New Indiana Law Imposes Requirements for Employers Concerning Employment of Unauthorized Aliens

by Nicholas J. Golding and Lee M. Braun

On March 5, 2026, Indiana Governor Mike Braun signed Senate Enrolled Act No. 76, also known as the “Fairness Act” (“Act”), a sweeping immigration enforcement bill that will go into effect on July 1, 2026. In addition to requiring local governments to cooperate with federal immigration detainer requests against individuals within their custody, the Act also includes recruiting, hiring, and employment requirements Indiana employers must meet to avoid potential sanctions by the Attorney General.

The Act adds a new chapter to the Indiana Code providing that it is unlawful for an employer to knowingly or intentionally recruit, hire, or continue to employ an unauthorized alien in Indiana. Employers can avoid liability by showing they engaged in reasonable diligence to confirm the work eligibility of an individual before recruiting, hiring, or continuing to employ the individual, such as using the federal E-Verify system or following industry best practices. If the Attorney General determines there is probable cause that an employer violated these requirements, they are authorized to bring an enforcement action seeking penalties against the employer, up to and including the permanent revocation of all the employer’s operating authorizations in the state.

Although the Act is currently set to take effect on July 1, a pending legal challenge could impact its future. On April 8, Monroe County Sheriff Ruben Marte filed a federal lawsuit in the Southern District of Indiana seeking relief against the Act and a declaration from the Court that it is unconstitutional because it allegedly violates the Fourth Amendment’s prohibition against detaining individuals without a judicial warrant or probable cause that the person committed a crime. While it is possible the Southern District of Indiana could rule the Act unconstitutional, for now Indiana employers should continue to prepare for the Act to take effect on July 1.

For more information on compliance with the Act, please contact Nicholas J. Golding, Lee M. Braun, or any member of the KDDK Labor and Employment group.

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