AZ SB1517

Amends Arizona employment law to create a "safe harbor" defense for employers who verify employee work authorization through the E-Verify program, protecting them from liability for knowingly or intentionally employing unauthorized aliens.

Safe harbor does not apply if the employer pays employees in cash or has received notice from state, local, or federal authorities that an employee is using false documents to establish employment eligibility.

Maintains existing penalties for violations including mandatory termination of unauthorized alien employees, probationary periods (3 years for knowing violations, 5 years for intentional violations), and potential license suspension or permanent revocation on second violations.

Requires employers found in violation to file quarterly reports on new hires and file sworn affidavits confirming termination of unauthorized workers within three business days of court order.

Establishes that affidavit compliance restores suspended licenses immediately, and directs the Attorney General to maintain a public database of employers with first violations on the state website.