Federal Judge Orders Delaware to Comply with ICE Subpoena for Employer Data

The legal battle began when Delaware refused to comply with a series of ICE subpoenas in early 2025, leading to a federal lawsuit to enforce compliance. The state argued that releasing the data would violate confidentiality regulations and harm the unemployment insurance system. Judge Connolly, however, found these arguments unconvincing, asserting that employers are legally required to submit wage reports and that federal regulations permit sharing this information with subpoena-authorized agencies.

The court's decision hinged on whether the subpoena served a legitimate purpose, sought relevant information, and was not unduly broad or burdensome. Connolly concluded that the investigation into businesses suspected of employing undocumented individuals fell within ICE's scope and that the requested data was relevant to the inquiry. The judge also downplayed the burden on the state, noting the subpoena sought only 30 records covering two quarters for 15 businesses.

This ruling aligns with the federal government's broader efforts to expand immigration enforcement and leverage state data for immigration-related investigations. It serves as a reminder of the ongoing tension between federal authority and state autonomy in matters of immigration.

To investigate businesses suspected of employing individuals unauthorized to work in the United States.

Wage reports and employee rosters, including names, Social Security numbers, and wages.

The state claimed compliance would undermine trust with employers and threaten the unemployment insurance system.

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