As of July 1, 2026, Indiana employers face significant new compliance obligations under Senate Bill 76, known as the “FAIRNESS Act.” The law establishes strict penalties for employers that knowingly or intentionally recruit, hire, or continue to employ individuals who are not authorized to work in the United States.

The legislation gives the Indiana Attorney General broad enforcement authority and creates a graduated penalty structure that can ultimately lead to the permanent loss of an employer’s ability to operate within the state.

  1. Expanded Enforcement Authority

Under the FAIRNESS Act, the Indiana Attorney General’s Office has the authority to investigate allegations that employers have knowingly hired or retained unauthorized workers. As part of its enforcement powers, the Attorney General may:

  • Conduct investigations into potential violations;
  • Issue civil investigative demands;
  • Seek injunctive relief through the courts; and
  • Pursue civil penalties and operating authorization suspensions against noncompliant employers.
  1. Significant Penalties for Violations

The FAIRNESS Act imposes a civil penalty of $10,000 for violations and establishes escalating consequences based on the employer’s compliance history.

For employers with no prior violations:

  • Single violation: A five-day suspension of operating authorizations at the location where the violation occurred.
  • Multiple violations: A ten-day suspension of operating authorizations at the affected location.

For repeat offenders:

  • Subsequent violations: A 180-day suspension of operating authorizations at the location of the violation.
  • Egregious repeat violations: Permanent statewide revocation of all operating authorizations, effectively preventing the employer from conducting business in Indiana.

These penalties underscore the state’s intent to deter the knowing employment of unauthorized workers and encourage employers to maintain robust hiring and verification practices.

  1. Opportunity to Cure for First-Time Violators

The law provides employers with no prior violations an opportunity to address compliance concerns before formal litigation begins.

Before filing a lawsuit, the Attorney General must provide written notice of the alleged violation. Upon receiving notice, the employer has 15 business days to demonstrate compliance by either:

  • Providing evidence that it exercised reasonable diligence in verifying the worker’s employment eligibility; or
  • Submitting a sworn affidavit confirming that:
    • All unauthorized workers have been terminated;
    • The employer has verified the employment eligibility of its workforce; and
    • Procedures are in place to maintain future compliance.
  1. What Employers Should Do Now

With the FAIRNESS Act now in effect, Indiana employers should review their hiring and onboarding procedures to ensure compliance with federal employment eligibility requirements. Key steps include:

  • Auditing current Form I-9 processes;
  • Training hiring managers and human resources personnel on work authorization requirements;
  • Maintaining thorough documentation of employment eligibility verification efforts;
  • Conducting periodic internal compliance reviews; and
  • Establishing procedures to promptly address any eligibility concerns that arise.
  1. Final Thoughts

Indiana’s FAIRNESS Act represents one of the state’s most significant workplace immigration enforcement measures to date. The combination of civil fines, operational suspensions, and potential business license revocations creates substantial risk for employers that fail to verify work authorization properly. As enforcement begins, employers should take proactive steps to review their employment practices and strengthen compliance programs to avoid costly penalties and business disruptions.

The lawyers at MHS are available to assist in light of this new law.