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The Supreme Court held 3/27/02 that federal immigration policy, as expressed in the Immigration Reform and Control Act of 1986 (IRCA), forecloses awards of backpay to illegal aliens. Chief Justice Rehnquist, writing for the Court, noted that while the National Labor Relations Board enjoys considerable discretion in fashioning remedies for violations of the nation’s labor laws, that discretion is limited not only by the labor laws themselves, but also by other federal statutes and policies. Combating the employment of illegal aliens is one such policy – a policy that Congress elevated to a central role in immigration law when it enacted IRCA. Granting backpay to an illegal alien, as the Board did in this case, runs directly counter to that policy. Justice Breyer, joined by Justices Stevens, Souter, and Ginsburg, dissented, emphasizing that backpay serves important remedial purposes, such as deterrence of labor law violations. Furthermore, he contended, by rendering the labor laws toothless in cases involving illegal aliens, the Court’s decision creates an incentive for employers to hire illegals, and thus thwarts immigration policy. This case is important to all employers.