The Indiana FAIRNESS Act (Senate Enrolled Act 76, or SEA 76), signed by Governor Mike Braun on March 5, 2026, and effective July 1, 2026, strengthens rules against knowingly hiring or employing unauthorized workers.
Key Provisions on Hiring and E-Verify
Prohibitions: It is unlawful for any employer operating in Indiana (covering hires performing work in the state) to knowingly or intentionally recruit, hire, or continue to employ an unauthorized alien (someone not authorized to work in the U.S.). This applies to the entire employment relationship, not just initial hiring.
“Reasonable Diligence” Defense / Safe Harbor: Employers can avoid liability by demonstrating they exercised reasonable diligence to verify work eligibility before recruiting, hiring, or continuing employment. Using the federal E-Verify program is explicitly recognized as a way to show this. If E-Verify confirms a worker as authorized, it creates a rebuttable presumption that the employer did not knowingly hire an unauthorized worker (strong protection, even if authorization later proves erroneous). Another option is following “industry best practices,” but this is weaker and more open to challenge since it’s less defined.
Applies to All Employers: Unlike some prior rules limited to public contractors, this covers private employers of any size with workers in Indiana.
Enforcement and Penalties
The Indiana Attorney General investigates (via civil investigative demands) and can file civil actions.
Penalties (state-level, in addition to any federal I-9 penalties):
- Civil fines up to $10,000 per violation.
- Suspension of operating authority (e.g., 5 business days for first offenses at the violating location).
- Permanent revocation of authority to operate in Indiana (for repeat or severe cases, potentially across locations).
- Injunctive relief or other court remedies.
- Enforcement is expected to focus initially on industries like construction with higher rates of unauthorized workers.
Background and Context
This builds on existing Indiana requirements (e.g., E-Verify for public employers/contractors) by adding employer-facing civil penalties and emphasizing “fairness” in hiring by reducing unfair competition from unauthorized labor. It also includes broader immigration enforcement elements (e.g., cooperation with federal detainers), but the hiring provisions are the core for employers.
Note: A legal challenge to parts of the law has been mentioned, but as of available information, it remains scheduled to take effect July 1, 2026. Employers should prepare by enrolling in E-Verify, auditing existing I-9s, creating E-Verify cases for new hires within three business days of the start date, and documenting compliance.
For the official text, check the Indiana General Assembly site (search for SB 76 / SEA 76).
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