As part of the 2026 legislative session, Senate Enrolled Act 76 introduced a new enforcement framework tied to the employment of unauthorized individuals. While much of the discussion during session focused on enforcement authority, an equally important – if not more practical – component for Indiana employers is the law’s “safe harbor” provision.
In short, SEA 76 provides that employers may avoid enforcement action if they can demonstrate compliance with “industry best practices” in the recruiting, hiring and employment of workers. For employers, the key question is straightforward: what does that actually mean in practice?
Encouragingly, the Indiana Office of the Attorney General (OAG) has begun to provide clarity. The OAG has indicated publicly that adherence to federal guidance – specifically, participation in U.S. Immigration and Customs Enforcement’s Mutual Agreement between Government and Employers (IMAGE) program will satisfy the state’s “best practices” expectation. IMAGE is a voluntary partnership initiative designed to help businesses comply with employment eligibility verification laws. Importantly, it allows employers to rely on an established federal framework rather than navigating a new or conflicting state-specific standard.
So, what should employers be doing now?
First, ensure consistent and accurate use of the federal Form I-9 process. This includes timely completion, proper documentation review and secure record retention. Internal audits, whether conducted periodically or in response to identified issues, can help identify and correct technical errors before they become larger compliance concerns.
Second, consider participation in E-Verify. While not universally required, E-Verify remains one of the most recognized tools for confirming work authorization and is frequently cited as a best practice under federal guidance.
Third, formalize internal policies and training. Employers should ensure that HR personnel and hiring managers are trained on proper verification procedures, anti-discrimination requirements and how to respond to potential discrepancies. Written policies not only promote consistency but also serve as evidence of a good-faith compliance effort.
Finally, document your processes. In the event of an inquiry, the ability to demonstrate a structured, consistently applied compliance program will be critical in establishing eligibility for safe harbor protections.
SEA 76 ultimately reflects a broader policy goal: Encouraging lawful workforce participation while providing employers with clear, achievable standards. By aligning with federal best practices and taking proactive steps now, Indiana employers can position themselves to both comply with the law and minimize regulatory risk.
