News & Insights

Facts and Circumstances

• California Labor Code Section 2805(a) made it unlawful for employers to knowingly hire undocumented workers if such employment adversely affected lawful resident workers.
• The petitioners, migrant farmworkers, alleged that employers violated this law by hiring undocumented workers, which resulted in the displacement of lawful resident workers and suppression of wages.
• The California Court of Appeal struck down the law, holding that it improperly encroached on the federal government’s exclusive power over immigration.

Legal Issues Addressed

• Does the California law regulating the employment of undocumented workers constitute an unconstitutional regulation of immigration?
• Is the California law preempted by the comprehensive federal framework established by the INA?

Court’s Decision and Reasoning

State Regulation of Employment

• The Court held that California’s law fell within the state’s police power to regulate employment relationships and protect workers.
• Employment laws addressing local concerns, such as preventing wage suppression and ensuring job availability for lawful residents, are legitimate exercises of state authority.

Federal Preemption Not Absolute

• The Court clarified that not all state laws affecting aliens are preempted by federal immigration law.
• While the INA establishes a comprehensive scheme for regulating immigration and naturalization, it does not expressly or implicitly preclude states from enacting harmonious employment regulations.
• The INA’s lack of sanctions against employers hiring undocumented workers suggests Congress did not intend to occupy the entire field of employment regulation.

Impact on Immigration

• The Court distinguished between laws that regulate immigration (defining who can enter and remain in the U.S.) and those that have an incidental impact on immigration.
• California’s law aimed to address economic and employment concerns rather than regulate immigration directly.

Harmonization with Federal Law

• The Court noted that California’s law was consistent with federal objectives and did not create a conflict.
• The Farm Labor Contractor Registration Act, a federal law, explicitly recognized the role of state regulations in addressing local labor issues, reinforcing the notion that states have a role in this area.