A bill that aims to crack down on employers who hire workers in the country illegally goes before the House Business and Labor Committee on Wednesday.  

Rep. Courtenay Sprunger, R-Kalispell, introduced House Bill 226, otherwise known as the Legal Employment and Government Accountability Law or LEGAL Act, with the support of 30 other Republican lawmakers. 

The act grants the Montana Department of Labor and Industry the power to audit employers for documents, such as I-9 forms, that are used to verify an employee’s legal working status. This power has historically been reserved for federal agencies such as Immigration Customs Enforcements and the Department of Homeland Security.  

Sprunger described the act as a low-cost solution to reducing undocumented labor as state inspectors would be expected to incorporate the new review process into their existing workload. 

Under the proposed law, employers face a fine up to $2,500 for each unverified employee they hire and may have their business license suspended after a third violation. Employers refusing to provide requested documentation would also be subject to a fine. The law does not provide guidance on how the state should address employees found working without verification. 

Sprunger said she worked with the Department of Labor to write the bill after meeting with local business owners that believed their competitors were using undocumented labor to cut costs. 

“We’re seeing it particularly in the construction trade,” said Sprunger, though she was unable to provide documentation for the claim. 

Pew Research Center estimated that less than 5,000 unauthorized immigrants worked in Montana in 2022, representing less than 1% of the state’s workforce. According to the report, Montana had the lowest percentage of unauthorized immigrants in the workforce of any state.  

The hearing for the LEGAL Act begins at 8 a.m. on Jan. 22. For more information on how to access and participate in the hearing, visit legmt.gov.

Reporter Hailey Smalley can be reached at [email protected].