The US Government has always had that authority, the Government insists you only hire people who are allowed to work (by their rules) in the US, the Government insists you hire people without discrimination (regardless of how much you might want to), and the Government insists that when you hire someone you will will not exploit them in any number of ways. Further, the Government has given itself the authority to forfeit civil assets, whether or not they get a criminal conviction.
Clearly it doesn't apply to non US governments but the government of the United States has all of the tools already at their disposal to unilaterally implement just this sort of policy.
The policy question is a bit deeper than that, governing is ideally equal parts carrot and stick, and when there is clear evidence of a harm (and there is in this case) where it is impractical for the citizen to prosecute their own defense (could be debated either way) then the last line of defense for the citizen is the enforcement by their collectively empowered authority. That is perhaps the fundamental source of authority for any government.
Clearly it doesn't apply to non US governments but the government of the United States has all of the tools already at their disposal to unilaterally implement just this sort of policy.
The policy question is a bit deeper than that, governing is ideally equal parts carrot and stick, and when there is clear evidence of a harm (and there is in this case) where it is impractical for the citizen to prosecute their own defense (could be debated either way) then the last line of defense for the citizen is the enforcement by their collectively empowered authority. That is perhaps the fundamental source of authority for any government.