The ongoing tug-of-war between the federal government and the states over the legality of requiring private businesses to act as de facto immigration-enforcement agencies took a new twist in June when a federal district court temporarily blocked Oklahoma from enforcing two key provisions of a 2007 law.

Under Oklahoma HB 1804 — also known as the Oklahoma Taxpayer and Citizen Protection Act of 2007 — businesses seeking contracts with the state would be required to use the federal E-Verify system to check the eligibility of all employees. The rule would also impose state tax penalties on businesses that failed to verify the work-authorization...

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