Arizona INSIDE

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IMMIGRATION LAW Cont. from p.1
applies only for employees hired on
or after January 1, 2008. LAWA will
no longer apply to individuals who
started employment at a company
prior to January 1, 2008.
Possible Liability for
Independent Contractors’
Hiring Practices
Employers may now be liable for
intentionally using independent contractors
who employ unauthoized
workers.
Changes to Investigation
Procedures
A new official written complaint
form was developed. Complaints
submitted on these forms
must be investigated by the applicable
county attorney or attorney
general. The law also provides that
anonymous complaints are “not prohibited,”
but does not require mandatory
investigation for anonymous
complaints.
Sheriffs’ Offices
Authorized to Investigate
In the original law, only the
county attorneys and attorney general
could investigate complaints under
LAWA. The new amendments add
that the sheriffs and other local law
enforcement agencies may participate
in investigations under LAWA.
Limitation on Exclusively
Race-based Complaints
Complaints based “solely” on
race or national origin shall not be
investigated, but complaints based
partially or primarily on race and national
origin can be investigated.
Sanctions May Be Limited
to the Specific Location
Where a Violation Occurred
If a business has a license
specific to the location where an undocumented
employee worked, only
that license would be suspended or
revoked. If a business has only general
licenses, however, all of its licenses
are still at risk.
Good Faith Defense
for Occasional
Technical Violations
Employers who make a good
faith attempt to comply with LAWA
should not be found to have committed
a violation for “isolated, sporadic
or accidental, technical or procedural
failure[s].
New Voluntary
Opt-in Defense Created
Regarding Existing Employees
Employers are given a new
defense to sanctions under LAWA if
they enroll in a voluntary employerenhanced
compliance program that
includes Social Security Number
Verification Service, with certain
mandated follow-up steps, for existing
employees. Employers who enroll
in this voluntary program must
submit an affidavit to the Attorney
General stating that the employer
will verify new hires in E-Verify and
will verify its SSNs of employees
at the company who have not been
Employers face new penalties
if they pay workers in cash and
fail to withhold taxes.
processed through E-verify Number
Verification Service (SSNVS) system.
The SSNVS by federal law can
only be used for certain purposes, and
adverse employment action is not
supposed to occur if a person’s name
does not match his or her SSN.
Mandatory E-Verify as a
Condition of Government
Contracts and Grants
Those companies who enter
into contracts with state or local
governments or receive financial assistance
must enroll in the E-Verify
Program and use it for new hires.
Clarification of
Second Violations
A violation cannot be considered
a second violation unless it
occurred while a company was on
probation for a first violation. Penalties
for employers who pay in cash.
Employers face new penalties if they
pay workers in cash and fail to withhold
taxes, report new hires for child
support garnishment, pay unemployment
insurance or workers compensation
premiums.
Article Written by attorneys Julie A.
Pace and David A. Selden of Ballard
Spahr’s Labor, Employment & Immigration
Group.
Contact Julie at 602-798-5475 or
email at pacej@ballardspahr.com
Ballard Spahr Andres & Ingersoll,
LLP
SCF Board Approves
$25 Million Dividend Payout
16455 S. Santa Rita Rd., # 5
Sahuarita, AZ 85629
Phone: (520) 625-9289
Fax: (520) 625-1541
A-General Engineering - ROC121749
B-04 General Engineering - ROC121748
Commercial Site Grading
Grading-Trenching
Septic Systems
Demolition
Underground Utilities
Bedding/Shading Material Supplier
Rip-Rap, Boulders & Deco Rock Supplier
Roads, Driveways & Parking Areas
SPRING 2008
SCF Arizona’s Board of Directors unanimously approved a $25 million
dividend for 2007 to qualified policyholders. “We are pleased to be
returning $25 million to Arizona’s economy, particularly in times like
these,” said SCF Board Chair Jim Weeks. “We’ve all seen the headlines
and know that the economy has slowed and that many people are living
with more financial stress, which creates challenges for Arizona
businesses. We’re glad to provide a boost.
“At the same time, our medical costs for treating injured workers
increased 16 percent last year,” Weeks added. “Even with higher costs,
we are happy to be able to return this money to qualified policyholders,
and the fact we can demonstrates SCF’s ability to adapt and perform
well during difficult times.”
SCF President and CEO Don Smith noted the dividend payout marks 37
straight years the state’s largest workers’ compensation provider has
been able to return money to policyholders. Dividend amounts paid to
qualified policyholders are based on annual premium and incurred
losses (claims).
“Dividends are not guaranteed,” Smith explained. “They are dependent
on the company’s financial performance for the year and conditions in
the marketplace. And when there is a tough economy, tough decisions
have to be made. It’s a credit to our entire organization and the Board
that we are able to take this step and reward deserving policyholders.
“We congratulate all of our policyholders that will earn a dividend,”
Smith said. “They have done so by keeping their workplaces safe and
through good management practices.” While Arizona continues to be a
safer place for workers with a reduction in the number of workplace
injuries, the cost of treating those injuries continues to rise.
“The Board’s decision is responsible and prudent in light of the
economic slowdown and allows SCF to keep its long record of returning
money into the state’s economy intact,” Smith said.