Missouri lawmakers have passed legislation that would give the state attorney general significantly expanded powers to investigate and penalize businesses accused of knowingly hiring undocumented immigrants.
House Bill 2366, sponsored by State Rep. Jeff Vernetti, was approved during the final weeks of the legislative session and now awaits action from Gov. Mike Kehoe.
Supporters say the measure is aimed at businesses that deliberately circumvent labor laws and gain unfair competitive advantages by employing unauthorized workers outside legal hiring systems.
According to reporting by Missourinet and KBIA, the proposal would allow the Missouri attorney general to seek injunctions, subpoena records, impose financial penalties and potentially suspend business licenses in cases involving alleged illegal hiring practices.
Vernetti told Missourinet the current system gives state officials limited enforcement authority.
“If a contractor is knowingly hiring illegal workers and a complaint is filed to the Attorney General’s office, they have no real ability to fine the business, you know, potentially stop the practice from happening,” Vernetti said.
Focus on contractors and subcontractors
The legislation largely centers on the construction industry and subcontracting practices.
Vernetti argued some companies are hiring undocumented workers in cash-based arrangements while avoiding taxes, insurance and workplace protections.
“The biggest thing is you have firms paying people in cash – they’re stacking illegal immigrants in a hotel, eight and 10 people in a room, they’re paying in cash – so they’re not paying workman’s comp, they don’t have insurance on them, they’re obviously not paying any payroll tax, either to the state or to anybody, and they’re able to undercut those that are doing it right,” Vernetti told KBIA and the Columbia Missourian.
Under revised language added during negotiations, contractors using federal employment verification systems such as E-Verify could use that compliance as an affirmative defense if accused of violations.
Business groups that initially opposed the bill, including the Associated General Contractors of Missouri, later shifted to a neutral position after amendments were added.
In a statement provided to Missourinet, the Associated General Contractors said: “We had concerns with HB 2366 as originally filed, but we appreciate the sponsor and other stakeholders working with us to strengthen protections for contractors acting in good faith while still addressing the concerns that led to the legislation being introduced.”
Critics warn of expanded state immigration enforcement
Opponents argue the legislation risks expanding state-level involvement in federal immigration enforcement.
Sarah Berry, who testified during a committee hearing, said: “Missouri cannot turn employers into immigration police. Immigration enforcement is a federal responsibility, not a state one.”
Some Democratic lawmakers also expressed concern that the legislation could increase fear within immigrant communities at a time of heightened national immigration enforcement debates.
Rep. Wick Thomas, a Kansas City Democrat who voted against the measure, said: “I am always going to stand up for my immigrant and refugee neighbors.”
Broader immigration proposals also advancing
The employment bill is part of a broader package of immigration-related legislation considered in Missouri this year.
Other proposals include tighter verification requirements for public assistance programs and a measure that would require immigration-status verification before certain international money transfers are processed.
Supporters say the legislation is intended to reduce fraud, strengthen labor-law enforcement and discourage illegal immigration.
Critics argue many of the proposals duplicate existing federal law while increasing bureaucracy and administrative burdens for businesses and families.
House Bill 2366 passed with relatively limited opposition in the legislature, reflecting broader national debates over immigration policy, labor markets and workplace enforcement that continue to shape politics both in Missouri and across the United States.
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