E-Verify Rule Now in Effect

Following several delays by the Obama administration and two federal court cases denying motions for an injunction, the requirement for federal contractors to use the E-Verify system is now in effect. In June 2008 President Bush issued an executive order requiring federal government contractors to verify the work authorization of all new hires and existing personnel assigned to perform work on future federal contracts after which the FAR Councils issued a proposed rule spelling out the federal agencies’ responsibilities under the order. Under the final rule, starting September 8 of this year, E-Verify is required for all federal contractors, regardless of size, holding a contract with a period of performance longer than 120 days with a value above $100,000. Subcontractors will also be required to participate in E-Verify if they provide services or construction with a value above $3,000. There were several challenges in the courts against the rule (e.g. the rule violates rights of contractors, violates several immigration regulations) and several industry groups attempted to prevent implementation of the rule on the grounds the challenges were likely to succeed but the courts rejected the injunction attempts.

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