E-Verify Rule for Federal Contractors Postponed

The federal government has postponed to Feb. 20 a requirement for government contractors to use the E-Verify system to check employees’ eligibility to work in the U.S.

A new rule requiring federal contractors to use E-Verify had been scheduled to go into effect Jan. 15. The Department of Homeland Security said Jan. 9 it would push back the date because of a federal lawsuit filed Dec. 23 by the U.S. Chamber of Commerce and other business groups. The suit argues the government doesn’t have the authority to make E-Verify mandatory for contractors.

E-Verify provides an Internet-based means for employers to compare the names and Social Security numbers of newly hired employees against government databases. About 100,000 businesses participate in the program, which is now voluntary.

Under a regulation issued Nov. 14, however, companies that receive federal contracts of $100,000 or more must use E-Verify to confirm the employment eligibility of all new hires and reconfirm the eligibility of existing employees who are assigned to federal contracts. These requirements also apply to most subcontractors.

Complying with the rule will cost federal contractors $188 million in 2009, according to government estimates.

Robin Conrad, executive vice president of the National Chamber Litigation Center, said the delay in the rule’s effective date will give the Obama administration an opportunity to re-evaluate the policy’s efficacy.

Homeland Security spokesman Russ Knocke said, however, that “the brief pause in implementation” will not change the rule, “which will remain legally final and binding.”

For information on E-Verify, see www.dhs.gov/everify.