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THE OHIO WORKERS
FIRST ACT
HOUSE BILL 380
Legislation Barring
Undocumented
Workers from
Receiving Workers’
Compensation
Benefits
Power point presentation hb 380 v10
THE CURRENT STATE OF OHIO
LAW REGARDING
UNDOCUMENTED WORKERS
O.R.C. §4123.01(A)(1)(b) “Employee” includes “aliens and
minors, household workers who earn one hundred sixty
dollars or more in cash in any calendar quarter from a
single household from a single employer.”
Even when an injured worker is subject to deportation,
he or she is an employee under that definition. Rajeh v.
Steel City Corp., 157 Ohio App.3d 722, 2004 Ohio 3211.
The court held that if the legislature intended to bar
illegal aliens from receiving benefits it would have done
so, as it did in the case of the statute authorizing
unemployment benefits.
OHIO HOUSE BILL 380
Passed by the Ohio House on December 6, 2017 by a vote of
62-30
Enacts Sections 2307.82 and 4123.513 and amends Sections
2743.02, 2744.02, 4123.01, 4123.51, and 4123.59 to:
 “prohibit illegal and unauthorized aliens from receiving compensation
and…benefits under Ohio’s Workers’ Compensation Law”
WHY SHOULD WE CARE?
WHY SHOULD WE CARE?
Creates an additional possibility for personal injury suits to arise out
of workplace injuries
Limits the number of potential workers’ compensation claims
 The BWC does not maintain data on the number of claims filed by undocumented
workers and the legislative service commission could not estimate how much the
law would reduce overall benefit payments
Raises the question of how Ohio should deal with the issue of
workers’ compensation benefits to undocumented workers
 Raises societal questions about undocumented workers in general
IS THIS REALLY A BIG
ISSUE?
IS THIS
REALLY A
BIG
ISSUE?
According to an estimate from the Pew
Research Center in 2014, there are about
95,000 undocumented workers in Ohio
That is the 24th largest undocumented
population of any state in the country
TOTAL U.S. UNDOCUMENTED
WORKERS = 11,100,000
5 STATES WITH 500,000-
2,350,000 UNDOCUMENTED
WORKERS
12 STATES WITH 180,000 TO
450,000 UNDOCUMENTED
WORKERS
8 STATES WITH 100,000 TO
130,000 UNDOCUMENTED
WORKERS
18 STATES WITH 25,000-
95,000 UNDOCUMENTED
WORKERS
UNDOCUMENTED IMMIGRANTS
CONSTITUTE AN ESTIMATED 1.1%
OF OHIO’S WORKFORCE
IN SEVERAL OCCUPATIONS
UNDOCUMENTED WORKERS
ACCOUNT FOR 15% OR MORE
OF THE TOTAL WORKFORCE
Farming, Fishing and Forestry (26%)
Domestic Workers (22%)
Building/Grounds Cleaning and Maintenance (16%)
 Construction (15%)
 (Source-Immigrants don’t make up a majority of workers in any U.S. industry, Pew
Research Center, March 14, 2017)
Power point presentation hb 380 v10
Power point presentation hb 380 v10
ESTIMATED UNDOCUMENTED
FOREIGN-BORN OHIO
RESIDENTS
WHAT WOULD THE OHIO
WORKERS FIRST ACT DO?
The Act would enact O.R.C.
§2307.82, which limits personal
injury actions by undocumented
workers to instances where the
employer knew the injured
worker was not authorized to
work
01
The Act would revise O.R.C.
§4123.01 to make
undocumented workers
ineligible to receive workers
compensation benefits
United Citizens who are
dependents of undocumented
workers would have the right to
death benefits
02
The Act would still allow
undocumented workers to sue
employers for an intentional tort
03
THE OHIO WORKERS FIRST
ACT:
PERSONAL INJURY CLAIMS
THE OHIO
WORKER
S FIRST
ACT:
PERSON
AL
INJURY
CLAIMS
O.R.C. §2307.82(B) “No court in this state
has jurisdiction over a claim brought by or
on behalf of an illegal alien or an
unauthorized alien for damages suffered by
reason of personal injury sustained or
occupational disease contracted by the
illegal alien or unauthorized alien in the
course of employment caused by the
wrongful act or omission or neglect of the
employer.”
PERSON
AL
INJURY
CLAIMS
O.R.C. §2307.82(C) Gives Ohio courts
jurisdiction over personal injury actions only
if:
 The person bringing the claim establishes, “by clear
and convincing evidence”, that the employer hired
the person knowing that he or she was not
authorized to work under section 101(a) of the
“Immigration Reform and Control Act of 1986”
 There is a rebuttable presumption that an employer
did not hire a person knowing the person was an
illegal alien or unauthorized alien if the employer
has complied with the requirements of section
101(a) of the “Immigration Reform and Control Act
of 1986”
THE IMMIGRATION REFORM
AND CONTROL ACT OF 1986
(“IRCA”)
THE
IMMIGRATI
ON
REFORM
AND
CONTROL
ACT OF
1986
(“IRCA”)
Every employer (including of a single
employee) is barred from:
 (i) knowingly hiring an alien who is not authorized
to be employed in the United States;
 (ii) continuing to employ an alien knowing that he or
she has become unauthorized; and
 (iii) hiring any person without complying with the
required record-keeping procedures.
FORM I-9, EMPLOYMENT
ELIGIBILITY VERIFICATION
All employers must complete and
retain Form I-9, Employment
Eligibility Verification, for every
person they hire for employment in
the U.S. as long as the person works
for pay or other type of payment.
The I-9 requirement applies to
domestic workers who perform child
care, household tasks, and/or
upkeep of a home or surrounding
yard on a regular basis in return for
wages or other benefits.
WHO IS AFFECTED?
The employment
verification rules
apply to every
employer no
matter the
number of its
employees.
The employment
verification rules do
not apply to
independent
contractors
WHAT ARE THE
EMPLOYMENT
VERIFICATION
PROCEDURES?Employment verification is done on Form I-9.
 Form I-9 contains a certification by the employer that it has
inspected the required documents provided by the employee to
establish her identity and authorization to be employed and that
they appear to be genuine on their face
 The employee affirms that she is a United States citizen, permanent
resident or is authorized to work in the United States.
WHAT
DOCUMENT
S CAN THE
EMPLOYEE
PROVIDE TO
COMPLY
WITH THE
EMPLOYME
NT
VERIFICATI
ON
PROCEDUR
ES?
The employee can provide either:
 a single document that establishes both his or her
identity and authorization to be employed, such as a
U.S. Passport; or alternatively
 two documents, one to establish his or her identity
(such as a Drivers License) and the second to
establish his authorization to be employed (such as
a Social Security Card).
WHAT ARE
THE
EMPLOYE
R’S
OBLIGATI
ONS?
The employer’s obligation as set forth on the Form I-9 is to
confirm that the documents provided (i) relate to the employee
and (ii) appear to be genuine.
 The employer is not required to become an expert on the genuineness of government
documents but is expected to note obvious flaws (such as, for instance, a Social
Security Card with fewer than a 9 digit Social Security Number).
The employer must complete the Form I-9 within 3 days of the
date on which an employee is hired and must retain the Form I-9
for the later of 3 years or one year after the termination of the
employee’s employment.
Where the employee’s employment authorization will expire by
its own terms, the employer is obligated to update and re-verify
the employee’s employment authorization document on the
Form I-9.
The employer may, but is not required to, make copies of the
documents submitted and attach them to the Form I-9 for
record-keeping purposes.
WHAT ARE THE PENALTIES FOR
FAILING TO COMPLY WITH THE
IRCA RULES?
The civil penalty imposed on the employer for failing to comply with the
recordkeeping requirements can be $100 to $1,000 per paperwork violation.
