Lawmakers in Idaho contemplate mandating employers to verify workers’ immigration status

Republican Congressman Mike Simpson has a vision for Idaho to become the second-largest dairy-producing state in the country, surpassing Wisconsin.

According to him, achieving such growth is impossible without the contribution of thousands of undocumented workers. These workers are currently at risk of deportation under President Donald Trump’s administration, and Idaho lawmakers are also making efforts to prevent their employment.

In Congress, he has put forward legislation three times since 2019, aiming to establish a pathway to citizenship for these workers. However, his bills were unsuccessful on each occasion due to opposition from critics within his own party. These critics argued that the proposed legislation amounted to granting amnesty to unauthorized immigrants who were perceived as taking jobs away from American workers.

According to Idaho Congressman Simpson, Americans are not likely to take on these jobs. He emphasizes that if the dairy workers in Idaho and across the country were to disappear, the price of milk products would significantly increase.

Simpson finds himself positioned on one side of the border politics debate as a new administration takes charge. The proposals aiming to deport numerous undocumented individuals clash with the economic realities in Idaho, where migrant labor plays a vital role in the local economy. The statehouse in Boise is set to review a proposal that underscores this tension by proposing a mandate for employers to utilize a federal verification system that verifies the immigration status of workers and revokes the business licenses of those who employ undocumented workers.

The E-Verify system, which has garnered support from advocates of stricter border control, has faced criticism for its lackluster performance in states where it has been implemented. Despite its intended purpose of detecting unauthorized workers and reducing the undocumented population, data suggests that it has been ineffective in achieving these goals. The program has been met with resistance from dairy farmers and agricultural organizations, who argue that it places an unjust burden on employers and poses a threat to one of the state’s vital industries.

Rick Naerebout, the executive director of the Idaho Dairymen’s Association, expressed his perspective on the matter during a news conference held at the Idaho Capitol in 2024. According to Naerebout, the approach of shifting responsibility onto employers places an undue burden on them, when it should be a matter addressed at the border.

Naerebout has collaborated with Simpson in their joint endeavor to establish a viable route towards legalizing the status of agricultural workers. However, this year, Naerebout’s focus will primarily be on defensive strategies within the Idaho Legislature. Numerous lawmakers are currently engaged in drafting bills with the objective of restricting illegal immigration.

According to studies, it has been found that approximately 50% of the dairy workforce in the United States consists of undocumented individuals. The implementation of a mandatory E-Verify law in Idaho could potentially lead to the loss of jobs for both these workers and the dairy farmers.

Idaho lawmakers view mandatory E-Verify as a practical solution to tackle the “border crisis” at a state level.

“I believe it is essential for individuals working in Idaho to be here legally,” stated Rep. Jordan Redman, R-Coeur d’Alene. Redman, who introduced the E-Verify bill last year, shared with InvestigateWest that he is currently working on a second attempt for the ongoing session.

Data indicates that states with mandatory E-Verify have observed minimal shifts in the number of undocumented workers. Surprisingly, even after 16 years since its implementation, Arizona continues to face challenges with achieving full employer compliance.

According to Alex Nowrasteh, vice president of economic and social policy studies for the Cato Institute, a libertarian think tank, the impact on the illegal immigrant population is minimal. He argues that implementing E-Verify only adds to the challenges that businesses already face. In his opinion, there is no valid reason to enforce it. Interestingly, he suggests that one of the main reasons some politicians support E-Verify is that it does not effectively address illegal immigration, allowing them to appear tough on the issue without imposing significant economic costs.

The concept of a ‘business death penalty’

The notion of a ‘business death penalty’ has gained traction in recent discussions. The idea revolves around the concept of imposing severe consequences on companies found guilty of engaging in unethical or illegal practices. This proposed measure seeks to hold corporations accountable for their actions and deter future wrongdoing.

Proponents argue that the current system of fines and penalties often fails to effectively deter corporate misconduct. They believe that imposing a ‘business death penalty’ would send a stronger message and serve as a more significant deterrent. This approach aims to ensure that companies prioritize ethical behavior and comply with regulations, as the potential consequences would be severe.

