The nation’s largest advocate for independent businesses has joined a lawsuit challenging the constitutionality of Arizona’s employer sanctions law, saying the small businesses that drive the state’s economic engine will be unfairly burdened by the law.
The National Federation of Independent Business on Oct. 5 filed an amicus curiae brief — Latin for “friend of the court” — supporting the legal challenge and adding its concerns about the effect the law will have on its member businesses, saying it is “likely to be particularly detrimental to small businesses.”
By requiring mandatory use of the federal online employee verification system, formerly known as the Basic Pilot Program but renamed E-Verify last month, and subjecting businesses to penalties that range from suspending to revoking business licenses, the NFIB argues the “onerous requirements and penalties” will disproportionately affect small businesses.
“Unlike large firms, small-business owners do not have compliance departments or attorneys on staff to school them in the intricacies of every newly enacted law and regulation…” the brief reads. “Due to these resource constraints, small-business owners also are the least equipped to have the quality controls in place to ensure that they are aware of, and complete every form correctly and comply with every law.”
Michelle Bolton, NFIB’s Arizona lobbyist, says the law’s penalties are especially troubling for the smaller companies that employ 52 percent of the state’s workforce. Under the law, any employer that knowingly hires an illegal immigrant will have its license suspended for up to 10 days. While larger or international companies may be able to absorb such a punishment, Bolton says it will put her group’s membership out of business.
“If you shut down a small business for 10 days, it’s a death knell — they’re not coming back,” she said.
Bolton also said that while 90 percent of businesses in the NFIB support punishing employers that hire illegal immigrants, any such law needs to come from Congress. Further, she said, the law won’t result in an end to illegal immigration.
“This law…doesn’t necessarily do the trick,” she said. “This isn’t going to be the silver bullet that makes that happen.”
In its filing, the NFIB also argues that current federal employment law preempts Arizona from enforcing the sanctions.
David Selden, one of the attorneys for the plaintiffs in the lawsuit, said he was pleased the NFIB joined the suit.
“I think it’s helpful,” he said. “We’re obviously pleased to have other groups add the weight of their arguments.”
The NFIB represents businesses in all 50 states, including more than 10,000 in Arizona. Ninety percent of the member businesses have fewer than 20 employees. The typical NFIB business employs five workers and reports gross sales of around $350,000 per year and annual net profits of $40,000 to $50,000, according to the group’s Web site.