For Immediate Release:
September 22, 2008

Contact:
Dale Crowell (202) 715-0485
dcrowell@ushcc.com
Erica Baca (202) 715-0483
ebaca@ushcc.com

Washington, DC - The U.S. Hispanic Chamber of Commerce (USHCC) expressed disappointment
today following the United States Court of Appeals for the Ninth Circuit decision regarding the challenge to the Legal Arizona Workers Act which targets both immigrants and employers. The case which sparked the challenge, Arizona Contractors Association, Inc et al vs. Criss Candelaria, is more commonly known as the Candelaria Case.

The legal challenge to this Act came after Arizona passed the Legal Arizona Workers Act in 2007.  The Act severely sanctions Arizona employers who knowingly or intentionally hire workers who are unauthorized to work under federal law. These sanctions range from suspension of an employer’s business license to revocation of that license, an effective “death penalty” for a business found in violation of the Act, and require several burdensome compliance actions. The Act also mandates that all Arizona employers enroll in and use the flawed pilot phase Federal E-Verify electronic employment verification system.

“Hispanic businesses and workers in Arizona are already being hurt by this misguided law,” said David C. Lizárraga, USHCC Chairman. “The Ninth Circuit Court’s ruling will force small businesses, chain stores, hospitals and utilities, among others to shut their doors if they don’t comply and use a flawed verification system. The USHCC continues to have significant reservations about the reliability and veracity of this system. Individuals with name mismatches, which could disproportionately impact Hispanics, will have to navigate a labyrinth of Kafkaesque bureaucracy to clear up their identities. Ultimately, businesses will begin looking for the state’s exit doors, and many are already doing so.”

The Ninth Circuit’s recent ruling stated that once the law is enforced the parties can bring back their issues to the court. But this may be too late for many business owners in Arizona. While official mechanisms would be set up to allow for appeals of alleged violations, it would still create extra burdens of proof that could hinder the daily operations of many small businesses, chain businesses, and other operations such as electric companies and hospitals. The resources of businesses will be consumed by overly burdensome mandatory compliance requirements.