The civil penalty imposed on the employer for knowingly hiring or continuing to
employ an unauthorized foreign national can be $200 to $2,000 for a first
offense and $200 to $5,000 for each offense thereafter.
If the employer engages in a pattern or practice of violating the employer
sanction provisions, the employer can be subjected to a criminal penalty of up to
$3,000 for each unauthorized employee and be imprisoned for up to six months.
THE OHIO WORKERS FIRST
ACT-WORKERS’
COMPENSATION BENEFITS
Power point presentation hb 380 v10
THE OHIO WORKERS FIRST
ACT
WORKERS’ COMPENSATION
BENEFITS
O.R.C. § 4123.01(A)(2)(f) an employee does not
include “An illegal alien or unauthorized alien.”
O.R.C. §4123.01(A)(1)(b) Employee includes
aliens “authorized to work by the United States
department of homeland security or its
successors”
O.R. C. §4123.01(O):“’Illegal alien’ means an alien who is deportable if
apprehended because of one of the following:
 (1) the alien entered the United States illegally without the proper
authorization and documents;
 (2) the alien once entered the United States legally and has since violated
the terms of the status under which the alien entered the United States,
making that alien an “out of status” alien;
 (3) The alien once entered the United States legally but has overstayed the
time limits of the original legal status.
O.R.C. §4123.01(P): “Unauthorized alien” means an alien who is not
authorized to be employed as determined in accordance with section 101(a)
of the “Immigration Reform and Control Act of 1986”
THE OHIO WORKERS FIRST ACT
WORKERS’ COMPENSATION BENEFITS
O.R.C. §4123.51
 Requires that the First Report of Injury be amended to include:
 A place for the claimant to state whether the claimant is a
citizen of the United States;
 A place for a claimant who is not a citizen of the United
States to provide:
 The claimant’s “alien registration number” or other identifier
showing authorization to work in the U.S.;
 A place for a dependent of a non-citizen to provide the
above identifying information for the decedent.
THE OHIO WORKERS FIRST ACT
WORKERS’ COMPENSATION
BENEFITSO.R.C. §4123.513
 Except where the employer was aware that the worker was undocumented at the
time of hire, there is an irrebuttable presumption that the undocumented worker
assumed the risk of incurring an injury or occupational disease at the workplace.
 Provides that the employer is liable for damages to an undocumented worker if the
worker establishes, by clear and convincing evidence, that the employer knew the
worker was undocumented at the time of hire.
 There is a rebuttable presumption that the employer did not hire the individual knowing that
he or she was undocumented if the employer complied with the IRCA
 In such an action, an employer may not assert any of the common law defenses listed in
O.R.C. §4123.77
 Fellow servant rule
 Assumption of risk
 Contributory negligence
 Undocumented workers retain the right to bring an action for an intentional tort.
THE OHIO WORKERS FIRST
ACT
WORKERS’ COMPENSATION
BENEFITSO.R.C. 4123.59(E)
The statute, as amended, would preserve the right of
a United States Citizen, who is a dependent of an
undocumented worker, to receive death benefits
THE OHIO WORKERS FIRST ACT
INTENTIONAL TORTS
Power point presentation hb 380 v10
THE OHIO WORKERS FIRST
ACT INTENTIONAL TORT
O.R.C. §2307.82(C) “Nothing in this section
shall be construed to prevent an illegal alien or
unauthorized alien from bringing a claim
against an employer in a court of competent
jurisdiction for an intentional tort allegedly
committed by the employer against the illegal
alien or unauthorized alien.”
HOW DO OTHER STATES
DEAL WITH THIS ISSUE?
Power point presentation hb 380 v10
HOW DO OTHER STATES
DEAL WITH THIS ISSUE?
HOW DO OTHER STATES DEAL WITH
THIS ISSUE?
SOURCE-ABA WORKERS’ COMPENSATION SECTION 2017 MIDWINTER SEMINAR
California and Virginia extend benefits to undocumented workers by statute
 California has an estimated 2,350,000 undocumented workers (the most in
the United States) (9% of workforce); Virginia has 300,000 (10th)(5% of
workforce)
Wyoming and Idaho exclude undocumented workers from receiving benefits
by statute
 Idaho has an estimated 45,000 undocumented workers (36th in the
country)(4% of workforce); Wyoming has 5,000 (45th) (1.4%) (per a 2014
study from the Pew Research Center)
Common law in Alabama, Arizona, Connecticut, Colorado, Delaware, Florida,
Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland,
Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New
Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon,
Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin makes
undocumented workers eligible for benefits
 Although the courts have not ruled on the issue, the Arkansas Industrial
Commission considers undocumented workers to be employees
0 10 20 30 40 50
Allow All Benefits
Pay Medical Bills Only
Pay Limited Indemnity…
No Benefits
Undecided
Workers’ Compensation Benefits for Undocumented Workers
in Other States
Source-ABA Workers’ Compensation Section 2017 Midwinter Seminar
VIRGINIA’S EXPERIENCE
In 1999 the Virginia Supreme Court held that undocumented workers
were not entitled to workers’ compensation benefits
In 2000, in response largely to concerns from employers about their
increased exposure to personal injury actions, the Virginia Legislature
passed a law that covered undocumented workers under the workers
compensation system. Undocumented workers are not entitled to
vocational rehabilitation benefits in Virginia.
PROS AND CONS OF THE
OHIO WORKERS FIRST ACT
Potential Benefits of the
Ohio Workers First Act
PROVIDES A DISINCENTIVE TO EMPLOYERS
WHO KNOWINGLY HIRE UNDOCUMENTED
WORKERS
 Undocumented workers are often deliberately underpaid, which depresses wages in
certain occupations and regions. Eliminating undocumented workers would
increase Ohio wages.
 When the supply of workers goes up, the price that firms have to pay to hire
workers goes down. Wage trends over the past half-century suggest that a 10
percent increase in the number of workers with a particular set of skills probably
lowers the wage of that group by at least 3 percent. Because a disproportionate
percentage of immigrants have few skills, it is low-skilled American workers,
including many blacks and Hispanics, who have suffered most from this wage dip.
(Source-George J. Borjas, PhD, Robert W. Scrivner Professor of Economics and Social Policy
at Harvard University, "Yes, Immigration Hurts American Workers“, politico.com, Sep./Oct.
2016)
 In 2016 the median usual weekly earnings of foreign-born full-time wage and salary
workers ($715) were 83.1 percent of the earnings of their native-born counterparts
($860). Among men, median weekly earnings for the foreign born ($751) were 79.0
percent of the earnings of the native born ($951). Median earnings for foreign-born
women ($655) were 86.0 percent of the earnings of their native-born counterparts
($762). (Source-Bureau of Labor Statistics)
 A decade ago, Crider Inc., a chicken processing plant in Georgia, was raided by
immigration agents, and 75 percent of its workforce vanished over a single
weekend. Shortly after, Crider placed an ad in the local newspaper announcing job
openings at higher wages.
PROVIDES A DISINCENTIVE TO EMPLOYERS
WHO KNOWINGLY HIRE UNDOCUMENTED
WORKERS
Employers who hire undocumented workers
don’t offer safe workplaces. As a result,
immigrant workers suffer a disproportionately
high rate of work-related fatalities. (Source-How
Undocumented Status Impacts the Working Conditions and Safety of Latino Immigrants, Roger
Rabb, J.D., Special Correspondent for the LexisNexis Workers’ Compensation eNewsletter, 09-
14-2015)
PROVIDES A DISINCENTIVE TO ILLEGAL
IMMIGRATION TO OHIO DUE TO THE
UNAVAILABILITY OF WORK
Undocumented workers and their families receive
more in government benefits than they pay in taxes.
