INDIANAPOLIS (WISH) — Businesses could face fines for knowingly hiring workers living in the country without legal permission under an Indiana law taking effect soon.

That was the message from Indiana Attorney General Todd Rokita at a Thursday news conference.

Enforcement of Senate Enrolled Act 76, called the Fairness Act by Republicans, is set to begin July 1. The law will mark the first time in the state’s history that businesses will be financially penalized for employing workers in the country without legal permission.

Rokita said, “We do expect whatever operation you run to have it run fairly, and that means you hire Hoosiers and you at least hire U.S. citizens, and you do not try to exploit cheap labor from people who shouldn’t be here in the first place.”

The Republican attorney general said the goal of the law was to crack down on what he calls “underground economies” and “labor trafficking” in the construction industry.

A Central Midwest Carpenters’ Union representative said both union and nonunion companies are being undercut by competitors who take advantage of low-wage workers living in the country without legal permission. Kyle Gresham said, “There is a right way and a wrong way to do things. This is not a union and nonunion issue. This is about workers. This is about doing what’s right. This is about paying their fair share.”

“I’ve seen workers hanging drywall for as little as 15 cents a square foot, and if you do the math, that’s not a lot. There’s no overtime, no insurance, no workers’ comp insurance. These workers are in a completely exploitive business model.”

Construction workers that News 8 spoke to said they fear losing more coworkers and taking on additional responsibilities.

Senate Enrolled Act 76 goes beyond construction sites. It also requires schools, government agencies, and law enforcement to cooperate with U.S. Immigration and Customs Enforcement.

Critics say the law could lead to racial profiling, but Rokita said, “I’m not going to worry a thing about that. We’re going where the facts lead. If there’s a certain demographic that’s being trafficked more than others, do you think they care? That we’re profiling them? We wouldn’t be doing that. We wouldn’t be profiling anything, because it’s labor trafficking.”

The attorney general said his office will rely on tips and referrals from the public to begin any investigations.