Indiana's New FAIRNESS Act: What Home Care and Senior Service Providers Need to Know

Beginning July 1, Indiana's FAIRNESS Act (Senate Enrolled Act 76) will create new legal risks—and new compliance considerations—for employers across the state, including home care agencies, senior living communities, adult day centers, transportation providers, and other organizations serving older adults.

The law makes it unlawful for employers to knowingly or intentionally recruit, hire, or continue employing individuals who are not authorized to work in the United States. Employers found in violation may face civil penalties of up to $10,000 per violation, and in severe or repeat cases, the Indiana Attorney General may seek to suspend or revoke a business's authority to operate in Indiana.

For senior service organizations already struggling with workforce shortages, the law raises important questions about hiring practices, employee verification, and compliance responsibilities.

"Wasn't This Already Illegal?"

One of the most common questions employers ask is: "Hasn't it always been illegal to hire someone who isn't authorized to work in the United States?"

The answer is yes.

Federal law has long prohibited employers from knowingly hiring unauthorized workers. Since the 1986 Immigration Reform and Control Act (IRCA), employers have been required to verify employment eligibility through the federal Form I-9 process.

What Indiana's FAIRNESS Act changes is not the underlying prohibition—it changes the consequences and enforcement mechanisms at the state level.

The new law gives Indiana additional authority to investigate employers and impose state-level penalties. It also creates a specific compliance framework that employers can use to demonstrate they acted responsibly when verifying a worker's eligibility.

In other words, the law does not create a new requirement to hire only authorized workers. Rather, it increases the legal exposure for employers that fail to adequately verify employment eligibility and creates stronger state enforcement tools.

Why This Matters for Home Care and Senior Service Providers

Senior-serving organizations face unique workforce challenges. Many providers are experiencing persistent shortages of caregivers, home health aides, certified nursing assistants, drivers, dietary staff, housekeeping personnel, and other frontline workers. The pressure to fill open positions quickly can sometimes lead organizations to place less emphasis on documentation and compliance processes than they otherwise would.

The FAIRNESS Act serves as a reminder that employment verification cannot be treated as an administrative afterthought.

Home care agencies, in particular, may face heightened scrutiny because caregivers often work independently in clients' homes, serving vulnerable older adults and adults with disabilities. Agencies must ensure they maintain thorough hiring records and consistently follow employment verification procedures for every employee.

Organizations that rely on decentralized hiring, multiple branch offices, remote onboarding, or high-volume recruitment should consider reviewing their processes before the law takes effect.

Understanding E-Verify

One of the most discussed aspects of the FAIRNESS Act is its reference to E-Verify.

The law does not require Indiana employers to use E-Verify. However, employers that use the system and receive a confirmation that an employee is authorized to work receive an important legal protection.

Specifically, the law provides a "rebuttable presumption" that the employer exercised reasonable diligence in verifying employment eligibility.

Simply put, E-Verify can help demonstrate that an employer acted responsibly and followed a recognized verification process.

How E-Verify Works

E-Verify is a free online system operated by the federal government through the Department of Homeland Security in partnership with the Social Security Administration.

After completing the standard Form I-9 process for a new employee, an employer enters information from the employee's I-9 into the E-Verify system.

The system electronically compares the information against federal databases and typically returns one of several results:

Employment Authorized: The information matches government records, and the employee is confirmed as authorized to work.

Tentative Nonconfirmation (TNC): The information does not initially match government records. This does not automatically mean the employee is unauthorized to work. The employee has an opportunity to resolve the discrepancy with the appropriate government agency.

Final Nonconfirmation: The discrepancy is not resolved, and the system indicates that employment authorization cannot be confirmed.

Most cases receive a response within seconds. It is important to note that E-Verify supplements the Form I-9 process—it does not replace it.

How to Enroll in E-Verify

Organizations interested in using E-Verify can enroll directly through the federal program. To enroll in E-Verify, employers should visit https://www.e-verify.gov/

Is E-Verify Required?

No.

The FAIRNESS Act does not mandate E-Verify participation for most Indiana employers.

Organizations may continue using traditional employment verification procedures if those procedures comply with federal law.

However, employers should understand that the law specifically identifies E-Verify participation as evidence of reasonable diligence. Organizations choosing not to use E-Verify should be confident that their alternative processes are thorough, consistently followed, and well documented and must show that they exercised reasonable diligence to ensure they're only hiring those individuals legal eligible to work in the United States.

Regardless of whether an employer uses E-Verify, maintaining complete and accurate Form I-9 records remains essential.

Practical Steps for Senior Service Organizations

Before July 1, organizations should consider:

• Reviewing current hiring and onboarding procedures

• Auditing Form I-9 completion and retention practices

• Evaluating whether E-Verify participation would benefit the organization

• Training managers involved in hiring decisions

• Establishing clear documentation standards

• Reviewing procedures for remote hiring and onboarding

• Conducting periodic internal compliance reviews

For agencies operating in multiple locations, consistency is particularly important. A strong policy is only effective if every hiring manager follows it the same way.

Looking Ahead

Indiana's FAIRNESS Act reflects a broader trend toward increased state-level enforcement of employment eligibility requirements. While the law does not fundamentally change the longstanding obligation to hire only authorized workers, it does raise the stakes for employers that fail to follow appropriate verification procedures.

For home care agencies and other senior-serving organizations, the best response is preparation. By reviewing hiring practices, strengthening documentation procedures, and evaluating whether E-Verify fits their organization, providers can reduce risk while continuing to focus on their primary mission: delivering quality services to Indiana's older adults and their families.

USCIS has an on-demand video to help train employers on how to properly complete the I-9 form. To access this video, please click here.