 In 2013, think tank The Heritage Foundation released a study concluding
that as of 2010, the average unlawful immigrant household has a net
deficit (benefits received minus taxes paid) of $14,387 per household.[
(Source- Cost of Unlawful Immigrants to the U.S. Taxpayers". Heritage.org. 2013-05-06.)
PROVIDES A DISINCENTIVE TO ILLEGAL
IMMIGRATION TO OHIO DUE TO THE
UNAVAILABILITY OF WORK
 Availability of employment for undocumented workers provides an
incentive for illegal immigration, which weakens U.S. border security, and
leads to a greater threat of terrorism, drugs and other negative influences
from outside the country. (Source- James A. Lyons, Retired Admiral, Former
Commander in Chief of the US Pacific Fleet, and Senior US Military Representative to
the United Nations, "LYONS: The National Security Component of Immigration
Reform" Washington Times website, Aug. 14, 2013)
 There is no evidence that immigrants commit more crimes than U.S. citizens.
However, illegally emigrating from one country to another does involve a network
of criminal activity. Criminal organizations promising to help immigrants illegally
move between countries often engage in human trafficking, drug running and
other crimes. (Source-Michael McDonald, PhD, Assistant Professor in Finance at
Fairfield University, "10 Ways Illegal Immigration Affects You Financially”)
PROVIDES A DISINCENTIVE TO ILLEGAL
IMMIGRATION TO OHIO DUE TO THE
UNAVAILABILITY OF WORK
Illegal immigrants can put a financial burden on local and federal law
enforcement
 Costs associated with law enforcement, border security and crimes including
human smuggling.
 According to the National Review, U.S. taxpayers paid about $1.9 billion to house
imprisoned illegal immigrants in fiscal year 2014 and almost all of that financial
burden was shouldered by the states. It cited a study of state and federal data.
PROVIDES A DISINCENTIVE TO ILLEGAL
IMMIGRATION TO OHIO DUE TO THE
UNAVAILABILITY OF WORK
Immigrants on average tend to have larger families that those
in the U.S. This difference can strain the resources of local
school districts. (Source-Michael McDonald, PhD, Assistant Professor in Finance
at Fairfield University, "10 Ways Illegal Immigration Affects You Financially”)
PROTECTS EMPLOYERS WHO COMPLY WITH
IRCA
Protects employers who comply with IRCA from
both workers’ compensation claims and
personal injury actions by employees who
mislead the employer about their immigration
status
Provides an additional incentive to employers
to comply with U.S. immigration laws
PRESERVES JOBS FOR THOSE WHO ARE IN
OHIO LEGALLY
 Of the 465 civilian occupations, only four are majority immigrant. These
four occupations account for less than 1 percent of the total U.S.
workforce.
 Moreover, native-born Americans comprise 47 percent of workers in
these occupations.
 Many jobs often thought to be overwhelmingly immigrant are in fact
majority native-born:
 Maids and housekeepers: 55 percent native-born
 Taxi drivers and chauffeurs: 58 percent native-born
 Butchers and meat processors: 63 percent native-born
 Grounds maintenance workers: 65 percent native-born
 Construction laborers: 65 percent native-born
 Porters, bellhops, and concierges: 71 percent native-born
 Janitors: 75 percent native-born
 (Source-Jobs Americans Won’t Do? A Detailed Look at Immigrant Employment by Occupation, Steven A.
Camarota and Karen Zeigler, Center for Immigration Studies, August 17, 2009)
Potential Negative Effects
of the Ohio Workers First
Act
OPENS EMPLOYERS TO THE
POSSIBILITY OF PERSONAL INJURY
ACTIONS ARISING FROM
WORKPLACE INJURIES
The question of whether there is “clear and
convincing evidence” of employer knowledge is
a question for the trier of fact if the rebuttable
presumption does not apply
The Virginia legislature specifically included
undocumented workers under the definition of
“employee” due to employer concerns
surrounding that issue.
Power point presentation hb 380 v10
HYPOTHETICALS
SMALLER EMPLOYERS
An individual hires a household worker, a baby sitter, or a lawn care
professional on the recommendation of a friend
That person earns more than $160 per calendar quarter
 With respect to the household worker that alone would constitute an employee
under the terms of O.R.C. 4123.01(A)(1)(b)
 With respect to the lawn care professional, assume that the working arrangement is
sufficiently under the employer’s control to defeat the independent contractor test
The employer does not fill out an 1-9 form; does not
request any employment documentation; and does not
question the fact that the employee insists on being
paid in cash
Based upon what they’ve heard from the friend who
recommended the worker, the employer knows that
the worker’s immigration is, at the very least,
questionable
The employee is injured in a situation in which the
employer could be found to have been negligent
Because the employer did not comply with the IRCA,
the rebuttable presumption that the employer did not
knowingly hire an undocumented worker does not
apply
Absent the rebuttable presumption, there is the
possibility of a personal injury lawsuit going to trial,
without the employer having the protections afforded
by the workers’ compensation act
Whether the employee can provide “clear and
convincing evidence” that the employer knew about
their undocumented status is a question for the trier
MANY WELL KNOW PEOPLE
HAVE HIRED
UNDOCUMENTED WORKERS
Lou Dobbs (who knowingly had undocumented workers in his stables)
Lorraine Henderson, former Boston Regional Director for Homeland
Security (who had three undocumented domestic workers)
Linda Chavez (the first Latina ever nominated for a White House
Cabinet position who, when it was disclosed that she had an
undocumented domestic worker, admitted “I think I always knew”)
IT’S NOT JUST SMALL
EMPLOYERS
In September of 2017, Asplundh Tree Expert Co., one of the largest
privately held corporations in the nation, was ordered to pay $95
million in penalties for employing people in the United States illegally.
Asplundh employed thousands of undocumented workers between
2010 and 2014 with its top management remaining "willfully blind"
while lower-level supervisors hired people they knew were in the
country illegally to maximize profit.
In 1998, Donald J. Trump’s company settled a lawsuit which
alleged that in 1980 it employed a crew of 200 undocumented
Polish workers to demolish the Bonwit Teller building on Fifth
Avenue, where the Trump Tower now stands.
President Trump has testified that he was unaware of the
workers’ undocumented status, and that the hiring was done
through a subcontractor. The case never went to trial.
COULD A WELL-INTENTIONED LARGER
EMPLOYER LOSE ITS WORKERS’ COMPENSATION
IMMUNITY?
An employer could overlook an arguably “noticeable flaw” in the
employee’s paperwork
An employer could fail to complete the I-9 paperwork within the 3
days required by the IRCA
An employer could fail to maintain the documents for three years, or
fail to re-certify when necessary.
In either of those situations, the employer would no longer meet the
requirement of the rebuttable presumption that the employer “has
complied with” the requirements of IRCA
WHAT’S AT STAKE?
A WYOMING EXAMPLE
In 2012, in the case of Romero v. Reiman Corp., in the U.S. District
Court of Wyoming, a jury awarded $1,000,000 in damages to a
worker who fell 10 feet onto a slab of concrete.
Romero sustained a broken wrist and a herniated lumbar disc.
As an illegal immigrant, Romero was not an “employee” under
Wyoming’s workers’ compensation law. Accordingly, workers’
compensation immunity did not apply.
In 2014, in the case of Herrera v. Phillips, 2014 WY 118, 2014 Wyo.
LEXIS 135, the Wyoming Supreme Court again found that an
undocumented worker could sue his employer in tort.
The employer did not have a properly completed I-9 form in the
worker’s personnel file. The worker also testified that the supervisor
who drove him to the hospital after the injury asked, “You’re illegal,
aren’t you?”
