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DISABILITY DISCRIMINATION — 7/19/07

Governor Napolitano signs employer sanctions bill

Governor Janet Napolitano (D-Ariz) has signed the Legal Arizona Workers Act (HB 2779), a new law that imposes penalties on employers who hire illegal immigrants. At the same time, Napolitano announced she is willing to call for a special session of the Arizona State Legislature to repair defects in the bill.

In a written statement accompanying the bill, the Governor, who signed the bill on July 2, 2007, said she took the tandem action because Congress had failed miserably. She wrote, "Immigration is a federal responsibility, but I signed HB 2779 because it is now abundantly clear that Congress finds itself incapable of coping with the comprehensive immigration reforms our country needs. I signed it, too, out of the realization that the flow of illegal immigration into our state is due to the constant demand of some employers for cheap, undocumented labor."

According to the statement, HB 2779 takes the most aggressive action in the country against employers who knowingly or intentionally hire undocumented workers. The law requires employers to verify that the individuals they employ are present in the country legally. Knowing or intentional failure to do so will cause the employer's business licenses to be suspended. A second offense can result in the "business death penalty" – permanent revocation of an employer's licenses to do business in Arizona.

Yet, said Napolitano, the bill also contains flaws that must be addressed: (1) the bill does not adequately protect critical infrastructure, like hospitals, nursing homes and power plants, if they are shut down because of a single wrongful employment decision; (2) the revocation provision is overbroad, causing a business with multiple locations to face shutdown of its entire operation based on an infraction that occurred at only one location; (3) the bill is underfunded (only $100,000 has been appropriated by the Attorney General’s office for an entirely new database to investigate complaints statewide and only $70,000 has been appropriated to notify employers of the change in the law); (4) there is no express provision protecting Arizona citizens or legal residents from discrimination under the terms of the bill; and (5) the bill cites the wrong portion of a federal law.

The bill's provisions do not take effect until January of 2008, allowing ample time for the state legislature to pass the necessary improvements to the law. Governor Napolitano is willing to call for the special session to occur sometime in the fall, but did not set the specific date until she has had the opportunity to consult with legislative leaders. The purpose of the special session will be clear: to correct and clarify the law, not to undercut it.

Along with signing HB 2779, the Governor also sent a letter to Senate Majority Leader Harry Reid (D-Nev), and Speaker of the House Nancy Pelosi (D-Cal). In it, she asks for improvements to the federal government’s Basic Pilot program, which helps employers verify new employees' work eligibility. Napolitano has also directed her own Departments of Homeland Security and Public Safety to intensify efforts related to intercepting fraudulent documents used in the business of illegal immigration and to conduct training with businesses to aid them in detecting fraudulent documents.

Finally, in a letter to the Special Agent in Charge for Immigration and Customs Enforcement (ICE) in Arizona, the Governor asked that the state be notified when ICE officers encounter evidence of employers knowingly or intentionally employing illegal immigrants. Copies of the signing statements and letters are attached can be found at: Website.

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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