The Nevada Attorney General was asked to opine on whether a new rule allowing the Tax Commission to impose fines on employers with business licenses that hire illegally present workers was legal. The answer is no and here’s why, according to the opinion:
IRCA preempts state laws imposing civil or criminal sanctions, but does not preempt “licensing or similar laws.” The “administrative fine” imposed by AB. 383 is a “civil sanction” which is both expressly and impliedly preempted by federal law. It is not a licensing or “fitness to do business” law because the Tax Commission has no other authority to act against an employer’s business license for immigration-related matters.
Therefore, it is an attempt to impose an additional state sanction on certain businesses that violate the federal law, which is expressly preempted. AB. 383 also conflicts with the comprehensive federal scheme, which already sets maximum monetary sanctions for violations of IRCA.
Hat tip to Peter Ashman in Arizona for sending this. Here’s the file.Download Nevada2008_MARCH_NV_AG.pdf