The Wyoming Supreme Court said there was conflicting evidence as
to whether the employer had a reasonable basis to believe that the
worker was authorized to work. Accordingly, summary judgment was
improper.
The court said that at trial, the fact finder must determine whether
the employer had a reasonable belief, based on documentation in its
possession, that the worker was authorized to work in the United
PROVIDES AN INCENTIVE FOR
UNSCRUPULOUS EMPLOYERS TO HIRE
UNDOCUMENTED WORKERS
“Since undocumented workers will no longer be able to file a
claim when injured on the job, this bill will encourage
employers to hire non-citizens.” Rep. David Leland (D-
Columbus).
“HB 380 incentivizes illegal employers who put profit first to
look the other way when hiring undocumented workers,” said
Rep. Tavia Galonski (D-Akron).
The data from the two states that bar undocumented workers
from receiving benefits is a mixed bag. Although both states
have relatively low overall numbers of undocumented workers,
in Idaho undocumented workers make up 4% of the workforce,
one of the higher rates in the country. In Wyoming, however,
undocumented workers make up only 1.4% of the workforce.
IMPROPERLY SHIFTS THE COSTS OF
INJURIES SUSTAINED BY UNDOCUMENTED
WORKERS ONTO SOCIETY AS A WHOLE
 Emergency Room visits lead to increased insurance premiums
 Medical costs specifically for uninsured illegal immigrants are
estimated at $4.3 billion per year, according to the Center for
Immigration Studies, primarily due to the use of emergency
rooms and free clinics.
 Undocumented immigrants are eligible for emergency
Medicaid if they are otherwise eligible for their state’s
Medicaid program
 The cost of treating illegal immigrants amounts to nearly $11
billion a year, according to calculations done by the
Federation for American Immigration Reform (FAIR), a non-
profit group that opposes illegal immigration.
REMOVING UNDOCUMENTED WORKERS
FROM THE LABOR POOL WOULD HAVE
NEGATIVE ECONOMIC IMPACTS
 Social Security’s “No-Match” program
 According to estimates from the Pew Hispanic Center, 60% of
undocumented workers are in formal employment and are paying
Social Security taxes
 When an employer completes an I-9 form with an incorrect social
security number, the Social Security Administration sends the
employer a “no-match” letter. As of 2003, there were 255 million
wage items totaling $519.6 billion showing up as “no-match” in
“suspense files”. This money will remain in the Social Security
Fund
 State and Local Taxes-According to a study from the Institute on
Taxation and Economic Policy, undocumented workers paid $72
million in Ohio state and local income taxes in 2010
Power point presentation hb 380 v10
REMOVING UNDOCUMENTED WORKERS
FROM THE LABOR POOL WOULD HAVE
NEGATIVE ECONOMIC IMPACTSUndocumented workers do not take jobs away from legal U.S. residents
 "It might seem intuitive that when there is an increase in the supply of
workers, the ones who were here already will make less money or lose their
jobs. Immigrants [documented and undocumented] don't just increase the
supply of labor, though; they simultaneously increase demand for it, using
the wages they earn to rent apartments, eat food, get haircuts, buy
cellphones. (Source-Adam Davidson, International Business and Economics Correspondent
at National Public Radio (NPR) "Debunking the Myth of the Job-Stealing Immigrant“,
nytimes.com, Mar. 24, 2015)
 That means there are more jobs building apartments, selling food, giving
haircuts and dispatching the trucks that move those phones. Immigrants
increase the size of the overall population, which means they increase the
size of the economy. Logically, if immigrants were 'stealing' jobs, so would
every young person leaving school and entering the job market; countries
should become poorer as they get larger. In reality, of course, the opposite
happens."
REMOVING UNDOCUMENTED WORKERS
FROM THE LABOR POOL WOULD HAVE
NEGATIVE ECONOMIC IMPACTS
Undocumented workers perform jobs that American
workers won’t
According to a case study done in North Carolina in
2011, 489,000 people were unemployed statewide.
The North Carolina Growers Association listed 6,500
available jobs. Just 268 of those 489,000 North
Carolinians applied, and 245 were hired. On the first
day of work, 163 showed up, and a grand total of
seven finished the season. Of the mostly Mexican
workers who took the rest of the jobs, 90 percent
made it through to the end. (Source- A Case Study of How Foreign
Workers Help American Farms Grow Crops – and the Economy, Michael A. Clemens, MAY 2013)
UNDOCUMENTED WORKERS DO NOT MAKE
THE U.S. LESS SAFE
Between 1990 and 2013, the foreign-born share of the
U.S. population grew from 7.9 percent to 13.1 percent and
the number of unauthorized immigrants more than tripled
from 3.5 million to 11.2 million.
During the same period, FBI data indicate that the violent
crime rate declined 48 percent—which included falling
rates of aggravated assault, robbery, rape, and murder.
Likewise, the property crime rate fell 41 percent, including
declining rates of motor vehicle theft, larceny/robbery, and
burglary.
(Source- Walter A. Ewing, PhD, Senior Researcher at the American Immigration Council, Daniel E.
Martinez, PhD, Assistant Professor in the Department of Sociology at The George Washington
University, Ruben G. Rumbaut, PhD, Distinguished Professor of Sociology at the University of California
at Irvine, "The Criminalization of Immigration in the United States“, American Immigration Council
website, July 13, 2015)
CONSTITUTIONAL
QUESTIONS
Because the bill limits remedies for undocumented
workers who sustain an injury/occupational disease at
work, it may raise questions under the Ohio
constitutional provisions governing:
Due Process
The right to an open court
The right to a remedy
INTERESTING FACTS ABOUT
IMMIGRATION
Power point presentation hb 380 v10
Power point presentation hb 380 v10
Power point presentation hb 380 v10
Power point presentation hb 380 v10
Visiting Washington in 1979 during a time when the United States
was urging the Soviet Union to allow more Jews to emigrate to the
U.S., the Chinese leader Deng Xiaoping, according to Jimmy Carter's
memoirs, told the American president: "If you want me to release ten
million Chinese to come to the United States I'd be glad to do that."
An estimated 40 to 50 percent of illegal immigrants residing in the
United States did not illegally cross the border. Instead, they obtained
legal visas as employees, students, or tourists and did not return
home when their visas expired.[11]
11Miller, Debra A. Illegal Immigration. San Diego, CA: ReferencePoint
Press, Inc., 2007.
About 60 percent of immigrants currently residing in the United
States arrived before 2000.
1CAP Immigration Team. “The Facts on Immigration Today.” Center
for American Progress. Updated October 23, 2014. Accessed: October
20, 2016.
The six American Nobel Prize winners of 2016 in the areas of
chemistry, physics, and economics are all immigrants.[4
4Feliz, Wendy. “Six of America’s 2016 Nobel Laureates are
Immigrants.” Immigration Impact. October 11, 2016. Accessed:
October 29, 2016.
Shortly after the adoption of the Constitution, a proposal was made
to print all federal laws in German as well as English because of the
large number of German immigrants. One vote in the House of
Representatives defeated the proposal.[
14Wepman, Dennis. Immigration. New York, NY: Facts On File, Inc.,
2008
An estimated 40 percent of all Americans have an ancestor who
arrived in the United States through Ellis Island.
11Miller, Debra A. Illegal Immigration. San Diego, CA: ReferencePoint
Press, Inc., 2007
In 1819, Congress passed a law requiring that the names, ages, and
occupations of all arrivals into the United States be recorded. This law
is considered the first significant legislation on immigration made by
the federal government.[14
14Wepman, Dennis. Immigration. New York, NY: Facts On File, Inc.,
2008
Undocumented immigrants often do the cleanup work after a disaster
like Hurricane Katrina or Hurricane Ike. Some 100,000 Hispanics
moved into the Gulf Coast after Katrina—half were undocumented.
