NEWSROOM

The U.S. Court of Appeals for the Tenth Circuit Feb. 2 upheld Oklahoma’s ability to require contractors and subcontractors to verify employees through E-Verify, the federal employment verification system, before being allowed to work on state projects.  

The original lawsuit was filed in 2008 by the Chamber of Commerce with the support of the ABC Oklahoma Chapter and other businesses groups. The appellate court overturned an injunction granted by the U.S. District Court for the Western District of Oklahoma that agreed with plaintiffs that the E-Verify provision in the Oklahoma Taxpayer and Citizen Protection Act of 2007 was preempted by federal law. According to the appellate court, the provision was not preempted because it did not contain civil or criminal sanctions prohibited by federal law and it did not conflict with existing policies or laws on immigration.  

In addition to challenging the E-Verify requirement, the original lawsuit challenged a section of the act that allowed workers who were U.S. citizens to sue their employer for discrimination if they are fired or laid off while undocumented workers remained employed, and a section that required contractors to withhold state income tax at the highest income tax rate for independent contractors who do not provide employment eligibility paperwork.  The appeals court upheld the injunctions on these provisions noting that they both conflict with congressional policies and/or laws on immigration.  

On a federal level, E-Verify is getting a boost from the Department of Homeland Security’s $56.3 billion fiscal year 2011 budget request. The E-Verify program is scheduled to receive $103.4 million for increased monitoring and compliance efforts.