Indiana Strengthens Enforcement Against Employment of Unauthorized Workers 

Indiana employers should be aware of a new state law that increases enforcement authority related to the employment of individuals who are not authorized to work in the United States. 

Effective July 1, 2026, Indiana’s Senate Enrolled Act 76, also known as the FAIRNESS Act, prohibits employers from intentionally or recklessly recruiting, hiring, or employing workers unauthorized to work in the U.S. The Indiana Attorney General's Office will investigate suspected violations, and employers can face civil fines of up to $10,000 and the suspension or revocation of their business licenses. 

Under Senate Bill 76 (SB 76), the Indiana Attorney General may initiate an enforcement action against an employer when probable cause exists that the employer knowingly or intentionally recruited, hired, or continued to employ an unauthorized noncitizen within the state. The legislation reflects a growing trend among states to take a more active role in enforcing employment eligibility requirements traditionally associated with federal immigration law. 

While federal law has long prohibited employers from knowingly employing individuals who lack authorization to work in the United States, Indiana's new law creates an additional layer of potential state-level enforcement. As a result, employers should ensure that their hiring and onboarding practices are consistently applied and that employment eligibility verification requirements are completed accurately and on time. 

Federal law requires employers to complete Form I-9 for every employee hired in the United States to verify identity and work authorization. Key requirements include:

• Employees must complete Section 1 by their first day of work.  

  
  

• Employers must review original work authorization documents and complete Section 2 within three business days of the employee's start date.  

  
  

• Employers must retain Form I-9 for three years after hire or one year after termination, whichever is later.  

Employers should continue to follow Form I-9 requirements for all new hires and maintain appropriate documentation supporting employment authorization. Organizations should also ensure that managers and hiring personnel understand the importance of complying with employment verification procedures and avoiding  

Practices that could create liability under federal or state law. 

For federal contractors, compliance remains particularly important. Federal contracting regulations require participating employers to utilize the E-Verify system to confirm the employment eligibility of newly hired employees assigned to covered federal contracts. Proper use of E-Verify, combined with timely and accurate completion of Form I-9 requirements, can help reduce compliance risks and demonstrate good-faith efforts to verify work authorization.  E-Verify does not replace Form I-9. Employers required to use E-Verify must still complete and retain Form I-9 for all new hires. 

As part of our onboarding and compliance services, C2 Essentials processes new hires through E-Verify when required under applicable federal contracting regulations and assists clients with I-9 compliance best practices. Employers with operations in Indiana should review their hiring procedures and employment eligibility verification practices to ensure continued compliance with both federal requirements and evolving state laws. Clients with questions regarding I-9 or E-Verify obligations are encouraged to contact their HR team for guidance.