Indiana FAIRNESS Act: Employer Verification Requirements

Indiana’s FAIRNESS Act (SEA 76 – 2026) will go into effect July 1, 2026. With it comes new compliance requirements for employers in the State of Indiana.

Specifically, the FAIRNESS Act makes it unlawful for employers to knowingly or intentionally recruit, hire, or continue to employe individuals who lack legal authorization to work in the United States. The law does not apply retroactively to any conduct prior to July 1, 2026.

The Act grants the Indiana Attorney General’s Office authority to investigate employers suspected of violations, issue civil investigative demands, and file civil actions seeking injunctive relief. According to media report it appears that this will be a major priority for the current Attorney General’s office. If a court finds a violation by a preponderance of the evidence, the court may impose the following penalties:

    • First-time single violation: Five-business-day suspension of operation authorizations (e.g., licenses, permits, registrations) at the violation location, which may result in a complete shutdown at that site or other significant operational disruptions.
    • Multiple first-time violations: 10-business-day suspension
    • Repeat violations: 180-day suspension
    • Egregious repeat offenders: Permanent revocation of all operating authorizations statewide


Procedural Safeguards for Employers with a First Violation

The FAIRNESS Act provides safeguards for employers with no prior violations: Before filing suit, the Attorney General’s Office must provide written notice of a probable cause determination. The employer then has 15 business days to demonstrate either:

    1. it exercised reasonable diligence in verifying work eligibility; or
    2. submit an affidavit confirming that it has terminated all unauthorized workers, verified its entire workforce, and will not knowingly employ unauthorized aliens going forward.

If the employer takes either step, the Attorney General’s Office may not proceed with the action.

What is “Intentionally” and “Knowingly”

To avoid potential liability, employers must demonstrate they took reasonable steps to verify work eligibility by using E-Verify or following “industry standard best practices”. The Act does not define industry standards. Abstaining from verifying employee hireability is not a defense to not intentionally or knowingly hiring an individual who does not meet work eligibility requirements.

Steps to Take Prior to July 1:

    1. Audit workforce, confirm employment documentation is complete and accurate. Identify any gaps of verification procedures.
    2. Be sure to use E-Verify and train staff to treat the software as a tool not a conclusive result. Flagging and investigating inconsistencies when they occur.
    3. Employers should maintain written hiring policies, keep detailed record of verification steps and train HR and hire managers.
    4. The Attorney General may use investigation sources like:
      1. Public Tips
      2. Job Site visits
      3. Civil investigative demands
        1. Note: The Attorney General is allowed to investigate incidents within the previous three years, however, the Act does not apply to conduct occurred before July 1, 2026.

Anti-Retaliation

This act also prohibits employers from retaliating against any employee who reports concerns to or cooperates with the Indiana Attorney General’s office. Employers should ensure that supervisors understand this anti-retaliation protection and that no action is taken against employees who raise immigration-compliance concerns.