Effective July 1, 2026, Indiana is taking a more active role in immigration-related employment law through Senate Bill 76. This bill introduces state-level scrutiny that can trigger federal investigations and create new financial liabilities for local businesses.
Understanding the Risks
The bill prohibits employers from “recklessly or intentionally” hiring unauthorized workers. If a state or local agency finds probable cause of a violation, they are now required to notify the U.S. Department of Homeland Security (DHS). This creates a direct link between local inquiries and federal audits. Furthermore, employers found in violation may be required to pay for the state’s investigative costs, adding a significant financial burden beyond standard fines.
Recommended Next Steps for Employers
To stay compliant with Indiana’s SB 76, employers should conduct internal I-9 audits, update recruiter training on hiring standards, and maintain meticulous documentation to defend against potential state inquiries.
How HR Works Can Help
Managing the intersection of state and federal hiring laws is increasingly complex. Our team helps you stay compliant by performing detailed I-9 audits to identify potential risks before they become legal issues.
Current Virtual Helpline or Strategic Services clients may contact the Virtual Helpline or their designated HR Consultant for assistance with Form I-9. Not an HR Works client? Contact us today to learn more about how we can support your organization.
