Mandatory E-Verify For Federal Contractors Beginning September 8, 2009

After several delays, the mandatory use of E-Verify for federal contractors is scheduled to go into effect on September 8, 2009.  At that time (presuming there is not another delay), E-verify will be required for many federal contractors and sub-contractors to verify the employment eligibility of new hires and current employees who perform contract services for the federal government.  Previously use of E-Verify was voluntary, but beginning September 8, 2009, it will be mandatory for many federal contractors and subcontractors.  One exception is for federal contractors who only provide "commercially available off-the-shelf items," or COTS, who are exempt from this new rule.  Other contractors and subcontractors are excluded based upon the contract not exceeding certain dollar amounts ($100,000 for contractors and $3,000 for subcontractors).

E-Verify is an automated, internet based system in which employers enter employee I-9 information to be electronically checked against government database records.  The process allows participating employers to electronically verify the employment eligibility of new hires.  It also determines the validity of the new hires' social security numbers.

If you are a federal contractor or subcontractor that is hired for a federal contract on or after September 8, 2009, the contract will contain a provision expressly requiring use of E-Verify.  Under the new rule, you then have 30 calendar days from the contract award date to enroll in the program and to begin verifying that both: (1) new hires, and (2) current employees who perform contract services for the federal government, are authorized to work legally in the U.S.  This new rule differs from the existing E-Verify policy, which permits verification only of new hires.

Contractors are free to enroll in the program at any time before September 8, 2009, but the system can only be used to verify new hires' eligibility for employment prior to that date.  The employment eligibility of existing employees may only be submitted by federal contractors who have been awarded a contract on or after September 8, 2009 for those employees performing services pursuant to the contract.