The Indiana Chamber hosted a webinar Thursday featuring Blake Lanning, assistant chief deputy with the Indiana Office of the Attorney General (OAG), to discuss implementation of Senate Enrolled Act 76. The conversation offered employers valuable insight into how the OAG intends to implement the new law, which authorizes the OAG to investigate employers suspected of knowingly or intentionally employing unauthorized workers and pursue civil enforcement when appropriate.
One of the strongest messages throughout the discussion was that the OAG’s enforcement efforts will be focused on intentional violators, not employers making good faith efforts to comply. As Lanning explained, the OAG intends to rely primarily on credible complaints and information received from its federal partners, including the U.S. Department of Homeland Security, when determining whether further investigation is appropriate.
The webinar also highlighted six important safeguards built into SEA 76 that every employer should understand.
- The law applies only to employers who knowingly or intentionally employ unauthorized workers. The statute does not impose liability for inadvertent mistakes or isolated paperwork errors. The OAG emphasized that proving a knowing or intentional violation is a fundamental prerequisite to enforcement.
- Employers who exercise reasonable diligence receive meaningful protection. SEA 76 includes a safe harbor for businesses that proactively verify work authorization using E-Verify, industry best practices and maintain appropriate documentation. The OAG previewed forthcoming guidance that will further explain what reasonable diligence and compliance look like in practice.
- The law applies prospectively. Conduct occurring before July 1 is not subject to investigation under SEA 76. Although the statute contains a three-year lookback period, that period begins on the law’s effective date, meaning investigations cannot reach conduct that predates July 1.
- The statute applies only to W-2 employees. Lanning explained that the definition of “employee” mirrors the definition used under the federal Fair Labor Standards Act, providing employers with a familiar legal framework. As a general matter, employers are not responsible for verifying the work authorization of independent contractors, subcontractors or temporary workers supplied by staffing agencies unless a dual-employment relationship exists.
- Employers are afforded an opportunity to correct violations. For an initial violation, the statute provides a notice-and-cure process that allows employers to address identified deficiencies before more significant consequences become available.
- Finally, SEA 76 establishes a graduated enforcement framework. Rather than requiring automatic license suspension or revocation, the statute gives courts discretion to impose remedies based on the circumstances of each case, including placing an employer on probation. Lanning noted that the licensing provisions were modeled after constitutional principles recognized by the U.S. Supreme Court, which has held that states have greater authority to regulate business licenses than to create separate state immigration enforcement systems.
Lanning also observed that Indiana is breaking new ground. While several states have enacted employment verification laws, relatively few have implemented a comprehensive enforcement framework like SEA 76. According to the OAG, the legislation reflects Attorney General Todd Rokita’s priority of promoting fairness for Hoosier employers and workers by discouraging businesses from gaining a competitive advantage through the unlawful employment of unauthorized workers.
The OAG expects to publish formal employer guidance early next month. Once released, the Indiana Chamber will distribute that guidance to members along with additional implementation resources.
Additional information is available through the Indiana Office of the Attorney General, including the OAG homepage and the online complaint portal.
