Issue

Should the state consider additional requirements of employers to enforce federal immigration laws?

Policy

The Minnesota Chamber opposes state immigration legislation that will place administrative or other burdens on Minnesota employers. Immigration is a federal issue and should be addressed only at the federal level. Doing otherwise will create a patchwork of immigration laws among the states when uniformity is needed. The Chamber supports comprehensive federal reform including secure borders. Successful federal reform will modify immigration policies without creating more obstacles for workers to connect with employers. Thus, the following actions must occur simultaneously:

• Reform should include a timely and affordable way for current immigrants and their families, regardless of status, to become documented legal participants in our society. We support a path to permanent residency for all immigrants residing in the United States who are not otherwise excluded for reasons such as criminal convictions. The Chamber supports a timely reduction of backlogs where family and professional workers have been waiting to immigrate for many years.

• Reform should include a simple and accurate status verification that is affordable and accessible, especially for small businesses. Reforms should protect those meeting their obligations from liability.

Reform should include a simple and timely approach to the future flow of immigrants, including permanent and temporary status. New rules should allow sufficient immigration that meets the needs of the business community and continues current workplace standards as our economy grows. Currently there is not a temporary immigration program that works for several industries important to Minnesota (i.e. dairy and nursery industries). Companies that cannot use the existing H2-A or H-2B visa programs need a solution.

Business Impact

State-level immigration policies burden businesses with unfunded requirements that are not required uniformly across the country. Minnesota businesses may be put at a disadvantage from competitors in other states. For example, Minnesota’s state law requires use of the federal E-Verify program for employers that have contracts with the state of Minnesota in excess of $50,000. Employers are concerned about E-Verify for several reasons. First, employers are concerned about the accuracy of the program and the ability of the Social Security Administration to handle a rapid increase in its use – and the barriers this will create for businesses that need employees and workers who need employment. Second, Illinois passed a law that prohibited businesses from using E-Verify until the level of accuracy increased. In this situation, businesses complying with the law in Minnesota would be breaking the law if they operate in Illinois. Other states could pass similar laws which would increase confusion and compliance problems for businesses. Third, there are human resource costs with participating in E-Verify. Despite the many disadvantages, there is no safe harbor for businesses. Even if employees pass the E-Verify system, businesses will be held liable for workers who have successfully used false identification.

In 2011, the baby boom generation will start turning 65, and in 2020 the number of people 65 and older will surpass the grade-school population. Beginning in 2008, Minnesota saw a 30-percent jump in workers turning 62. Competition for the future workforce will increase. For example, the Minnesota state demographer anticipates the number of new workers (18- to 24-year-old population) entering the workforce will decrease 1.2 percent during 2005-2010 and drop another 3.5 percent from 2010-2015. In addition, of the total projected job openings for 2006-2016, 10 percent will be new jobs and more than 20 percent will be replacement jobs.

Given this workforce shortage, Minnesota businesses recognize the importance of the growing immigrant workforce to meet labor needs. The percent of foreign-born workers ages 25-34 grew from 8.5 of Minnesota’s labor force in 2000 to 12.6 in 2006. Many industries such as restaurant and food service, hospitals, colleges and universities, construction, medical equipment manufacturing, manufacturing, processing and animal slaughtering already depend on the immigrant workforce.

Foreign-born workers are most concentrated among both the least and most educated in Minnesota. There are many misconceptions about how immigrant workers are compensated. In the dairy and nursery/landscape industries, for example, jobs filled by immigrants typically pay 30 percent to 40 percent above minimum wage. Entry-level milkers at one rural dairy in Minnesota earn more than $30,000 per year and have access to 401(k) accounts and health insurance. Most seasonal nursery and landscaping jobs pay $8 to $18 per hour.