Source- 10 Facts You Didn’t Know about Immigration and the
Undocumented, Avit Chomsky, Broadside Press, May 23, 2014
WHAT DO PEOPLE IN THE INDUSTRY THINK
ABOUT THIS ISSUE?
SHOULD UNDOCUMENTED WORKERS
BE DENIED WORKERS’ COMPENSATION
BENEFITS?SOURCE: WORKERSCOMPENSATION.COM
SHOULD INJURED WORKERS FOUND TO BE
USING FALSE DOCUMENTATION BE
DEPORTED?
SHOULD BENEFITS CONTINUE AFTER AN
INJURED WORKER IS DEPORTED?

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Power point presentation hb 380 v10

  • 1. THE OHIO WORKERS FIRST ACT HOUSE BILL 380 Legislation Barring Undocumented Workers from Receiving Workers’ Compensation Benefits
  • 3. THE CURRENT STATE OF OHIO LAW REGARDING UNDOCUMENTED WORKERS O.R.C. §4123.01(A)(1)(b) “Employee” includes “aliens and minors, household workers who earn one hundred sixty dollars or more in cash in any calendar quarter from a single household from a single employer.” Even when an injured worker is subject to deportation, he or she is an employee under that definition. Rajeh v. Steel City Corp., 157 Ohio App.3d 722, 2004 Ohio 3211. The court held that if the legislature intended to bar illegal aliens from receiving benefits it would have done so, as it did in the case of the statute authorizing unemployment benefits.
  • 4. OHIO HOUSE BILL 380 Passed by the Ohio House on December 6, 2017 by a vote of 62-30 Enacts Sections 2307.82 and 4123.513 and amends Sections 2743.02, 2744.02, 4123.01, 4123.51, and 4123.59 to:  “prohibit illegal and unauthorized aliens from receiving compensation and…benefits under Ohio’s Workers’ Compensation Law”
  • 6. WHY SHOULD WE CARE? Creates an additional possibility for personal injury suits to arise out of workplace injuries Limits the number of potential workers’ compensation claims  The BWC does not maintain data on the number of claims filed by undocumented workers and the legislative service commission could not estimate how much the law would reduce overall benefit payments Raises the question of how Ohio should deal with the issue of workers’ compensation benefits to undocumented workers  Raises societal questions about undocumented workers in general
  • 7. IS THIS REALLY A BIG ISSUE?
  • 8. IS THIS REALLY A BIG ISSUE? According to an estimate from the Pew Research Center in 2014, there are about 95,000 undocumented workers in Ohio That is the 24th largest undocumented population of any state in the country
  • 10. 5 STATES WITH 500,000- 2,350,000 UNDOCUMENTED WORKERS
  • 11. 12 STATES WITH 180,000 TO 450,000 UNDOCUMENTED WORKERS
  • 12. 8 STATES WITH 100,000 TO 130,000 UNDOCUMENTED WORKERS
  • 13. 18 STATES WITH 25,000- 95,000 UNDOCUMENTED WORKERS
  • 14. UNDOCUMENTED IMMIGRANTS CONSTITUTE AN ESTIMATED 1.1% OF OHIO’S WORKFORCE
  • 15. IN SEVERAL OCCUPATIONS UNDOCUMENTED WORKERS ACCOUNT FOR 15% OR MORE OF THE TOTAL WORKFORCE Farming, Fishing and Forestry (26%) Domestic Workers (22%) Building/Grounds Cleaning and Maintenance (16%)  Construction (15%)  (Source-Immigrants don’t make up a majority of workers in any U.S. industry, Pew Research Center, March 14, 2017)
  • 19. WHAT WOULD THE OHIO WORKERS FIRST ACT DO?
  • 20. The Act would enact O.R.C. §2307.82, which limits personal injury actions by undocumented workers to instances where the employer knew the injured worker was not authorized to work 01 The Act would revise O.R.C. §4123.01 to make undocumented workers ineligible to receive workers compensation benefits United Citizens who are dependents of undocumented workers would have the right to death benefits 02 The Act would still allow undocumented workers to sue employers for an intentional tort 03
  • 21. THE OHIO WORKERS FIRST ACT: PERSONAL INJURY CLAIMS
  • 22. THE OHIO WORKER S FIRST ACT: PERSON AL INJURY CLAIMS O.R.C. §2307.82(B) “No court in this state has jurisdiction over a claim brought by or on behalf of an illegal alien or an unauthorized alien for damages suffered by reason of personal injury sustained or occupational disease contracted by the illegal alien or unauthorized alien in the course of employment caused by the wrongful act or omission or neglect of the employer.”
  • 23. PERSON AL INJURY CLAIMS O.R.C. §2307.82(C) Gives Ohio courts jurisdiction over personal injury actions only if:  The person bringing the claim establishes, “by clear and convincing evidence”, that the employer hired the person knowing that he or she was not authorized to work under section 101(a) of the “Immigration Reform and Control Act of 1986”  There is a rebuttable presumption that an employer did not hire a person knowing the person was an illegal alien or unauthorized alien if the employer has complied with the requirements of section 101(a) of the “Immigration Reform and Control Act of 1986”
  • 24. THE IMMIGRATION REFORM AND CONTROL ACT OF 1986 (“IRCA”)
  • 25. THE IMMIGRATI ON REFORM AND CONTROL ACT OF 1986 (“IRCA”) Every employer (including of a single employee) is barred from:  (i) knowingly hiring an alien who is not authorized to be employed in the United States;  (ii) continuing to employ an alien knowing that he or she has become unauthorized; and  (iii) hiring any person without complying with the required record-keeping procedures.
  • 26. FORM I-9, EMPLOYMENT ELIGIBILITY VERIFICATION All employers must complete and retain Form I-9, Employment Eligibility Verification, for every person they hire for employment in the U.S. as long as the person works for pay or other type of payment. The I-9 requirement applies to domestic workers who perform child care, household tasks, and/or upkeep of a home or surrounding yard on a regular basis in return for wages or other benefits.
  • 27. WHO IS AFFECTED? The employment verification rules apply to every employer no matter the number of its employees. The employment verification rules do not apply to independent contractors
  • 28. WHAT ARE THE EMPLOYMENT VERIFICATION PROCEDURES?Employment verification is done on Form I-9.  Form I-9 contains a certification by the employer that it has inspected the required documents provided by the employee to establish her identity and authorization to be employed and that they appear to be genuine on their face  The employee affirms that she is a United States citizen, permanent resident or is authorized to work in the United States.
  • 29. WHAT DOCUMENT S CAN THE EMPLOYEE PROVIDE TO COMPLY WITH THE EMPLOYME NT VERIFICATI ON PROCEDUR ES? The employee can provide either:  a single document that establishes both his or her identity and authorization to be employed, such as a U.S. Passport; or alternatively  two documents, one to establish his or her identity (such as a Drivers License) and the second to establish his authorization to be employed (such as a Social Security Card).
  • 30. WHAT ARE THE EMPLOYE R’S OBLIGATI ONS? The employer’s obligation as set forth on the Form I-9 is to confirm that the documents provided (i) relate to the employee and (ii) appear to be genuine.  The employer is not required to become an expert on the genuineness of government documents but is expected to note obvious flaws (such as, for instance, a Social Security Card with fewer than a 9 digit Social Security Number). The employer must complete the Form I-9 within 3 days of the date on which an employee is hired and must retain the Form I-9 for the later of 3 years or one year after the termination of the employee’s employment. Where the employee’s employment authorization will expire by its own terms, the employer is obligated to update and re-verify the employee’s employment authorization document on the Form I-9. The employer may, but is not required to, make copies of the documents submitted and attach them to the Form I-9 for record-keeping purposes.
