New law to revoke biz license for employing illegals

An employer’s business license can be revoked if he’s found knowingly employing an illegal immigrant under a new state law becoming effective Jan. 1.

The yet-to-be-implemented law, passed during the last session of the state Legislature, was one of the General Assembly’s targeted efforts at combating illegal immigration while dealing with the limitations federal law presents on the hot-button topic.

When the bill was initially introduced, the revocation of a business license was not the objective. The goal of the legislation was to fine employers found knowingly employing illegal immigrants $10,000.

A state attorney general’s opinion, however, said that federal law pre-empted the state from imposing criminal sanctions on the suspected employers. Any law passed by the state that did that would be invalid, the opinion stated.

Therefore, legislators settled for the license revocation tact, which is permissible under federal law according to the attorney general’s opinion.

“We couldn’t do anything about that,” said Sen. Bill Ketron (R-Murfreesboro), the bill’s sponsor. “So we went after the civil side.”

The law will empower the state’s Department of Labor and Workforce Development to take away an employer’s business license if the employer is found knowingly employing an illegal immigrant.

As many times is the case with illegal immigration issues, there are some hurdles to be cleared in the new law before the labor department could revoke a business license.

First, a complaint must be filed with the labor department. That complaint, however, must come from a state or local government agency or entity, according to the law.

Then, the Department of Labor’s commissioner must conduct an investigation. If probable cause is found that the suspected employer has hired illegal immigrants, a hearing is held.

Finally, if the Department of Labor finds the employer has employed an illegal immigrant, the commissioner can direct the employer’s business license to be revoked, suspended or denied.

“Our labor standards division is enforcing the new law and the complaints have to come from a local or public entity,” said Milissa Reierson, spokeswoman for the Department of Labor. “And once we get a valid complaint, we will investigate the complaint.”

For the first violation, the license will remain suspended until the employer can show “to the satisfaction” of the labor commissioner that he or she is no longer employing illegal aliens.

Second and third violations cause the employer’s license to be suspended for one year.

The soon-to-be-effective law does provide employers some cover.

If the illegal immigrant has presented proof that he or she is in the country legally — and that documentation turns out to be fake — the employer can’t be punished.

Ketron said he would be inquiring with the Department of Labor early in the legislative session how prepared they were to enforce the law.

“Hopefully employers will understand they can’t afford to lose their business license for a year,” Ketron said. “I couldn’t stand to lose mine for a week.”

The measure’s House sponsor, Rep. John Hood (D-Murfreesboro), couldn’t be reached for comment.