OMAHA, Neb. — A federal appeals panel says an eastern Nebraska city ordinance that discourages employing or renting property to people who aren't in the U.S. legally is valid, opening the door for the city to begin enforcing its law.

In 2010, Fremont voters easily approved the measure, which bans hiring or renting to people who couldn't prove they are in the country legally. The ordinance also required businesses to use federal E-verify software to check on potential employees.

Last year, U.S. District Judge Laurie Smith Camp ruled as discriminatory the parts of the ordinance that deny housing permits, saying they interfere with federal law.

On Friday, two judges of a three-member panel of the 8th U.S. Circuit Court of Appeals rejected that reasoning, reversed the ruling and vacated the lower court's injunction.