The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for an employer to discriminate with respect to hiring, firing, or recruitment or referral for a fee, based upon an individual's citizenship or immigration status. The law prohibits employers from hiring only U.S. citizens or lawful permanent residents unless required to do so by law, regulation or government contract.

Employers may not refuse to accept lawful documentation that establishes the employment eligibility of an employee, or demand additional documentation beyond what is legally required, when verifying employment eligibility (i.e., completing the Department of Homeland Security (DHS) Form I-9), based on the employee's national origin or citizenship status. It is the employee's choice which of the acceptable Form I-9 documents to show to verify employment eligibility.

IRCA also prohibits retaliation against individuals for asserting their rights under the Act, or for filing a charge or assisting in an investigation or proceeding under IRCA.

IRCA's nondiscrimination requirements are enforced by the Department of Justice's Civil Rights Division's Immigrant and Employee Rights Section (IER).

IRCA generally makes employment of unauthorized aliens unlawful (8 U.S.C. §1324a), while prohibiting discrimination in employment based on national origin or citizenship status (8 U.S.C. §1324b).

In Vermont, as in all states, the Immigration Reform and Control Act of 1986 (IRCA) prohibits employers from discriminating against individuals in hiring, firing, or recruitment based on their citizenship or immigration status. Vermont employers are required to follow federal law, which mandates that they cannot hire only U.S. citizens or lawful permanent residents unless specifically required by law, regulation, or government contract. Employers are also barred from rejecting valid, legally acceptable documents presented by employees for the purpose of verifying employment eligibility (Form I-9) or from demanding additional documents beyond those legally required, based on the employee's national origin or citizenship status. Employees have the right to choose which acceptable documents to present for this purpose. Furthermore, IRCA protects individuals from retaliation if they assert their rights under the Act, or if they file a charge or assist in an investigation or proceeding under IRCA. The enforcement of these nondiscrimination requirements is carried out by the Immigrant and Employee Rights Section (IER) of the Department of Justice's Civil Rights Division. Additionally, IRCA makes it illegal to employ unauthorized aliens. Employers in Vermont must comply with these federal regulations and can face legal consequences for violations.