On September 17, 2008, the Ninth Circuit Court of Appeals upheld the controversial Legal Arizona Workers Act (LAWA). Under the LAWA, which took effect January 1, 2008, a business found guilty of "knowingly" or "intentionally" hiring undocumented workers faces suspension or revocation of its business license and is placed on probationary status for a period of time. LAWA also requires employers to use the controversial federal E-Verify system to check the work-authorization status of employees.

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