  • 31. WHAT ARE THE PENALTIES FOR FAILING TO COMPLY WITH THE IRCA RULES? The civil penalty imposed on the employer for failing to comply with the recordkeeping requirements can be $100 to $1,000 per paperwork violation. The civil penalty imposed on the employer for knowingly hiring or continuing to employ an unauthorized foreign national can be $200 to $2,000 for a first offense and $200 to $5,000 for each offense thereafter. If the employer engages in a pattern or practice of violating the employer sanction provisions, the employer can be subjected to a criminal penalty of up to $3,000 for each unauthorized employee and be imprisoned for up to six months.
  • 32. THE OHIO WORKERS FIRST ACT-WORKERS’ COMPENSATION BENEFITS
  • 34. THE OHIO WORKERS FIRST ACT WORKERS’ COMPENSATION BENEFITS O.R.C. § 4123.01(A)(2)(f) an employee does not include “An illegal alien or unauthorized alien.” O.R.C. §4123.01(A)(1)(b) Employee includes aliens “authorized to work by the United States department of homeland security or its successors”
  • 35. O.R. C. §4123.01(O):“’Illegal alien’ means an alien who is deportable if apprehended because of one of the following:  (1) the alien entered the United States illegally without the proper authorization and documents;  (2) the alien once entered the United States legally and has since violated the terms of the status under which the alien entered the United States, making that alien an “out of status” alien;  (3) The alien once entered the United States legally but has overstayed the time limits of the original legal status. O.R.C. §4123.01(P): “Unauthorized alien” means an alien who is not authorized to be employed as determined in accordance with section 101(a) of the “Immigration Reform and Control Act of 1986”
  • 36. THE OHIO WORKERS FIRST ACT WORKERS’ COMPENSATION BENEFITS O.R.C. §4123.51  Requires that the First Report of Injury be amended to include:  A place for the claimant to state whether the claimant is a citizen of the United States;  A place for a claimant who is not a citizen of the United States to provide:  The claimant’s “alien registration number” or other identifier showing authorization to work in the U.S.;  A place for a dependent of a non-citizen to provide the above identifying information for the decedent.
  • 37. THE OHIO WORKERS FIRST ACT WORKERS’ COMPENSATION BENEFITSO.R.C. §4123.513  Except where the employer was aware that the worker was undocumented at the time of hire, there is an irrebuttable presumption that the undocumented worker assumed the risk of incurring an injury or occupational disease at the workplace.  Provides that the employer is liable for damages to an undocumented worker if the worker establishes, by clear and convincing evidence, that the employer knew the worker was undocumented at the time of hire.  There is a rebuttable presumption that the employer did not hire the individual knowing that he or she was undocumented if the employer complied with the IRCA  In such an action, an employer may not assert any of the common law defenses listed in O.R.C. §4123.77  Fellow servant rule  Assumption of risk  Contributory negligence  Undocumented workers retain the right to bring an action for an intentional tort.
  • 38. THE OHIO WORKERS FIRST ACT WORKERS’ COMPENSATION BENEFITSO.R.C. 4123.59(E) The statute, as amended, would preserve the right of a United States Citizen, who is a dependent of an undocumented worker, to receive death benefits
  • 39. THE OHIO WORKERS FIRST ACT INTENTIONAL TORTS
  • 41. THE OHIO WORKERS FIRST ACT INTENTIONAL TORT O.R.C. §2307.82(C) “Nothing in this section shall be construed to prevent an illegal alien or unauthorized alien from bringing a claim against an employer in a court of competent jurisdiction for an intentional tort allegedly committed by the employer against the illegal alien or unauthorized alien.”
  • 42. HOW DO OTHER STATES DEAL WITH THIS ISSUE?
  • 44. HOW DO OTHER STATES DEAL WITH THIS ISSUE?
  • 45. HOW DO OTHER STATES DEAL WITH THIS ISSUE? SOURCE-ABA WORKERS’ COMPENSATION SECTION 2017 MIDWINTER SEMINAR California and Virginia extend benefits to undocumented workers by statute  California has an estimated 2,350,000 undocumented workers (the most in the United States) (9% of workforce); Virginia has 300,000 (10th)(5% of workforce) Wyoming and Idaho exclude undocumented workers from receiving benefits by statute  Idaho has an estimated 45,000 undocumented workers (36th in the country)(4% of workforce); Wyoming has 5,000 (45th) (1.4%) (per a 2014 study from the Pew Research Center) Common law in Alabama, Arizona, Connecticut, Colorado, Delaware, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin makes undocumented workers eligible for benefits  Although the courts have not ruled on the issue, the Arkansas Industrial Commission considers undocumented workers to be employees
  • 46. 0 10 20 30 40 50 Allow All Benefits Pay Medical Bills Only Pay Limited Indemnity… No Benefits Undecided Workers’ Compensation Benefits for Undocumented Workers in Other States Source-ABA Workers’ Compensation Section 2017 Midwinter Seminar
  • 47. VIRGINIA’S EXPERIENCE In 1999 the Virginia Supreme Court held that undocumented workers were not entitled to workers’ compensation benefits In 2000, in response largely to concerns from employers about their increased exposure to personal injury actions, the Virginia Legislature passed a law that covered undocumented workers under the workers compensation system. Undocumented workers are not entitled to vocational rehabilitation benefits in Virginia.
  • 48. PROS AND CONS OF THE OHIO WORKERS FIRST ACT
  • 49. Potential Benefits of the Ohio Workers First Act
  • 50. PROVIDES A DISINCENTIVE TO EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS  Undocumented workers are often deliberately underpaid, which depresses wages in certain occupations and regions. Eliminating undocumented workers would increase Ohio wages.  When the supply of workers goes up, the price that firms have to pay to hire workers goes down. Wage trends over the past half-century suggest that a 10 percent increase in the number of workers with a particular set of skills probably lowers the wage of that group by at least 3 percent. Because a disproportionate percentage of immigrants have few skills, it is low-skilled American workers, including many blacks and Hispanics, who have suffered most from this wage dip. (Source-George J. Borjas, PhD, Robert W. Scrivner Professor of Economics and Social Policy at Harvard University, "Yes, Immigration Hurts American Workers“, politico.com, Sep./Oct. 2016)  In 2016 the median usual weekly earnings of foreign-born full-time wage and salary workers ($715) were 83.1 percent of the earnings of their native-born counterparts ($860). Among men, median weekly earnings for the foreign born ($751) were 79.0 percent of the earnings of the native born ($951). Median earnings for foreign-born women ($655) were 86.0 percent of the earnings of their native-born counterparts ($762). (Source-Bureau of Labor Statistics)  A decade ago, Crider Inc., a chicken processing plant in Georgia, was raided by immigration agents, and 75 percent of its workforce vanished over a single weekend. Shortly after, Crider placed an ad in the local newspaper announcing job openings at higher wages.
  • 51. PROVIDES A DISINCENTIVE TO EMPLOYERS WHO KNOWINGLY HIRE UNDOCUMENTED WORKERS Employers who hire undocumented workers don’t offer safe workplaces. As a result, immigrant workers suffer a disproportionately high rate of work-related fatalities. (Source-How Undocumented Status Impacts the Working Conditions and Safety of Latino Immigrants, Roger Rabb, J.D., Special Correspondent for the LexisNexis Workers’ Compensation eNewsletter, 09- 14-2015)
  • 52. PROVIDES A DISINCENTIVE TO ILLEGAL IMMIGRATION TO OHIO DUE TO THE UNAVAILABILITY OF WORK Undocumented workers and their families receive more in government benefits than they pay in taxes.  In 2013, think tank The Heritage Foundation released a study concluding that as of 2010, the average unlawful immigrant household has a net deficit (benefits received minus taxes paid) of $14,387 per household.[ (Source- Cost of Unlawful Immigrants to the U.S. Taxpayers". Heritage.org. 2013-05-06.)
