The South Carolina Illegal Immigration Reform Act, a comprehensive reform law deemed the "strongest in the nation" by state legislators, was signed by Governor Mark Sanford on June 4, 2008. The Act, a compromise of both sides of the General Assembly of South Carolina as well as the office of the Governor, was ratified by the General Assembly on May 29, 2008, after a 94-19 House vote.

The Act, H. 4400, requires both public and private employers to verify the work authorization of all new employees, either through the use of the free federal online E-Verify system or by checking the employee's driver's license. The E-Verify online employment verification system is administered by the Department of Homeland Security and the Social Security Administration and lets employers know whether information presented by a new employee matches government records.

If an employer wishes to verify work authorization using the employee's driver's license, the license must be a valid South Carolina license, an identification card issued by the South Carolina Department of Motor Vehicles, or a valid driver's license or identification card from a state with driver's license requirements as strict as South Carolina's. A list of those requirements will be determined by the Executive Director of the South Carolina Department of Motor Vehicles.

Private Employers

On or after July 1, 2009, all private employers in South Carolina will be imputed a South Carolina employment license, permitting a private employer to employ a person in the state. Therefore, to employ a person, the employer's employment license must be in effect. The employment license remains in effect as long as the private employer is in compliance with the Act.

The Act takes effect as follows:

• Private employers with 100 or more employees − on and after July 1, 2009
  
  
• Private employers with less than 100 employees − on and after July 1, 2010

To assist private employers in understanding the Act's requirements, the director of the Department of Motor Vehicles shall send written notice of the requirements, including a list of states with driver's license requirements at least as strict as South Carolina's, to all South Carolina employers no later than January 1, 2009. Additionally the information will be published on the Department of Labor, Licensing and Regulation's website. However, this notice is not a legal requirement and failure to receive it would not provide private employers a defense in the event of noncompliance.

A private employer will be considered to be in compliance with the provisions of the Act when in good faith it verifies the immigration status of a new employee.

The Department of Labor, Licensing and Regulation will enforce the Act. For violations of the verification rules, private employers must be assessed a civil penalty ranging from $100 to $1,000. However, if a private employer knowingly or intentionally employs an unauthorized alien, penalties can range from a suspension of the employer's employment license from 10 days to 30 days to revocation of the employment license for at least 5 years.

Additionally, the private employer will be assessed a reinstatement fee of not more than $1,000 to cover the costs of investigating and enforcing the matter. Each verification violation is a separate violation.

In addition to other penalties, a person who knowingly makes or files any false, fictitious, or fraudulent document, statement, or report is guilty of a felony and must be fined within the discretion of the court or imprisoned for not more than 5 years.

Public Employers and State Contractors

On or after January 1, 2009, every public employer must register and participate in the federal work authorization program to verify the employment authorization of all new employees. Additionally, a contractor or subcontractor who contracts to provide services for the State must begin registering and participating in the work authorization program as follows:

• Contractors, subcontractors, or sub-subcontractors with 500 or more employees − on and after January 1, 2009
  
  
• Contractors, subcontractors, or sub-subcontractors with 100-499 employees − on and after July 1, 2009
  
  
• All contractors, subcontractors, or sub-subcontractors − on and after January 1, 2010

A public employer complies with this Act if it obtains a written statement from the contractor certifying that the contractor will comply with the verification process. A contractor or public employer who in good faith complies with the requirements of this Act may not be sanctioned or subjected to civil or administrative action for employing an individual who is not authorized for employment in the United States.

Other Relevant Provisions

The Act also provides:

• A telephone hotline for reporting immigration violations.
  
  
• A prohibition against "wages or remuneration for labor services paid to an individual of six hundred dollars or more from being claimed as a deductible business expense for state income tax purposes unless the individual is an authorized employee."
  
  
• A felony charge for anyone who knowingly or in reckless disregard transports, moves, or attempts to transport a person within the state that is not legally authorized to be there.
  
  
• A criminal charge for a person who displays, causes or permits to be displayed, or has in his or her possession a false, fictitious, fraudulent, or counterfeit identity document. The first offense is a misdemeanor and includes a fine of not more than $100 or imprisonment of not more than 30 days. A second offense and any other subsequent offense is a felony and includes a fine of not more than $500 or imprisonment of not more than 5 years.
  
  
• A civil cause of action for a person who is terminated by an employer if the purpose for discharge was to replace the worker with another person whom the employer knew or should have known was not lawfully admitted to the United States or not authorized to work in the United States. The civil cause of action section of the Act takes effect 90 days after the effective date of the Act.