Legislature lets businesses avoid immigration checks

Missouri business dodged a bullet as the 2008 legislative session ended.

Amid the political fervor of anti-immigrant rhetoric, the General Assembly passed two pieces of legislation that prohibit businesses from hiring undocumented workers, but did not require Missouri companies to use a federal system to check whether potential workers are properly documented.

Since early in the session, business organizations had united against any provision that would require companies in the state to use the U.S. Department of Homeland Security’s computerized “e-verify” system to determine whether a worker could be hired.

Business groups such as the Missouri Chamber of Commerce and Industry, Associated Industries of Missouri and National Federation of Independent Business had argued that the e-verify system had too high an error rate to be a good tool for businesses.

Under the bill that passed, only companies with state government contracts are required to use the federal system.

Gary Marble, president of Associated Industries, said the legislation is unlikely to cause problems for Missouri companies because almost all the violations involve businesses that knowingly hire workers who are in this country illegally. Even without e-verify, prosecutors would have difficulty proving businesses hired illegal immigrants, he said.

Dan Mehan, who heads the Missouri Chamber, said in a prepared statement that Missouri businesses should not be expected to act as anti-immigration extensions of federal agencies involved with customs. “We do not need to poison that environment by scaring business from the state with legislation that burdens Missouri businesses with immigration enforcement,” Mehan said.

The statement was notably and unusually cool toward the Republican legislature, which generally has had close ties to the business community. Early on, House Speaker Rod Jetton co-sponsored legislation that would have required businesses to check prospective workers through e-verify. But Jetton, who is considered pro-business, soured on the idea after business lobbyists put him under pressure.

The legislation instead allows companies to use e-verify as an affirmative defense if they later are found to have hired an illegal immigrant.
For the first offense of hiring an illegal immigrant, companies would lose their local and state licenses and permits for 14 days. On the second offense, the penalty rises to one year. They permanently lose their licenses and permits on the third conviction.

The legislature passed the bill and avoided a late threat by Gov. Matt Blunt to call a special session if it failed. The Republican governor had gained considerable national media attention about his proposed crackdown on illegal immigrants before he decided not to run for another term as governor.

Marble, a former GOP lawmaker, said some Missouri businesses could face difficulties because of a successful amendment that imposes penalties if they hire an illegal immigrant as an independent contractor. Businesses that “misclassify” an employee as a contractor would face fines of $50 a day per worker, up to $50,000.

Sen. Tim Green, a north St. Louis County Democrat and union official who has headed the state building trades council, had sought the change to make sure contractors hired legally, withheld and reported taxes and paid fringe benefits – which construction trades contractors often avoid in some areas by hiring undocumented workers.

At one point, Senate sponsor Scott Rupp, a St. Charles County Republican, said he understood Green’s intent, but viewed the amendment as “radioactive” for several House members. However, the language remained in the version passed by the full House and Senate.