A Missouri lawmaker has prefiled a bill aimed at ending the unfair competitive advantage enjoyed by “rogue companies” that ignore Missouri’s labor laws by hiring illegal aliens.
Carried in the Senate by Republican Sen. David Gregory of St. Louis, the bill filed by state Rep. Jeff Vernetti, a Republican from the Lake of the Ozarks, seeks to empower the Attorney General’s Office to crack down on businesses that knowingly employ illegals to keep operating costs down.
The core of the issue, Vernetti tells The Heartlander, is a lack of fairness in the marketplace.
“I constantly look for issues that are affecting fair business practices and there has been a real issue, especially in mid-Missouri and rural Missouri, where there’s a lot of construction.”
Vernetti alleges there are companies, particularly in the construction and moving industries, that avoid workers’ compensation, skip I-9 verification and hire illegal labor to be able to lower their bids, win projects and increase profits.
“You have companies that do things right … and they’re competing against a lot of rogue companies that are, frankly, doing things that they shouldn’t. They undercut a lot of the companies that are doing it right – companies that are being punished by following the law.”
Vernetti’s bill is designed to ensure that quality and service, not savings through illegal labor, dictates who wins a contract.
“Right now, Missouri law gives the attorney general’s office the authority to penalize businesses – but really, the statutes that are on the books make enforcement very, very difficult. It doesn’t give the attorney general’s office any teeth or any authority whatsoever.”
Currently, the enforcement process only begins when the attorney general’s office receives a written complaint. Once a valid complaint is filed, the AG requests worker information from the business in question. If the business fails to respond, the AG is required to direct the local governing body to suspend the business’s licenses and permits.
“When the attorney general reaches out to business ‘XYZ’ in violation, they just don’t respond because they know that the AG can’t really do anything,” Vernetti said.
Rather than acting as a middleman, Vernetti’s bill would empower the attorney general to initiate civil actions in circuit court to seek immediate injunctions and monetary damages equal to twice the amount of wages paid to illegal alien workers.
The bill “gives the AG much more independent authority to investigate violations,” he says. “It gives them the subpoena power that they need to actually depose companies, and it gives them the ability to enforce penalties against offending businesses in circuit courts.”
The legislation also introduces a strict tiered penalty system for knowing violations. A court can order a 14-day suspension of business licenses for a first knowing violation, a one-year suspension for a second and a permanent suspension for following offenses.
The bill also targets companies receiving state funds. Any business entity awarded a state contract, grant or state-administered tax credit/abatement found in violation will be deemed in breach of contract. For a first offense, the state may debar the company for three years and withhold up to 25% of the total amount due.
To ensure the law is not used as a weapon, the bill includes protections against “witch hunts.” Any person who files a frivolous complaint will be liable for actual, compensatory and punitive damages to the unfairly targeted entity.
Anticipating pushback from the left, Vernetti remains focused on the legal and economic reality of the bill. He emphasizes the bill does not target any specific nationality, but rather the businesses that are skirting the law.
“This [bill] isn’t to just go out and rampantly punish people,” Vernetti said. “It’s about leveling the playing field. May the best company win out on pricing and quality and service.”
