Business on the Border

"This is law by hysteria," says John Augustine, whose family has farmed and ranched in Arizona since 1950 and employs about 150 workers. Augustine and other business owners have prepared for the law by retaining lawyers and auditors to review hiring and record-keeping procedures. He says his cotton and alfalfa farm doesn't hire illegal immigrants, but that doesn't mean the law won't affect his businesses. "I have a hard time finding labor now," he says. "Because there will be fewer people in the workforce, it will be even harder to find labor, and you'll pay more for it."

The law has already had a negative effect on some businesses, says Maria Arredondo, owner of Meubeleria Central, a Phoenix furniture store that caters to Latino immigrants—both legal and illegal. Customers started dwindling when news of the law first broke in the summer, and now Arredondo wonders how long she can survive. Prospective customers tell her they like her furniture and they like her prices, but they're saving their money in case they get deported. With little business income to make her home mortgage payments, Arredondo rented her house and moved with her three young children into the furniture store. "I am an American citizen," she says, "and I don't know how much longer I can hold on."

It's proving to be a difficult time for Latinos in Arizona. It didn't help that Phoenix Mayor Phil Gordon recently shocked the Latino community by appointing a panel to explore whether the Phoenix police should regularly check for immigration status. Maricopa County Sheriff Joe Arpaio has arrested nearly 1,400 undocumented immigrants, with the blessing of County Attorney Andrew Thomas. Arpaio relies on state laws that outlaw human smuggling and federal laws that allow officers to check citizenship or residency status in the course of their duties, for instance a routine traffic stop. "We don't arrest randomly," says Lisa Allen, a spokeswoman for the sheriff's office. But immigrants fear they may be deported if they have even one traffic violation. And now the employer sanctions law looms.

"What you have is a slow-growing panic," says Alfredo Gutierrez, who was a state senator for 14 years and now owns a Phoenix-based lobbying firm and hosts a Spanish-language radio talk show. "You have a community feeling besieged," he says. "People are saving their money and waiting. They talk about leaving, but few have. The great and overwhelming majority of people are just going to stay here. They have very few resources to go check out jobs in places like Ohio."

In the near future, safe havens in other states may be hard to find. Arizona's law is viewed as a test case by other states, "trying to create order inside of chaos" caused by federal inaction, says Sheri Steisel, director of the immigration task force for the National Conference of State Legislatures. Steisel says state legislatures passed at least 244 laws related to immigrants and immigration in 2007, a three-fold increase over 2006. Although Arizona's new law imposes the toughest sanctions on employers, 19 other states passed measures related to employment of undocumented immigrants. Oklahoma now makes it a felony to harbor, transport or shelter illegal immigrants and, like Arizona, requires employers to verify immigration status through online databases.

Opponents of Arizona's law vow they'll continue to try block the law's debut on Jan. 1. Time, however, is not on their side.

© 2007