From Edward Silverstein,
Your Guide to Labor Issues.
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A national attempt to reform immigration ended up in failure in 2007. The compromise from the Bush administration, and supported by some in Congress, was far-reaching but lacked enough support. It would have:

• Allowed almost all of the undocumented immigrants who entered the country before 2007 to apply for a visa that would have allowed them to stay in the country as long as they met certain rules and conditions.
• Made a temporary-worker program that would have created two-year work visas.
• Created a new system for green-card applications.

Critics blasted it as “amnesty” for undocumented foreign workers. In the meantime, arguments continue over the illegal immigrants in the U.S. who number somewhere from 9 to 12 million, according to recent estimates. About 6 million of these undocumented immigrants are working—representing about 5% of U.S. workers, according to a study by the Urban Institute. These undocumented workers often earn considerably less than working U.S. citizens, according to the Urban Institute. About two-thirds of undocumented workers earn less than twice the minimum wage, compared with only one-third of all workers.

Workers in the U.S. are either worried about losing their jobs to immigrants, illegal or even legal ones, or that reluctance by foreign workers to challenge lower wages will force wages to fall for everyone. According to The Washington Post, there was division among labor and business groups on the last immigration reform proposal. The AFL-CIO opposed the immigration bill, arguing that temporary workers are more vulnerable to labor violations. The AFL-CIO argued that some temporary workers will stay in this country illegally rather than go home when their visa expires. The UNITE HERE International Union supported the legalization of undocumented workers and replacing employer sanctions with labor law enforcement. It was concerned about an underclass of temporary workers. Some business groups have called the temporary-worker program impractical. They opposed a provision that would force employers to verify the legal status of every worker in the country, saying it was cumbersome. The bill's point system for green cards would have deprived them bringing in foreign workers with distinct skills they need. The U.S. Chamber of Commerce backed the proposal as "the contours of a sound compromise."

What’s the Current Law?

Foreign labor certification programs permit U.S. employers to hire foreign workers on a temporary or permanent basis to fill jobs essential to the U.S. economy. Forms need to be properly filled out so that these workers are in the country legally and have the right visas. Letting in these workers is not supposed to adversely affect the job opportunities, wages, and working conditions of U.S. workers, according to the U.S. Department of Labor. The laws are complex. Visit this site for details on federal immigration law compliance tips.

Basically, federal laws supersede local and state laws. The federal government regulates the hiring of all employees by requiring workers to complete Employment Eligibility Verification Form (I-9) forms and by prohibiting the knowing employment of workers without proper authorization. Currently, an H-1B visa represents permission for a foreign individual to enter the United States for a stated period of time to perform a particular job, for a specific employer. The employer must sponsor this skilled worker. An L-1 visa is a visa for foreign workers who transfer to the U.S., to a subsidiary, branch or division of the foreign company they work for that is at least partially located in the U.S. For more information, view this article . The Equal Employment Opportunity Commission says it applies similar standards to undocumented workers as it would to legal ones.

There are attempts to bring new laws on the local level that relate to employing foreign workers. The city of Hazleton, Penn., enacted a series of ordinances in 2006 that —among other things—imposed severe penalties on employers if they hired persons unable to demonstrate lawful immigration status. The action led to a battle in federal court. That conflict, along with worries that many municipalities would try to enact similar ordinances which in turn would lead to a regulatory nightmare, led to some business groups, such as the U.S. Chamber of Commerce, siding with groups supporting the immigrants.

Questions of Economics

Economists are divided on questions about illegal immigrants. Alan Krueger, a Princeton University economist, wrote on immigration reform as it relates to some employment questions. The best available evidence does not support the view that large waves of immigrants in the past have had a detrimental effect on the labor market opportunities of natives, including the less skilled and minorities, Krueger says. He also argues the government needs to protect the rights of immigrant workers, to maximize their contribution to the economy and to prevent exploitation of both these workers and domestic workers. A guest worker program that does not permit free mobility by foreign workers admitted to the U.S. carries significant risks to the U.S. economy. Job shopping is an essential protection against exploitation and inefficient allocation of resources. Stricter immigration policy is unlikely to materially affect the earnings or job prospects of less skilled workers, he concludes.

Others disagree. The more workers, who are willing to work for lower wages, the lower the wages will be, they argue. Illegal workers are afraid to report exploitation or violations for fear of being deported.

What is clear is that the current system is in desperate need of reform. Employers have an extensive burden on them trying to comply with current laws that may or may not be enforceable. The undocumented workers are likely earning more in the U.S. than in their home countries but are easily taken advantage of by a broken system.