Final answer:
The Immigration Reform and Control Act of 1986 requires employers to verify the employment eligibility of all new hires and prohibits hiring illegal immigrants, involving penalties for noncompliance and introducing the Form I-9 for all employees.
Step-by-step explanation:
The federal law which addresses the question is the Immigration Reform and Control Act of 1986. This act prohibits the hiring of illegal immigrants and mandates that employers verify the employment eligibility of all new hires, including American citizens, to ensure they have the legal right to work in the United States. To comply with this law, employers are required to complete and retain a Form I-9 for each individual they hire. The act also imposes penalties on employers who knowingly employ illegal immigrants in an effort to deter undocumented immigration. Moreover, it initiated the process that non-citizens need to maintain proper documentation to confirm their eligibility to reside and work in the country.
The introduction of this legislation marked a turning point in how employment verification is conducted in the U.S. and is a significant aspect of immigration law enforcement. The Act also acknowledged the complexities of immigration issues by creating a guest-worker program and granting amnesty to certain immigrants who met specific residency requirements.