Hourly Update

State House passes bill sanctioning employers who hire illegal workers

PHOENIX - Companies that knowingly hire undocumented workers would face felonies, stiff fines, and possibly be put out of business under legislation approved Thursday by the House of Representatives. HB 2779 would require every employer to file an affidavit with the state swearing that he, she or it does not knowingly employ people not in this country legally. It also provides money to state and local prosecutors to investigate complaints against companies and determine if they have, in fact, hired undocumented workers. The punishable crime would be for filing a false affidavit. Lawmakers feel that gets around the fact that federal law specifically bars states from punishing employers for breaking laws that make it illegal to hire undocumented workers. Thursday's 46-13 vote came after supporters beat back a Democratic alternative which would instead have required every employer in the state to use an online federal database program to check whether job applicants are legally entitled to work in the country. House Minority Leader Phil Lopes, D-Tucson, said that is a preferable -- and more enforceable -- alternative. But the penalties against wayward employers in the Democrats' plan were far less than the Republican-crafted proposal. Under the Democrats' plan, a first offense for failing to check applicants would mean a $5,000 penalty, with $10,000 for a second violation and $15,000 for a third. And the Industrial Commission, which would be charged with enforcing the plan, could -- but would not be required to -- suspend a business license after a third offense. By contrast, in the legislation that passed a first conviction of filing a false affidavit would mean a fine of at least $2,500 but up to $50,000. A judge could suspend a license at that point. Three convictions within five years would mean the automatic loss of any state-issued license to do business. Lopes said he feared the GOP measure would unnecessarily bankrupt small and medium-sized businesses. Rep. Russell Pearce, R-Mesa, the main architect of the plan, said the legislation actually will help many businesses. He said employers have complained to him they cannot compete with other firms that hire undocumented workers at lower wages. "What is our obligatio to them?" he asked. In the end, some Democrats voted for the proposal, which now goes to the Senate. Rep. Ben Miranda, D-Phoenix, said he was tired of prior measures that mainly attacked people drawn to this country by the lure of employment. "It's about time the business community started getting beat up a little bit," he said, if for no other reason than to force all sides to work toward a measure acceptable to everyone. The legislation would require the state and any firm that provides contractual services to the state to screen new employees through that federal database program, known formally as the Basic Pilot Program. Gov. Janet Napolitano already has ordered checks of state workers, though the Department of Administration, which does most of the hiring, uses a different system. Local governments eventually would be subjected to the same requirement. But House Speaker Jim Weiers said he sees no reason to force businesses to use the system. He noted the legislation creates a legal defense for employers who use the Basic Pilot Program: They are presumed to be hiring only legal workers unless prosecutors can prove otherwise. That, said Weiers, will provide an incentive for companies to use the system without being forced. Federal officials who gave lawmakers a demonstration of the Basic Pilot Program earlier Thursday said 352 Arizona companies operating at more than 1,200 locations already use the system. That includes 680 sites in Phoenix, 258 in Tucson, 119 in Scottsdale and 34 in Tempe.