanctions Law

• Makes it unlawful for an employer to knowingly or intentionally• 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• 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

Who is affected by the Legal AZ W k A ?Workers Act?

• Any unauthorized alienAny unauthorized alien• Any employee

E l i A i• Every employer in Arizona• Every government entity (state and any

political subdivision of Arizona) that receives and uses tax revenues

What is E-Verify?What is E Verify?• Compares employee info to Social Security

Administration (SSA) and Dept of HomelandAdministration (SSA) and Dept of Homeland Security (DHS) databases

• Inquiries after employment only• Inquiries after employment only• If employee info is not confirmed by SSA or

DHS employer is notifiedDHS, employer is notified • Employer has 10 days to terminate the

unauthorized employeeunauthorized employeewww.dhs.govwww vis-dhs comwww.vis-dhs.com

Government Procurement & E-V if R iVerify Requirements

• ARS 41-4401 passed by state lawmakersARS 41 4401 passed by state lawmakers prohibiting a government entity from awarding a contract to any contractor orawarding a contract to any contractor or subcontractor that fails to verify the employment eligibility of new hiresemployment eligibility of new hires.

How the State is implementing the L l AZ W k ALegal AZ Workers Act

I. By including the following language in every state contract:

Compliance Requirements for A.R.S. 41-4401, Government Procurement: E-verify Requirement1. The contractor warrants compliance with all Federal laws and e co ac o a a s co p a ce a ede a a s a dregulations relating to employees and warrants its compliance with Section ARS 23-214, Subsection A.2. A breach of a warranty regarding compliance with immigration laws and regulations shall be deemed a material breach of the contractlaws 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 with a State audit process to randomly verify p y p y ythe 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 any4. The State agency retains the legal right to inspect the papers of any employee who works on the contract to ensure that the contractor orsubcontractor is complying with the warranty under paragraph 1.

How the State is implementing this l ( i d)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 p g p g pp

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 p p ,

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 d i th b t i t t f th t tdeems in the best interest of the state.

Consequences of a government i ’ lientity’s non-compliance

• Violation of State Law ARS 41-4401 andViolation of State Law ARS 41 4401 and federal immigration laws

• Administrative costs and delays• Administrative costs and delays

ConclusionConclusion