Tony Cook

IndyStar

Employers who repeatedly hire undocumented immigrants could lose their right to do business in Indiana

Proposal would make Indiana’s penalties among the toughest in the nation.

Business groups oppose measure, say it goes too far

Employers who repeatedly hire undocumented immigrants could lose their right to do business in Indiana under legislation introduced Thursday in the General Assembly.

The proposal would make Indiana’s penalties among the toughest in the nation.

Senate Bill 285 would allow a judge to strip employers of their business license if they “knowingly” hire undocumented immigrants three times.

State Sen. Mike Delph, R-Carmel, says he introduced the measure to “take away the jobs magnet and remove the financial incentive of unscrupulous business people who profit off of illegal immigration.”

Two other Republican lawmakers have already signed onto the bill, including Senate Pensions and Labor Committee Chairman Phil Boots, R-Crawfordsville. His support is key because the measure must make it through his committee before it can move to the full Senate for a vote.

But the proposal is facing opposition from the business community, including the powerful Indiana Chamber of Commerce, which has helped beat back similar efforts in past years.

“We vehemently oppose it,” said Chamber President Kevin Brinegar. “We think the punishment is too stringent for the crime.”

Indiana is home to about 93,000 undocumented immigrants, according to the Migration Policy Institute. About 53,000 are estimated to be in the state’s workforce.

Delph’s bill would authorize the Indiana attorney general’s office to investigate complaints that employers are using undocumented workers. The AG’s office estimates the workload would require the hiring of three additional employees at a cost of about $250,000 a year.

A spokesman for Attorney General Greg Zoeller said the office doesn't typically take a public position on pending legislation.

Only seven other states revoke the business licenses of employers that hire undocumented workers, according to NumbersUSA, a national advocacy group that promotes reduced immigration.

Chris Chmielenski, a spokesman for the group, said the federal government’s inaction on illegal immigration has driven states to take action. A similar law in Arizona was upheld by the U.S. Supreme Court.

Frustration over illegal immigration and concerns about terrorism have spilled into the U.S. presidential race, where leading Republican contender Donald Trump has promised to build a wall along the border with Mexico and has proposed banning foreign Muslims from entering the United States.

Concerns about illegal immigration are understandable, said Mark Fisher of the Indianapolis Chamber of Commerce. But he said Delph’s proposal is misguided.

“We encourage and expect every business to abide by all applicable laws,” he said. “However, we find this measure overly punitive and (it) risks jeopardizing the jobs of law abiding Hoosiers working to support themselves and their families.”

Employers that knowingly hire undocumented immigrants in Indiana can already be denied tax breaks — a penalty few other states have. Companies that hire those in the country illegally can also face fines under federal law.

But Delph said those penalties don't go far enough. Businesses that exploit undocumented immigrants to save money on labor costs can build those penalties into their budgets and still come out ahead financially, he said. Not so if they have to stop doing business altogether, he said.

“It’s a much more severe consequence, and it’s the right consequence,” he said. "We need to root out this shadow world that exists where people think they’re coming into American freedom but really live in modern day American slavery.”

Similar immigration proposals from Delph have received serious consideration from state lawmakers in the past, In 2008, a measure passed in both the House and the Senate, but in different forms that the two chambers were unable to reconcile. In 2011, a more sweeping measure passed, but not before the business license revocation penalty was removed and replaced with a denial of tax benefits.

Early versions of those past measures stirred fears among Hispanic Hoosiers that complaints against businesses would be based on racial profiling.

Delph says that’s why his proposal would make it a misdemeanor crime to file a false or frivolous complaint.

“We’re certainly not trying to target any specific group,” he said. “We’re trying to go after those that financially benefit from intentionally breaking the law.”

Call IndyStar reporter Tony Cook at (317) 444-6081. Follow him on Twitter: @indystartony.

About SB 285

What it does: Prohibits employers from knowingly hiring undocumented workers.

Penalties: Violators would initially be required to terminate all undocumented workers and file reports on new hires with the Indiana attorney general for three years. That would increase to 10 years for second-time violators. Employers who violate the law three times could lose their business license.

How it would work: The Indiana attorney general would be responsible for investigating complaints against businesses. County prosecutors would use the AG’s findings to file a civil complaint against the employer.

Immunity: Businesses that verify employment authorization through the federal E-Verify program would be immune.

Protections for businesses: Those who file false or frivolous complaints against an employer could be charged with a Class B misdemeanor.

Effective date: Sept. 30