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Federal Regulation of Alien Employment and

Preemption over State Laws



November 4, 2020
The Immigration Reform and Control Act of 1986 (IRCA) established rules governing the employment of
non-U.S. nationals (aliens) in the United States. IRCA made it unlawful for employers to knowingly hire
unauthorized aliens who lack federal permission to work in this country. The statute also created an
employment verification system to determine an employee's work eligibility. IRCA's comprehensive
scheme for regulating alien employment displaced a considerable amount of state regulation. But
questions remain about the degree of that displacement. In the last decade, the Supreme Court considered
several challenges to state laws regulating the employment of aliens. These challenges centered on
whether IRCA preempted those state laws, rendering them unenforceable. The Court has held that certain
state laws regulating alien employment are preempted because they intrude upon the federal
government's regulatory domain, such as those imposing criminal penalties upon unauthorized aliens who
seek employment. But the Court has upheld other state laws or actions relating to the employment of
aliens that do not necessarily interfere with the federal immigration enforcement scheme, including
measures requiring employers within the state to participate in the federal electronic employer verification
system or sanctioning persons who obtain employment through use of fraudulent documents. This Legal
Sidebar provides an overview of IRCA, the doctrine of federal preemption, and the Supreme Court's
jurisprudence about the preemptive reach of IRCA over state employment laws.

The   Immigration Reform and Control Act of 1986

Before IRCA, federal law did not directly address the employment of aliens who were unlawfully present
in the United States, and, to the extent the employment of unlawfully present aliens was regulated, it was
done at the state level. For example, a pre-IRCA California statute prohibited the employment of aliens
who were not entitled to lawful residence in the United States if such employment would have an
adverse effect on lawful resident workers. The enactment of IRCA in 1986 stemm'ed from federal
lawmakers' concerns about the flow of unauthorized immigration into the United States. Congress sought
to create a comprehensive framework for combatting the employment of illegal aliens, which Congress
believed would reduce incentives for aliens to unlawfully enter the country to seek employment.
IRCA  made it unlawful for an employer to knowingly hire an unauthorized alien, defined as an alien
who was not a lawful permanent resident (LPR) or otherwise authorized by immigration officials to be

                                                                Congressional Research Service
                                                                https://crsreports.congress. gov
                                                                                    LSB10550

CRS Legai Sidebar
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Commi :tees of Congress -------------------------------- ------ --------------------------------------------------------

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