The Supreme Court decided 5-to-3 that states can punish employers who violate a mandatory E-Verify law. The court challenge was led by the U.S. Chamber of Congress against Arizona's 2007 law that suspends a business's license if they don't use E-Verify to check the eligibility of all new hires.
During the creation of the Basic Pilot Program, which is now known as E-Verify, Congress gave authority to the states to use its business licensing practices as penalty for companies that hire illegal workers. The Court used that clause in its majority opinion.
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