Indiana’s new FAIRNESS Act, also known as Senate Enrolled Act 76, took effect on July 1, 2026, introducing significant new compliance obligations for employers with workers performing services in the state. The law creates state-level penalties for hiring and employing unauthorized workers, adding meaningful operational and financial consequences for employers that fail to comply.
For employers, the Indiana FAIRNESS Act is an important reminder that employment eligibility compliance is not limited to federal Form I-9 requirements. State-level laws are continuing to shape how organizations must verify, document, and manage work authorization compliance across their workforce.
Who does the Indiana FAIRNESS Act apply to?
The FAIRNESS Act applies to all employers with employees performing work in Indiana, regardless of where the organization is headquartered. This means companies do not need to be based in Indiana to fall within the scope of the law.
The law prohibits employers from knowingly or intentionally recruiting, hiring, or continuing to employ individuals who are not authorized to work in the United States. For employers with distributed workforces, multi-state operations, or remote employees, this adds another reason to ensure employment eligibility processes are consistent, well-documented, and aligned with current requirements.
What are the potential penalties?
The Indiana FAIRNESS Act establishes civil penalties of up to $10,000 per violation. In serious or repeat cases, the law also authorizes business suspension or permanent revocation of operating authority.
These penalties highlight the importance of having a defensible compliance program in place. Employers should be able to show that they have taken reasonable, consistent steps to verify work authorization and address potential compliance issues before they become enforcement concerns.
How does E-Verify factor into the law?
One notable feature of the Indiana FAIRNESS Act is its safe harbor provision for employers using E-Verify. Under the law, E-Verify can help employers demonstrate reasonable diligence in verifying work authorization. If an employee is confirmed as work-authorized through E-Verify, that confirmation may serve as a documented compliance position in the event of an investigation.
For employers already using E-Verify, this reinforces the value of maintaining accurate records and ensuring consistent use of the system. For employers that are not currently using E-Verify, the law may prompt a closer review of whether their current verification practices provide sufficient documentation and risk protection.
What should employers do now?
Employers with workers in Indiana should review their employment eligibility compliance programs and evaluate whether their current processes are prepared for the new state-level requirements.
Practical next steps may include:
Confirming whether the organization has employees performing work in Indiana
Reviewing Form I-9 completion, retention, and remediation practices
Evaluating whether E-Verify is being used consistently where applicable
Ensuring employment eligibility records are accurate and accessible
Identifying any process gaps that could create risk during an investigation
Training HR, onboarding, and compliance teams on updated requirements
As regulations continue to evolve, employers should take a proactive approach to I-9 compliance and employment verification. A strong program is not just about completing forms. It is about having clear processes, reliable documentation, and a defensible compliance position if questions arise.
