More than 200 businesses in Arizona are challenging a state law that includes the toughest employer sanctions in the nation. The law, which started to take effect Jan. 1, requires Arizona's approximately 150,000 businesses to verify the legal status of all new hires through the federal E-Verify program, a voluntary system that allows employers to check the legitimacy of Social Security numbers and identity documents provided by job applicants. The law is being phased in, and no companies have been charged yet under its provisions.
Arizona companies found to have hired an undocumented worker are severely punished -- with fines and a 10-day suspension of their business license for a first offense. A second violation within the three-year probationary period results in the removal of all state licenses and permits, effectively forcing the company to shut down.
The law was upheld by a federal court in February, but a coalition of businesses appealed to the 9th U.S. Circuit Court of Appeals on the grounds that only the federal government has the power to enforce immigration restrictions. They also argued that the E-Verify system is a voluntary measure that can't be forced on businesses.
Opponents say the law is already taking a big economic toll on the state. "It's been a headache for a lot of companies. Many had to stop their growth plans last summer -- projects that were being developed were just shut down," says Julie Pace, an attorney with Ballard Spahr Andrews & Ingersoll who is representing the companies in the suit. "The law is really affecting investment capital, construction is slowing down, and retail sales are way down," Pace says.
Others say the retrenchment is mostly a result of the national economic slowdown, but they worry whether Arizona will be able to participate in the recovery when it comes. "The Latino community is moving away because they don't feel welcome in Arizona anymore," says David Jones, president and CEO of the Arizona Contractors Association. "The question is, when the economy turns back -- and we are estimating that in the next 18 to 24 months -- will they return?"
Supporters say the law is necessary to help legal workers. They cite a study by the Maricopa County Attorney's Office that estimated Arizona workers were losing $1.4 billion in wages annually because local companies were hiring undocumented workers. "It's simple, it'll prove to be the most effective, nondiscriminatory measure in that it just asks people to follow the law," says Russell Pearce, a state representative who was instrumental in passing the law.
The law was signed reluctantly by Democratic Gov. Janet Napolitano, who said Arizona was forced to act because Congress had failed in its obligation to come up with a national solution. "Congress has dropped the ball miserably here," says Jeanine L'Ecuyer, press secretary for Napolitano.
Sheridan Bailey, owner of Ironco Enterprises, founder of Arizona Employers for Immigration Reform and one of those challenging the law in court, says Arizona needs a national guest worker program as part of a comprehensive immigration law. "There is no way to maintain a 3% GDP without additional workers," Bailey says, adding that there must also be a way to help the nearly 12 million illegal immigrants who are already living in the country become legal workers.
Congress' chances of tackling the immigration problem will improve next year, no matter who wins the presidency. Both Republican John McCain and Democrat Barack Obama are in favor of a comprehensive plan that includes tougher border controls, a large guest worker program and a path for illegal immigrants in the U.S. to become legal residents.
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POSTED BY: WarriorJames (July 07, 2008 11:44 AM)
You know, all those hot-shot jobs of busing tables for restaurants where you eat, cleaning hotel rooms where you stay, tending the landscape in your neighborhoods, building the houses where you live, picking the produce for your meals... Hmmm, where exactly are the millions of citizens just begging to do any of that work? All of you angry and hostile people just wake up already. Man, I'd rather the authorities go after murderers and rapists and other violent criminals who roam the streets and threaten us to no end. I'll take a hard-working, decent living, productive illegal immigrant than any violent, murdering, raping, drugging, robbing citizen any day.
POSTED BY: Kent (July 07, 2008 04:54 PM)
It seems that I take exception to some of what the other three comments have been. I do applaud what Arizona is doing to halt the hiring of illegals but we must deal with the 12 million already here by getting them documented and paying taxes but not necessarilly giving them citizenship either. They must go through the same process of citizenship as others except that it should be expedited if residency can be proven that they have been here for greater than five years. Further, any children born in the USA should not automatically be given citizenship unless the parents are citizens nor should services at schools or hospitals be given unless they are citizens. Our Mexico neighbors are good folks and it's well established that we need SOME of them as much as they need us but they must honor our laws just as the rest of us must do.
POSTED BY: Patrick (July 09, 2008 09:57 AM)
There are some excellent comments and thoughts concerning this article. I very much agree that, for those who want to come to the U.S., work hard, raise their families, and contribute to our society AS AMERICANS, that they should be welcomed with open arms. Those who are not willing to live by our laws and be a part of our country need to be somewhere else.
By the way, the 12,000,000 number is not accurate. That's the number of illegal aliens totally. The number of workers is about 8,100,000.
A couple of other important items. The IRS does not have a problem with illegals being here as long as they pay their taxes. As I understand it, this irritates the immigration folks no end.
Second item - it is estimated that if we were able to deport all of those 8 million works, our economy would lose somewhere around $3 trillion.
Considering how effectively the U.S. government has dealt with the subprime mortgage crisis - still not having done so when whatever they do will be too little too late - I don't think our economy can take another huge hit right now.
My opinion is that the 18-24 month recovery estimate is way optimistic. I believe we are headed for a depression that will rival the 1930s.