Critics, however, express concerns about the potential unintended consequences of such a measure. They argue that the complete dissolution of a company could have adverse effects on employees, stakeholders, and the economy as a whole. Additionally, determining the threshold for a ‘business death penalty’ and establishing a fair and consistent process for implementing it could pose significant challenges.

While the idea of a ‘business death penalty’ sparks debate, it is clear that the need for corporate accountability and ethical conduct is paramount. Finding the appropriate balance between punishment and rehabilitation is crucial in ensuring a fair and just system that promotes responsible business practices.

‘Business death penalty’

E-Verify, which was established by Congress in 1996, enables businesses to verify the work eligibility of their employees in the United States. In 2008, Arizona became the first state to implement mandatory E-Verify for all employers. Those who failed to comply faced the risk of losing their business license. This measure was referred to as “the business death penalty” by business owners and civil rights groups.

In recent years, several states have implemented laws that require the use of E-Verify, with Florida and South Carolina being the latest additions in 2021.

According to data from U.S. Citizenship and Immigration Services acquired by the Cato Institute, in 2008, only 0.8% of employees in Arizona who underwent E-Verify were found to be unauthorized to work. However, over the years, the number of employees flagged through E-Verify has significantly decreased, with only 0.1% being deemed unauthorized to work in 2016.

According to Nowrasteh, the presence of undocumented workers in Arizona’s workforce is significantly higher than previously estimated, surpassing the mere 1% mark. It appears that E-Verify, the system designed to identify unauthorized workers, is not effectively flagging individuals. In fact, a 2009 government audit revealed an alarming inaccuracy rate of 54% when attempting to identify these workers.

Furthermore, despite being a requirement, a significant number of employers are still not utilizing E-Verify. In fact, statistics from 2016 indicate that only 71% of employers in Arizona were actively using E-Verify.

According to Nowrasteh, the reason for this is the lack of effective mechanisms to enforce the law.

According to the Wall Street Journal, only two businesses in Arizona have had their licenses revoked for failing to use E-Verify since 2008.

Proposed legislation aimed to impose stricter penalties on business owners who neglect to use E-Verify, unfortunately, did not garner enough support to pass. The bill intended to classify violations as felonies, and would have resulted in hefty fines of $10,000 for every unauthorized worker employed by a business.

According to Nowrasteh, it is doubtful that it would have made a difference.

According to Nowrasteh, it will be quite challenging to monitor the usage of E-Verify. Conducting audits of business records will be necessary to determine how businesses are utilizing E-Verify.

According to the Arizona Mirror, last year, Arizona Representative Ben Toma, who introduced the bill for stricter penalties on businesses not utilizing E-Verify, emphasized to a group of fellow lawmakers that the law promotes fairness for businesses that do use E-Verify. Supporters within the Arizona statehouse also highlighted that the law acts as a deterrent for illegal immigration and conveys the message that Arizona is not a sanctuary state.

Arizona has experienced a slight decrease in the number of undocumented immigrants after implementing the E-Verify requirement.

According to the Pew Research Center, Arizona had an estimated 350,000 undocumented immigrants in 2008. The number dropped by 7% in 2009 and has either remained stagnant or slowly declined in the years since.

According to Pew, states like Mississippi, North Carolina, Alabama, and Georgia, which have implemented mandatory E-Verify laws, have not experienced a significant decline in their undocumented population, similar to what Arizona has seen. Mississippi mandated E-Verify in 2011, yet there has been little to no change in its undocumented population. Similarly, North Carolina implemented E-Verify in 2013, but there has been minimal impact on the undocumented population. The trend continues with Alabama and Georgia. As for Florida, which recently passed a mandatory E-Verify law in 2021, there is currently no available data from Pew regarding the current numbers of undocumented individuals in the state.

Some lawmakers believe that the legislation may serve as a sufficient deterrent for immigrants who are looking for employment opportunities in Idaho.

During a news conference at the Capitol earlier this month, InvestigateWest was informed by Rep. Mike Moyle, R-Star, and the speaker of the Idaho House, that the implementation of E-Verify and other immigration-related legislation is aimed at conveying a strong message to undocumented immigrants.

“I believe that there are certain aspects we can modify in order to effectively convey the message,” he expressed. “If you execute it correctly, we are completely fine with that, but if you make any mistakes, there will be repercussions.”

Idaho’s dairy industry faces the risk of losing dairies.

