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View impending penalties to hiring illegals.

IMMIGRATION REFORM CONTAINS EMPLOYER PENALTIES

ISSUE
Members of the conference committee of the House and Senate will be meeting in the coming months to discuss their immigration reform bills. These bills have economic implications on businesses, which either unknowingly or intentionally, hire undocumented illegal alien workers.

BACKGROUND
Congress adopted penalties for employers who hired illegal aliens in the 1986 Immigration Reform and Control Act (IRCA). In December of 2005, the House of Representatives passed the "Border Protection, Antiterrorism, Illegal Immigration Act of 2005", Title VII (HR 4437). The Senate, on May 25, 2006, passed the Comprehensive Immigration Reform Act of 2006,Title III (SB 2611). Both bills could create sweeping changes in penalties for the hiring of undocumented alien workers.

AFFECTS OF ADOPTION OF EITHER BILL

• Implementation of an Electronic Employment Verification System (EEVS)
• Construction of fencing along the U.S.-Mexico border
• Increased number of worksite enforcement investigators

COMPARISON OF SB 2611 AND HR 4437

PROPOSED CHANGES UNDER SENATE BILL 2611

• Increase in number of Border Patrol agents and use of National Guard to tour border regions
• Use of contract, subcontract or exchange of unauthorized worker is prohibited.
• Employers will have 18 months to begin use of electronic system to verify legality of new hires.
• Employers may be required to re-verify the existing workforce after 180 days.
• Compliance penalties for first time violation $500.00 to $4,000.00
• Repeat violations in 12-month period will have fines of $4,000.00 to $10,000.00
• Continued violations in a two year period will result in fines of $6,000.00 to $20,000.00
• Recordkeeping and verification practice fines of $200.00 to $2,000.00 with repeat violators receiving a fine of $400.00 to $4,000.00 for the first year and $6,000.00 in the second year.
• All fines are deposited into the Employer Compliance Fund
• Criminal penalties apply for those who knowingly and repeatedly hire illegal aliens and fail to use the EEVS. This would result in a fine of no more than $20,000.00 for each unauthorized alien and/or imprisonment of no more than 3 years. Employers must terminate undocumented workers and report information to Secretary to assist in enforcing immigration laws.

PROP0SED CHANGES UNDER HOUSE BILL 4437

• The EEVS would be implemented over a 3-year period for all Federal, State, and Local governments and some critical infrastructure. All other employers will have a 6-year timeline for implementation and re-verification of all employees.
• Employers must terminate non-compliant workers but do not need to notify the Secretary with such information.
• Civil penalties for hiring or continued employment of unauthorized workers are fines of $5,000.00 to $7,000.00 for first violation. Fines of $10,000.00 to $15,000.00 for repeat violations over a 12-month period and fines of $25,000.00 to $40,000.00 over a two-year period.
• Failure to keep records or follow appropriate verification practices is set at fines of between $1,000.00 and $25,000.00.
• Criminal penalties under HR 4437 include a $50,000.00 fine for each unauthorized alien and/or imprisonment for no less than 1-year.

WHAT'S NEXT

Members of the Senate and House will meet in conference in the latter part of June to address their concerns over the differences of the two bills. The Senate bill brings to the conference more border security, interior enforcement, a temporary worker program that would match workers to employees, and a way to implement undocumented workers. The House bill promotes a new employer electronic government verification system, with large increases in penalties, and re-verification of some 140 million employees. As the conference on immigration reform convenes, we will keep you updated.

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