On September 17 the U.S. Court of Appeals for the Ninth Circuit has upheld the validity of the Legal Arizona Workers Act (LAWA). Chicanos Por La Causa, Inc., et al. v. Arizona Employers for Immigration Reform, Inc.

LAWA requires employers to use the federal employment eligibility verification system, known as E-Verify, and imposes severe sanctions on employers that hire unauthorized workers. LAWA became effective on January 1, 2008.

The Ninth Circuit held LAWA was not expressly preempted by the federal Immigration Reform and Control Act of 1986 ("IRCA"). The Court found that LAWA fell within the savings clause of IRCA's preemption provision (8 U.S.C. § 1324a(h)(2)), which expressly exempts state or local "licensing and similar laws" from preemption.

Arizona employers should continue to ensure their compliance with the Act's requirements, including the additional provisions added through the May 2008 amendments to the Act. In addition to continued participation in E-Verify, it is important for employers to review their Form I-9 compliance programs to make certain their Form I-9s are consistently being completed properly.