The Wall Street Journal
Arizona Squeeze On Immigration Angers Business
By MIRIAM JORDAN
December 14, 2007; Page A1
PHOENIX -- Arizona businesses are firing Hispanic immigrants, moving operations to Mexico and freezing expansion plans ahead of a new law that cracks down on employers who hire undocumented workers. The law, set to take effect on Jan. 1, thrusts Arizona into the heart of the national debate on illegal immigration, which has become a hot topic on the presidential campaign trail. Republican candidates, in particular, have been battling to show how tough they are on the issue.
Arizona's law, believed to be the strictest in the nation, is shaping up as a test of how employers will react when faced with real sanctions for hiring undocumented labor. It is being closely watched by businesses across the country. While proponents say the crackdown will save the state money on services for illegal immigrants, some businesspeople fear Arizona's economic growth may be at risk.
Under the law, people will be encouraged to contact a county sheriff's or county attorney's office to report businesses they suspect of employing an illegal immigrant. After the sheriff investigates, the county attorney can then seek to suspend and ultimately revoke the business license of an employer who knowingly hires an illegal immigrant. The measure would also require all Arizona businesses to use E-Verify, a federal online database, to confirm that new hires have valid Social Security numbers and are eligible for employment. The law still faces a court challenge from the Arizona Chamber of Commerce and other business groups. Yesterday, a federal judge set a hearing for next Tuesday on a temporary restraining order that would freeze the law's implementation. Earlier, the judge tossed out a separate lawsuit challenging the law, saying the plaintiffs had sued the wrong parties.
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A University of Arizona study released earlier this year concluded that economic output would drop 8.2% annually if noncitizen foreign-born workers were removed from the labor force. Researchers estimate about two-thirds of the workers in that category are in the state illegally.
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In one sense, the bill is having its desired impact: Employers are rushing to ensure they don't have undocumented workers. Mr. Levecke says he has hired outside auditors three times to ensure his 1,200 employees are clear, and he let several of them go after the checks. Earlier this week, 300 human-resources managers packed a ballroom at a Scottsdale resort to learn how to cope with the law and possible raids on their premises. Arizona has become a laboratory for bills and policies to crack down on illegal immigration. In 2004, it passed a proposal to prevent illegal immigrants from using state services, such as adult education and nonemergency health care. Earlier this month, a ballot initiative was introduced to deny U.S. citizenship to the children of illegal immigrants born in Arizona, which critics say is a violation of the U.S. Constitution.
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http://online.wsj.com/article/SB119760108815428771.html (subscription)
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