Federal Contractors Must Use E-Verify Sept 8, 2009

Well, we’ve known it would happen. President Bush signed Executive Order 12989, on June 6, 2008, directing federal agencies to require that federal contractors agree to electronically verify the employment eligibility of their employees by using E-Verify. The final rule has been delayed several times while it has been challenged in court and reviewed by the current administration. After a careful review, the Administration will push ahead with full implementation of the rule, which will apply to federal solicitations and contract awards Government-wide starting on September 8, 2009.

Federal contractors and subcontractors will be required to begin using the E-Verify system starting September 8, 2009, to verify their employees’ eligibility to legally work in the United States. The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council amended the Federal Acquisition Regulation (FAR) to reflect this change.

Federal contracts awarded and solicitations issued after September 8, 2009 will include a clause committing government contractors to use E-Verify. The same clause will also be required in subcontracts over $3,000 for services or construction. Contracts exempt from this rule include those that are for less than $100,000 and those that are for commercially available off-the-shelf items. Companies awarded a contract with the federal government will be required to enroll in E-Verify within 30 days of the contract award date. They will also need to begin using the E-Verify system to confirm that all of their new hires and their employees directly working on federal contracts are authorized to legally work in the United States.

E-Verify is the web-based system that allows an employer to use the information obtained on the Form I-9, Employment Eligibility Verification, to electronically verify an employees work eligibility within a few seconds by comparing the information from the I-9to the records in the databases of the Department of Homeland Security and the Social Security Administration. Currently, using E-Verify is voluntary for all U.S. employers. However, the federal contractor rule extends use of the E-Verify system to most federal contractors and subcontractors, including those who receive American Recovery and Reinvestment Act funds. This new rule requires federal contractors to agree to use E-Verify to confirm the employment eligibility of all persons hired during a contract term, and unlike voluntary use of E-Verify which expressly forbids employers from using E-Verify for their current employees, this rule will require federal contractors to confirm the employment eligibility of their current employees who perform contract services for the federal government within the United States.

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