BILL ANALYSIS Ó SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS Senator Tony Mendoza, Chair 2015 - 2016 Regular Bill No: AB 2532 Hearing Date: June 8, 2016 ----------------------------------------------------------------- |Author: |Chiu | |-----------+-----------------------------------------------------| |Version: |February 19, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Brandon Seto | | | | ----------------------------------------------------------------- Subject: Employment services: verification KEY ISSUE Should the Legislature repeal the requirement to verify an individual's legal status or authorization to work prior to them receiving employment services from state or local government agencies or any private contracting agencies? ANALYSIS Existing law Requires each state or local government agency or community action agency, or any private organization contracting with them, that provides employment services such as job training, retraining, or placement, to verify an individual's legal status or authorization to work prior to providing those services to that individual (Unemployment Insurance Code §9601.5). Specifies that proof of legal status or authorization to work includes a social security card, immigration visa, birth certificate or passport, among others (Unemployment AB 2532 (Chiu) Page 2 of ? Insurance Code §9601.5). Requires the agencies or organizations described above that provide specified employment services to post a notice in the workplace stating that only citizens or those persons legally authorized to work in the United States will be permitted to use the agency's or organization's employment services that are funded by the federal or state government (Unemployment Insurance Code §9601.7). This Bill Repeals the requirement to verify an individual's legal status or authorization to work prior to them receiving employment services from state or local government agencies or any private contracting agencies. Repeals the associated workplace posting requirement that informs workers that only citizens or those legally authorized to work in the U.S. can use employment services being provided by these agencies. COMMENTS 1. Brief Background on the Immigration Reform and Control Act of 1986 (IRCA) IRCA was enacted into U.S. law as an attempt to control and deter unlawful immigration to the United States. Its major provisions called for the legalization of undocumented persons who had been continuously present in the U.S. since 1982, the legalization of certain agricultural workers, sanctions for employers who knowingly hire undocumented workers, and increased enforcement at U.S. borders. IRCA required employers to attest to their employees' immigration status, through the establishment of the I-9 Form, and made it illegal to hire or recruit undocumented workers knowingly, among other things. IRCA also states that in terms of employment in the United States, it is unlawful for a person or other entity knowingly to recruit or refer for a fee an unauthorized person, or to ignore the verification requirements for providing these services. AB 2532 (Chiu) Page 3 of ? 2. Need for this bill? SB 733 (Russell, 1993) added §9601.5 and 9601.7 to the Unemployment Insurance (UI) Code (see "Existing law" section above). The author argues that the law was always of questionable constitutionality because federal law already regulates those employment agents who "recruit or refer for a fee" or in other words, provide employment services, under the Immigration Reform and Control Act. This law expressly preempts "any State or local law imposing civil or criminal sanctions (other than through licensing and similar laws) upon those who employ, or recruit or refer for a fee for employment, unauthorized aliens." 8 U.S.C. § 1324a (h)(2). In short, the author argues that the sections of the UI Code in question are not necessary and burdensome because they already fall under the purview of federal law. In this case, the IRCA prohibits state preemptions or interference with federal law on this issue. The author states that AB 2532 repeals these sections and eliminates a problematic and discriminatory redundancy with federal law. 3. Proponent Arguments : Proponents state that this bill would remove two provisions of California law sponsored by the nativist organization Federation for American Immigration Reform (FAIR). California UI Code §9601.5 and 9601.7 were enacted two decades ago in an era of heightened anti- immigrant lawmaking in the state. Proponents assert that these two UI Code sections are preempted by federal law and that their continued enforcement would subject California to potential legal action. Proponents add that the United States Supreme Court recently held that federal law, since the 1986 enactment of IRCA, provides a "comprehensive framework" to address the employment of unauthorized immigrants and does not permit state legislation within the area addressed by the framework. Because UI Code §9601.5 and 9601.7 could result in civil sanctions for a violation, the two provisions are expressly preempted under IRCA so far as they apply to employment services agencies that charge to recruit or refer. Moreover, to the extent the provisions apply to agencies that provide services for free, they are impliedly preempted because AB 2532 (Chiu) Page 4 of ? Congress, in enacting IRCA, decided not to regulate such free services as part of its comprehensive framework. Also proponents believe that the notice-posting obligation in UI Code §9601.7 exacerbates these legal concerns and imposes unnecessary added costs on businesses. Finally, proponents contend that AB 2532 would do nothing to change immigrant eligibility for any government services, which is regulated by other provisions of federal and state law. Nor would the bill change the federal obligation that employers face with respect to employment of authorized workers and the duty to check the work authorization of new hires. 4. Opponent Arguments : None received. 5. Prior Legislation : SB 733 (Russell) Chapter 819, Statutes of 1993 - Added the requirement for state or local government or community action agencies, or any private organization contracting with them to verify an individual's legal status or authorization to work in the United States before providing them with employment services. Also requires these agencies and organizations to post a notice in the workplace stating that only citizens or those persons legally authorized to work in the U.S. will be permitted to use the employment services that these entities provide. SUPPORT Mexican American Legal Defense Education Fund (Sponsor) American Civil Liberties Union of California California Immigrant Policy Center Worksafe OPPOSITION None on file. -- END -- AB 2532 (Chiu) Page 5 of ?