  • 53. PROVIDES A DISINCENTIVE TO ILLEGAL IMMIGRATION TO OHIO DUE TO THE UNAVAILABILITY OF WORK  Availability of employment for undocumented workers provides an incentive for illegal immigration, which weakens U.S. border security, and leads to a greater threat of terrorism, drugs and other negative influences from outside the country. (Source- James A. Lyons, Retired Admiral, Former Commander in Chief of the US Pacific Fleet, and Senior US Military Representative to the United Nations, "LYONS: The National Security Component of Immigration Reform" Washington Times website, Aug. 14, 2013)  There is no evidence that immigrants commit more crimes than U.S. citizens. However, illegally emigrating from one country to another does involve a network of criminal activity. Criminal organizations promising to help immigrants illegally move between countries often engage in human trafficking, drug running and other crimes. (Source-Michael McDonald, PhD, Assistant Professor in Finance at Fairfield University, "10 Ways Illegal Immigration Affects You Financially”)
  • 54. PROVIDES A DISINCENTIVE TO ILLEGAL IMMIGRATION TO OHIO DUE TO THE UNAVAILABILITY OF WORK Illegal immigrants can put a financial burden on local and federal law enforcement  Costs associated with law enforcement, border security and crimes including human smuggling.  According to the National Review, U.S. taxpayers paid about $1.9 billion to house imprisoned illegal immigrants in fiscal year 2014 and almost all of that financial burden was shouldered by the states. It cited a study of state and federal data.
  • 55. PROVIDES A DISINCENTIVE TO ILLEGAL IMMIGRATION TO OHIO DUE TO THE UNAVAILABILITY OF WORK Immigrants on average tend to have larger families that those in the U.S. This difference can strain the resources of local school districts. (Source-Michael McDonald, PhD, Assistant Professor in Finance at Fairfield University, "10 Ways Illegal Immigration Affects You Financially”)
  • 56. PROTECTS EMPLOYERS WHO COMPLY WITH IRCA Protects employers who comply with IRCA from both workers’ compensation claims and personal injury actions by employees who mislead the employer about their immigration status Provides an additional incentive to employers to comply with U.S. immigration laws
  • 57. PRESERVES JOBS FOR THOSE WHO ARE IN OHIO LEGALLY  Of the 465 civilian occupations, only four are majority immigrant. These four occupations account for less than 1 percent of the total U.S. workforce.  Moreover, native-born Americans comprise 47 percent of workers in these occupations.  Many jobs often thought to be overwhelmingly immigrant are in fact majority native-born:  Maids and housekeepers: 55 percent native-born  Taxi drivers and chauffeurs: 58 percent native-born  Butchers and meat processors: 63 percent native-born  Grounds maintenance workers: 65 percent native-born  Construction laborers: 65 percent native-born  Porters, bellhops, and concierges: 71 percent native-born  Janitors: 75 percent native-born  (Source-Jobs Americans Won’t Do? A Detailed Look at Immigrant Employment by Occupation, Steven A. Camarota and Karen Zeigler, Center for Immigration Studies, August 17, 2009)
  • 58. Potential Negative Effects of the Ohio Workers First Act
  • 59. OPENS EMPLOYERS TO THE POSSIBILITY OF PERSONAL INJURY ACTIONS ARISING FROM WORKPLACE INJURIES The question of whether there is “clear and convincing evidence” of employer knowledge is a question for the trier of fact if the rebuttable presumption does not apply The Virginia legislature specifically included undocumented workers under the definition of “employee” due to employer concerns surrounding that issue.
  • 62. SMALLER EMPLOYERS An individual hires a household worker, a baby sitter, or a lawn care professional on the recommendation of a friend That person earns more than $160 per calendar quarter  With respect to the household worker that alone would constitute an employee under the terms of O.R.C. 4123.01(A)(1)(b)  With respect to the lawn care professional, assume that the working arrangement is sufficiently under the employer’s control to defeat the independent contractor test
  • 63. The employer does not fill out an 1-9 form; does not request any employment documentation; and does not question the fact that the employee insists on being paid in cash Based upon what they’ve heard from the friend who recommended the worker, the employer knows that the worker’s immigration is, at the very least, questionable The employee is injured in a situation in which the employer could be found to have been negligent
  • 64. Because the employer did not comply with the IRCA, the rebuttable presumption that the employer did not knowingly hire an undocumented worker does not apply Absent the rebuttable presumption, there is the possibility of a personal injury lawsuit going to trial, without the employer having the protections afforded by the workers’ compensation act Whether the employee can provide “clear and convincing evidence” that the employer knew about their undocumented status is a question for the trier
  • 65. MANY WELL KNOW PEOPLE HAVE HIRED UNDOCUMENTED WORKERS Lou Dobbs (who knowingly had undocumented workers in his stables) Lorraine Henderson, former Boston Regional Director for Homeland Security (who had three undocumented domestic workers) Linda Chavez (the first Latina ever nominated for a White House Cabinet position who, when it was disclosed that she had an undocumented domestic worker, admitted “I think I always knew”)
  • 66. IT’S NOT JUST SMALL EMPLOYERS In September of 2017, Asplundh Tree Expert Co., one of the largest privately held corporations in the nation, was ordered to pay $95 million in penalties for employing people in the United States illegally. Asplundh employed thousands of undocumented workers between 2010 and 2014 with its top management remaining "willfully blind" while lower-level supervisors hired people they knew were in the country illegally to maximize profit.
  • 67. In 1998, Donald J. Trump’s company settled a lawsuit which alleged that in 1980 it employed a crew of 200 undocumented Polish workers to demolish the Bonwit Teller building on Fifth Avenue, where the Trump Tower now stands. President Trump has testified that he was unaware of the workers’ undocumented status, and that the hiring was done through a subcontractor. The case never went to trial.
  • 68. COULD A WELL-INTENTIONED LARGER EMPLOYER LOSE ITS WORKERS’ COMPENSATION IMMUNITY? An employer could overlook an arguably “noticeable flaw” in the employee’s paperwork An employer could fail to complete the I-9 paperwork within the 3 days required by the IRCA An employer could fail to maintain the documents for three years, or fail to re-certify when necessary. In either of those situations, the employer would no longer meet the requirement of the rebuttable presumption that the employer “has complied with” the requirements of IRCA
  • 69. WHAT’S AT STAKE? A WYOMING EXAMPLE In 2012, in the case of Romero v. Reiman Corp., in the U.S. District Court of Wyoming, a jury awarded $1,000,000 in damages to a worker who fell 10 feet onto a slab of concrete. Romero sustained a broken wrist and a herniated lumbar disc. As an illegal immigrant, Romero was not an “employee” under Wyoming’s workers’ compensation law. Accordingly, workers’ compensation immunity did not apply.
  • 70. In 2014, in the case of Herrera v. Phillips, 2014 WY 118, 2014 Wyo. LEXIS 135, the Wyoming Supreme Court again found that an undocumented worker could sue his employer in tort. The employer did not have a properly completed I-9 form in the worker’s personnel file. The worker also testified that the supervisor who drove him to the hospital after the injury asked, “You’re illegal, aren’t you?” The Wyoming Supreme Court said there was conflicting evidence as to whether the employer had a reasonable basis to believe that the worker was authorized to work. Accordingly, summary judgment was improper. The court said that at trial, the fact finder must determine whether the employer had a reasonable belief, based on documentation in its possession, that the worker was authorized to work in the United
  • 71. PROVIDES AN INCENTIVE FOR UNSCRUPULOUS EMPLOYERS TO HIRE UNDOCUMENTED WORKERS “Since undocumented workers will no longer be able to file a claim when injured on the job, this bill will encourage employers to hire non-citizens.” Rep. David Leland (D- Columbus). “HB 380 incentivizes illegal employers who put profit first to look the other way when hiring undocumented workers,” said Rep. Tavia Galonski (D-Akron). The data from the two states that bar undocumented workers from receiving benefits is a mixed bag. Although both states have relatively low overall numbers of undocumented workers, in Idaho undocumented workers make up 4% of the workforce, one of the higher rates in the country. In Wyoming, however, undocumented workers make up only 1.4% of the workforce.
