May 2011 31

Will business license ruling cause problems for employers?

The decision to adopt an Arizona law requiring business owners to confirm their employees’ legal status nationwide could cause problems for employers, it has been suggested.

John Doran, a shareholder with Greenberg Traurig in Phoenix, told BusinessInsurance.com: “The obligations that are required under Arizona law, including a mandatory use of E-Verify, create significant burdens for employers.”

Indeed, under the law, employers will be required to use the government’s E-Verify system to register an employee and check their legal status. Currently, the system is voluntary in most states.

According to the news source, critics argue that the E-Verify system is prone to error and can give out wrong results.

Another critic of the law, Robert Whitehill, a partner with Fox Rothschild, told the website that the ruling could have a discriminatory effect.

“There’ll be more of an impetus for employers to discriminate, which I think is unfortunate,” he said.

Under the law, state licensing boards can revoke a business license for any firm hiring illegal immigrants.

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