Employers Taking the Heat on Immigration
The feds are stepping up audits and fines while states are imposing even harsher penalties on employers who hire illegal immigrants.
In the battle against illegal immigration, the latest tactic is to hammer employers, putting the onus on them to discourage illicit crossings by ensuring that illegals aren’t able to find U.S. jobs.
Eighteen states now require the use of E-Verify, Uncle Sam’s massive national database of legitimate Social Security numbers and their owners. The exact provisions vary from state to state; some exempt small firms from the requirement, for example. Some hit noncompliant employers very hard. Arizona, Mississippi and Alabama, for instance, can suspend or even revoke the business licenses of companies that knowingly hire folks with no authorization to work. In South Carolina, hiring illegal immigrants is a felony punishable by up to five years in prison.
Now that the Supreme Court has upheld Arizona’s law, other states are headed down similar paths. For companies with employees in multiple states, this hodgepodge approach is a nightmare, making them toe different marks in different locations.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In addition, E-Verify remains a flawed system. It’s prone to errors, particularly false negatives. Women who change surnames after marrying or divorcing, for example, often get a thumbs-down despite having a green card.
Meanwhile, the feds are cracking down on employers via paperwork audits. With just three days’ notice, immigration officials swoop in to check the I-9 forms that firms must file attesting to the eligibility of new employees to work in the U.S. Both the number of audits conducted and the amount of fines collected are way up in recent months, and even technical errors, such as lack of a ZIP code on an address, are prompting fines.
There’s little hope of relief for at least two or three years. Business groups are pushing for a uniform federal law on E-Verify to preempt the patchwork quilt of state rules and regulations. They also want to raise the number of H-1B visas available for highly skilled workers, knowing that when the economy picks up, needs will quickly dwarf the current quota.
Odds are President Obama will renew his pledge for comprehensive reform in the coming months. He will be eager to keep the growing Hispanic population voting blue in 2012.
But the politics of immigration law make even limited legislation a long shot. Democrats will push to add a path for illegals who are already here to earn U.S. citizenship. Republicans will want to end automatic citizenship for children born in the U.S., if their parents are illegal. GOP lawmakers will also insist on stricter deportation policies.
Moreover, Congress has plenty of other pressing problems to deal with — sluggish economic growth, high unemployment, an out-of-control federal budget, among others. So an overhaul of the immigration system isn’t likely to get a lot of attention between now and the 2012 election.
And as long as the feds stay quiet, states will march in to fill the void.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Jim Carrey Ran Out of Money in Retirement. Will You?
Cash-strapped retirees are returning to the workforce. How to prevent becoming one of them.
By Donna Fuscaldo Published
-
Stock Market Today: Broadcom Earnings Boost the Nasdaq
Broadcom became the latest member of the $1 trillion market-cap club after its quarterly results, while RH also rallied on earnings.
By Karee Venema Published
-
AI Regulation is Looming: Kiplinger Economic Forecasts
Economic Forecasts Find out what Washington and regulators have planned for artificial intelligence.
By John Miley Published
-
The Biden Tax Plan: How the Build Back Better Act Could Affect Your Tax Bill
Politics Depending on your income, the Build Back Better Act recently passed by the House could boost or cut your future tax bills.
By Rocky Mengle Published
-
Kiplinger's 2020 Election Forecast
Politics For nearly a century, The Kiplinger Letter has forecasted the outcome of presidential elections to keep readers informed of what's coming and what it means for them. Here's our call for 2020.
By The Kiplinger Washington Editors Published
-
The 2020 Election and Your Money
Politics We’ve assessed how the presidential candidates’ stances on financial issues will affect your wallet.
By the editors of Kiplinger's Personal Finance Published
-
5 HEROES Act Provisions with a Good Chance of Becoming Law
Politics The massive federal stimulus bill just passed by the House of Representatives is "dead on arrival" in the Senate. But a few proposals in the bill have enough bipartisan support to eventually become law.
By Rocky Mengle Published
-
Vote by Mail: A State-by-State Guide to Absentee Ballot Voting
Politics With health authorities recommending people continue to social distance, the idea of voting by mail is becoming an increasingly hot topic.
By Rivan V. Stinson Published
-
9 Ways COVID-19 Will Change the 2020 Elections
Politics The 2020 election will be like no other in history, as the COVID-19 pandemic will upend the business of politics as usual.
By Sean Lengell Published
-
How to Run for Local Office
Politics If you’ve ever thought that you could do a better job than the elected officials currently in office, here’s how to launch a campaign—and win.
By Kaitlin Pitsker Published