Idaho could lose dairies

Idaho is a leading state in dairy production, ranking third in the nation, just behind Wisconsin and California. The dairy industry in Idaho is a significant employer, providing jobs for over 33,000 workers. It is interesting to note that approximately 90% of these workers are foreign-born, as reported by the Idaho Dairymen’s Association.

According to a study conducted by the University of Idaho’s McClure Center for Public Policy Research, Idaho businesses, including dairy farmers, have acknowledged employing undocumented workers when they are unable to find authorized workers. Though there are no precise statistics available on the number of undocumented workers in Idaho, these businesses have confirmed the presence of such workers within their workforce.

Idaho’s agriculture industry heavily depends on the H-2A labor program, a federal initiative that permits employers to recruit foreign labor for seasonal work, with the workers returning to their home countries after the growing season. However, dairy farmers face a unique challenge as they are required to milk cows and tend to the dairy every day, throughout the year.

According to Hernan Tejeda, an economist and researcher at the UI’s College of Agriculture and Life Sciences, dairy work is extremely challenging and there is a scarcity of individuals willing to take on such laborious tasks. This is precisely why dairy farmers frequently depend on undocumented workers.

“The wage rate for dairy workers is approximately $18 to $20 per hour,” Tejeda highlighted. “However, individuals can easily find jobs at McDonald’s or in the construction industry, which offer a less physically demanding work environment and more flexibility in working hours. It becomes challenging to attract workers to the dairy industry given the labor-intensive nature of the job and the requirement of being present throughout the day.”

To entice American workers, dairies might need to significantly raise wages, according to Tejeda.

According to him, the slim profit margins make it infeasible to implement a substantial wage increase, rendering the business unviable to operate.

E-Verify or mass deportations, both of which have been promised under the Trump administration and supported by Idaho Gov. Brad Little, pose a threat to the workforce that numerous industries, particularly dairies, heavily depend on.

According to Philip Watson, an economist and researcher at the University of Idaho College of Agriculture and Life Sciences, the state could face a loss of over $900 million in gross domestic product if it were to eliminate its undocumented workforce.

According to Watson, implementing state policies such as mandatory E-Verify would place Idaho dairies at a disadvantage in terms of their ability to hire workers and maintain their milk production at the level that Idahoans are accustomed to.

According to Watson, the dairy industry believes that allowing new dairies to establish or existing ones to expand would put them at a competitive disadvantage. He explains that if the cost of producing milk in Idaho becomes too high compared to other states, there is a possibility that dairies may start leaving the state.

Under the current policy, employers in states without mandatory E-Verify laws are required to fill out an I-9 form for each employee. This involves reviewing an employee’s work authorization documents, which can include a passport, driver’s license, permanent resident card, or other forms. However, the Immigrant Employee Rights Act prohibits employers from inquiring about an individual’s legal status.

Using the E-Verify program provides employers with an additional layer of protection that they wouldn’t have otherwise, according to advocates. They argue that utilizing E-Verify allows employers to inquire about an employee’s legal status, potentially safeguarding them from the potential civil and criminal consequences associated with hiring unauthorized workers in the United States.

Immigrants play a vital role in the economy of Idaho.

Immigrants ‘important’ to Idaho economy

Redman is currently in discussions with the Idaho Dairymen’s Association and Idaho Farm Bureau to find a solution that would allow for the proposal of an E-Verify bill without putting their industries at risk. However, finding common ground seems to be challenging in this situation.

During last year’s legislative session, Naerebout expressed strong support for border security. He emphasized the crucial role that the immigrant workforce plays in Idaho’s economy, particularly in the dairy and farming sectors. Naerebout acknowledged their loyalty, dedication, and family-oriented nature, highlighting their invaluable contribution to the state’s progress.

Moyle expressed his hopes for the dairymen to reach an agreement with lawmakers, while also warning that if they fail to do so, they will face significant challenges.

He suggested implementing E-Verify in a phased manner for dairies, allowing the federal government and the dairies to adjust accordingly.

However, Simpson is urging the Legislature to slow down.

“It is crucial for the Legislature to exercise restraint,” he emphasized. “While I acknowledge the intentions behind their efforts, it is imperative that they consider the potential secondary consequences.”

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