As we predicted, the U.S. Supreme Court's decision that most of the restrictive Arizona immigration law was unconstitutional has had a chilling effect of the efforts of states to enact similarly restrictive legislation. The National Conference of State Legislatures has indicated that the number of new immigration-related laws introduced in the various state legislatures has "dropped markedly." According to the report, this resulted primarily due to budget concerns about enforcing and then defending the statutes as well as concerns about how the Supreme Court would rule in the Arizona case.

The Supreme Court's decision in United States v. Arizona should define the parameters of acceptable state legislation. Thus, employers will still have to check both state and federal laws in each jurisdiction in which they operate. At the same time, recent efforts by some states to expand enforcement efforts over undocumented workers has largely been rejected by the Supreme Court, and this should make things easier for most businesses.