It’s not often the national business community looks to Arizona but this year that’s exactly what’s happening with the new law that cracks down on employers hiring illegal immigrants.

Described as the toughest such law in the nation, many see it as a test of how business will react to more stringent illegal immigration laws that directly affect the business community.

Unlike some regulations with few teeth, Arizona’s law encourages people to contact local county attorneys when they suspect illegal immigrants are being employed. The county attorney then investigates the claim. Any company found to have knowingly hired an illegal immigrant can lose its state business license for up to 10 days. A business found to have done it a second time will have its business license permanently revoked.

The law requires businesses to to sign-up and use E-Verify, a federal database, to see if new hires have bona fide Social Security numbers and are eligible for employment.

I’ve talked to several people in business in Southern Arizona who support efforts to fight the law. At the same time they have fired employees in order to comply with it.

"This could close my doors and I don’t think I’m the only one," one owner told me.

One strategy for manufacturers is to move the business to Mexico.

Tensions are running high on both sides of the issue – those who are demanding action when it comes to hiring illegal immigrants and those who see the huge negative impact from limiting non documented people as workers.

According to U.S. Census data, Arizona’s immigrant population is about 500,000. The University of Arizona’s Udall Center says immigrants make up about 14 percent of the state’s workforce. The census does not ask immigrant about their legal status so it’s impossible to determine how many are here illegally.

If your business does not hire illegal immigrants it doesn’t mean it won’t be affected. A UA study estimates there will be an 8.2 percent drop in economic annual output if immigrant workers are removed from the economic scene.

The opposing argument is that illegal immigrants use services such as hospital emergency rooms and public schools, among others, without paying for them. Lawmakers who drafted the bill that is now law definitely thought illegal immigrants are a drain on the economy.

The politics behind the law can be argued elsewhere but every business in Arizona needs to think through how the new law affects them and make plans to mitigate or capitalize on that effect.

The law has already had the following effects:

• Led businesses to identify and fire illegal immigrants.

• Business revenues are down in areas that have high concentrations of immigrants.

• Prompted some businesses to consider relocating to another state or Mexico.

If your business has a history of hiring illegal immigrants, then I’m sure you have already taken the necessary steps to protect its future from the new law.

If, however, you have a business that peripherally benefited from illegal immigrants in the workforce, the following Best Practices are recommended for you:

• Become informed and get involved with legislation affecting this sensitive area. State lawmakers are due to report back to Phoenix today (Jan. 7) so be aware and learn about efforts to make changes to the law.

• Don’t wait until you’re first quarter financial report comes in to start offsetting losses. Take a hard look now and adjust your marketing and business plans accordingly.

• Figure out where you stand on these crucial business issues and make your thoughts known to your lawmakers.

These issues are not easily solved or even understood given their complexity but as business leaders it is important to stay informed on issues that shape the business environment. No matter your opinion, this will affect your business – make sure you affect the outcome.