Indiana’s FAIRNESS Act — formally Senate Enrolled Act 76 — takes effect on July 1, 2026. The new law introduces stricter enforcement measures related to unauthorized employment and places additional compliance responsibilities on businesses operating within the state.
Now is the time to review onboarding procedures, employment verification practices, and screening processes to ensure compliance and reduce organizational risk.
Understanding Indiana’s FAIRNESS Act
The FAIRNESS Act makes it unlawful for employers in Indiana to knowingly or intentionally recruit, hire, or continue employing individuals who are not legally authorized to work in the United States. The law applies broadly to employers across industries and company sizes operating within the state.
In addition to expanding enforcement authority, the legislation introduces substantial penalties for noncompliance, including financial penalties and potential operational consequences for repeat violations.
The law emphasizes the importance of proper employment eligibility verification and strengthens the role of federal work authorization tools such as E-Verify.
Why This Matters for Employers
Employment eligibility compliance has long been a required component of the hiring process, but Indiana’s FAIRNESS Act raises the stakes for employers by increasing enforcement visibility and accountability.
Organizations that rely on manual processes or inconsistent onboarding practices may face greater exposure to compliance gaps. Multi-location employers, staffing agencies, contractors, and organizations with high-volume hiring may be especially impacted. Common compliance challenges employers face and should evaluate include:
Even unintentional errors can create operational and reputational risks, and potentially even fines if compliance procedures are not consistently documented and followed.
Preparing for July 1, 2026
While every organization’s compliance needs may differ, early preparation can help minimize disruption and improve hiring confidence. Employers should consult with legal counsel to assess existing processes and identify areas for improvement before the law takes effect.
This blog is intended for Choice Screening's current or prospective clients and partners and may not be forwarded outside of Choice Screening, posted online, or otherwise reprinted in whole or in part. The information contained in this blog is meant to be informative only; it is not all-encompassing, nor does it contain legal advice, expressed or implied. Consult with qualified legal counsel in all matters of employment, business, and background screening law.