Montana House votes down harsher penalties for employers hiring immigrants in US illegally

The Montana House on Monday narrowly voted down a bill that would have imposed tougher penalties on employers caught hiring immigrants in the United States illegally.

Sponsored by Rep. Lukas Schubert, R-Evergreen, House Bill 536 proposed new penalties for individuals and businesses that employ immigrants in the U.S. illegally, including the revocation of state-issued licenses, such as drivers' licenses and hunting licenses. Currently, employers that violate unlawful employment laws are subject to a fine of up to $300.  

The bill would have also created a private right of action, allowing individuals to sue if they believed a competing company employed immigrants here illegally. 

It failed 50-49 during its second reading in the House on March 24. 

Pew Research Center estimated that unauthorized immigrants make up less than 1% of Montana's workforce, but Schubert maintained that immigration remains a top issue for the state. 

“It is critical we attack the economic incentives for illegal aliens to remain in our state and thus cause them to self-deport,” said Schubert during a Feb. 21 House Judiciary Committee hearing. 

In his opening remarks on the bill, Schubert cited a recent poll conducted by Nonstop Local and SurveyUSA in which 23% of respondents said immigration was their top concern and made an unverifiable claim that 11 to 12 million people had illegally immigrated to the United States under the Biden administration.  

The most recent data from the Department of Homeland Security estimates that 11 million immigrants were living in the U.S. without permission in 2022, 79% of whom entered the country before 2010. 

The legislation drew harsh criticism from both sides of the aisle, with critics arguing that the envisioned punishments could have disastrous consequences for Montana’s business owners.  

Karli Johnson, a representative of the Montana Farm Bureau Federation, argued that the loss of a license and the steep fines accrued from lawsuits could quickly bankrupt the typical farm operation, which generates an average annual income of $40,000. While she maintained that the federation opposed illegal labor, Johnson emphasized that farmers and ranchers often hire temporary workers on quick deadlines, potentially making them more susceptible to an unintentional slip-up. 

“With this bill, we’re asking farmers and ranchers to not only be mechanics, accountants and animal science and crop science experts. We’re also asking them to be experts in immigration, and that’s really challenging for our folks on the ground,” said Johnson. 

Schubert responded to opponents’ concerns with assurances that the Department of Justice would only pursue convictions for those who knowingly violate the law.  

“They are going to try to go after the real offenders because they only have so much resources,” said Schubert. 

Under the bill, the state would have allocated a two-year budget of $5 million to the Department of Justice. Schubert said the funds would be used to create a three-to-five-person task force to investigate unlawful employment allegations. 

But lawmakers on both sides of the aisle balked at the price tag. 

"I’m not convinced we have that much of a problem to begin with,” said Rep. John Fitzpatrick, R-Anaconda. “And then we’re going to put a $5 million fiscal note on a bill that essentially does not have a defined problem.” 

Rep. Ed Stafman, D-Bozeman, compared the proposed cost to another bill introduced by Rep. Courtenay Sprunger, R-Kalispell, which similarly aims to crack down on unlawful hiring practices. House Bill 226 proposes to do so through regular audits of business’s I-9 forms for an average annual cost of $93,000.  

Sprunger's bill passed the House in February with an 87-13 vote and is scheduled for a hearing in the Senate Business, Labor and Economic Affairs Committee on Thursday.  

Reporter Hailey Smalley can be reached at hsmalley@dailyinterlake.com or 758-4433.