A raid on a Sacramento nursery provides a perfect example of how businesses in California and other states with large immigrant populations are facing a dilemma. Hiring immigrants gives these businesses access to the inexpensive labor forces they need to make their companies thrive, but the thorny employment law issues around hiring such workers and the difficulty of determining whether an immigrant is legally permitted to work in the U.S. sometimes make it not worth the risk.

Matsuda's Nursery is a multi-million dollar, 130-acre operation that spans 130 acres on Florin Road in Sacramento. In the 60 years it has been in business, it has developed a substantial client list of landscapers who work in Los Angeles, San Jose and Concord.

Last spring, U.S. Immigration and Customs Enforcement raided the premises and found 61 undocumented workers, which accounted for about 60 percent of Matsuda's workforce. The raid happened at a bad time for Matsuda's. It occurred around Easter, when orders for flowers and garden plants really pick up and workers are needed to meet customer needs.

A manager said the company's exit interviews with the undocumented workers were "painful" and that many people were crying.

Companies like Matsuda's can really struggle to comply with employment laws. Recent immigrants may constitute a less expensive labor force than natural citizens, and inexpensive labor is integral to the business model of many agriculture-related firms. But then again, businesses do not save any money if the cost of checking a prospective employee's legal status is overly high, nor if they get slapped with a large fine for hiring undocumented workers.

Many businesses like Matsuda's would probably benefit from a consultation with a business and corporate law attorney. Such an attorney might be able to look at your business model and employment needs and develop a system for staying in compliance with employment laws that meets your needs.

Source: The Sacramento Bee, "After immigration raid, Sacramento nursery rebounds - but questions U.S. policy," Stephen Magagnini, Oct. 11, 2011