  • 72. IMPROPERLY SHIFTS THE COSTS OF INJURIES SUSTAINED BY UNDOCUMENTED WORKERS ONTO SOCIETY AS A WHOLE  Emergency Room visits lead to increased insurance premiums  Medical costs specifically for uninsured illegal immigrants are estimated at $4.3 billion per year, according to the Center for Immigration Studies, primarily due to the use of emergency rooms and free clinics.  Undocumented immigrants are eligible for emergency Medicaid if they are otherwise eligible for their state’s Medicaid program  The cost of treating illegal immigrants amounts to nearly $11 billion a year, according to calculations done by the Federation for American Immigration Reform (FAIR), a non- profit group that opposes illegal immigration.
  • 73. REMOVING UNDOCUMENTED WORKERS FROM THE LABOR POOL WOULD HAVE NEGATIVE ECONOMIC IMPACTS  Social Security’s “No-Match” program  According to estimates from the Pew Hispanic Center, 60% of undocumented workers are in formal employment and are paying Social Security taxes  When an employer completes an I-9 form with an incorrect social security number, the Social Security Administration sends the employer a “no-match” letter. As of 2003, there were 255 million wage items totaling $519.6 billion showing up as “no-match” in “suspense files”. This money will remain in the Social Security Fund  State and Local Taxes-According to a study from the Institute on Taxation and Economic Policy, undocumented workers paid $72 million in Ohio state and local income taxes in 2010
  • 75. REMOVING UNDOCUMENTED WORKERS FROM THE LABOR POOL WOULD HAVE NEGATIVE ECONOMIC IMPACTSUndocumented workers do not take jobs away from legal U.S. residents  "It might seem intuitive that when there is an increase in the supply of workers, the ones who were here already will make less money or lose their jobs. Immigrants [documented and undocumented] don't just increase the supply of labor, though; they simultaneously increase demand for it, using the wages they earn to rent apartments, eat food, get haircuts, buy cellphones. (Source-Adam Davidson, International Business and Economics Correspondent at National Public Radio (NPR) "Debunking the Myth of the Job-Stealing Immigrant“, nytimes.com, Mar. 24, 2015)  That means there are more jobs building apartments, selling food, giving haircuts and dispatching the trucks that move those phones. Immigrants increase the size of the overall population, which means they increase the size of the economy. Logically, if immigrants were 'stealing' jobs, so would every young person leaving school and entering the job market; countries should become poorer as they get larger. In reality, of course, the opposite happens."
  • 76. REMOVING UNDOCUMENTED WORKERS FROM THE LABOR POOL WOULD HAVE NEGATIVE ECONOMIC IMPACTS Undocumented workers perform jobs that American workers won’t According to a case study done in North Carolina in 2011, 489,000 people were unemployed statewide. The North Carolina Growers Association listed 6,500 available jobs. Just 268 of those 489,000 North Carolinians applied, and 245 were hired. On the first day of work, 163 showed up, and a grand total of seven finished the season. Of the mostly Mexican workers who took the rest of the jobs, 90 percent made it through to the end. (Source- A Case Study of How Foreign Workers Help American Farms Grow Crops – and the Economy, Michael A. Clemens, MAY 2013)
  • 77. UNDOCUMENTED WORKERS DO NOT MAKE THE U.S. LESS SAFE Between 1990 and 2013, the foreign-born share of the U.S. population grew from 7.9 percent to 13.1 percent and the number of unauthorized immigrants more than tripled from 3.5 million to 11.2 million. During the same period, FBI data indicate that the violent crime rate declined 48 percent—which included falling rates of aggravated assault, robbery, rape, and murder. Likewise, the property crime rate fell 41 percent, including declining rates of motor vehicle theft, larceny/robbery, and burglary. (Source- Walter A. Ewing, PhD, Senior Researcher at the American Immigration Council, Daniel E. Martinez, PhD, Assistant Professor in the Department of Sociology at The George Washington University, Ruben G. Rumbaut, PhD, Distinguished Professor of Sociology at the University of California at Irvine, "The Criminalization of Immigration in the United States“, American Immigration Council website, July 13, 2015)
  • 78. CONSTITUTIONAL QUESTIONS Because the bill limits remedies for undocumented workers who sustain an injury/occupational disease at work, it may raise questions under the Ohio constitutional provisions governing: Due Process The right to an open court The right to a remedy
  • 84. Visiting Washington in 1979 during a time when the United States was urging the Soviet Union to allow more Jews to emigrate to the U.S., the Chinese leader Deng Xiaoping, according to Jimmy Carter's memoirs, told the American president: "If you want me to release ten million Chinese to come to the United States I'd be glad to do that."
  • 85. An estimated 40 to 50 percent of illegal immigrants residing in the United States did not illegally cross the border. Instead, they obtained legal visas as employees, students, or tourists and did not return home when their visas expired.[11] 11Miller, Debra A. Illegal Immigration. San Diego, CA: ReferencePoint Press, Inc., 2007.
  • 86. About 60 percent of immigrants currently residing in the United States arrived before 2000. 1CAP Immigration Team. “The Facts on Immigration Today.” Center for American Progress. Updated October 23, 2014. Accessed: October 20, 2016.
  • 87. The six American Nobel Prize winners of 2016 in the areas of chemistry, physics, and economics are all immigrants.[4 4Feliz, Wendy. “Six of America’s 2016 Nobel Laureates are Immigrants.” Immigration Impact. October 11, 2016. Accessed: October 29, 2016.
  • 88. Shortly after the adoption of the Constitution, a proposal was made to print all federal laws in German as well as English because of the large number of German immigrants. One vote in the House of Representatives defeated the proposal.[ 14Wepman, Dennis. Immigration. New York, NY: Facts On File, Inc., 2008
  • 89. An estimated 40 percent of all Americans have an ancestor who arrived in the United States through Ellis Island. 11Miller, Debra A. Illegal Immigration. San Diego, CA: ReferencePoint Press, Inc., 2007
  • 90. In 1819, Congress passed a law requiring that the names, ages, and occupations of all arrivals into the United States be recorded. This law is considered the first significant legislation on immigration made by the federal government.[14 14Wepman, Dennis. Immigration. New York, NY: Facts On File, Inc., 2008
  • 91. Undocumented immigrants often do the cleanup work after a disaster like Hurricane Katrina or Hurricane Ike. Some 100,000 Hispanics moved into the Gulf Coast after Katrina—half were undocumented. Source- 10 Facts You Didn’t Know about Immigration and the Undocumented, Avit Chomsky, Broadside Press, May 23, 2014
  • 92. WHAT DO PEOPLE IN THE INDUSTRY THINK ABOUT THIS ISSUE?
  • 93. SHOULD UNDOCUMENTED WORKERS BE DENIED WORKERS’ COMPENSATION BENEFITS?SOURCE: WORKERSCOMPENSATION.COM
  • 94. SHOULD INJURED WORKERS FOUND TO BE USING FALSE DOCUMENTATION BE DEPORTED?
  • 95. SHOULD BENEFITS CONTINUE AFTER AN INJURED WORKER IS DEPORTED?