Federal Contractor E-Verify Regulation Postponed Until Feb. 20, 2009

01/09/2009

The United States government will postpone from January 15 to February 20, 2009 the implementation of the regulation that would require certain federal contractors to participate in the E-Verify electronic employment verification program. The postponement is the result of an agreement between the government and plaintiffs in a federal lawsuit seeking to block implementation of this regulatory requirement. The plaintiffs in the lawsuit are the U.S. Chamber of Commerce, the American Council on International Personnel, the Society for Human Resources, the H.R. Policy Association, and the Associated Builders and Contractors. Under the agreement, federal acquisition officers will not include the E-Verify clause in any federal contract awarded prior to February 20th.

If implemented, the rule would direct federal acquisition officers to include a clause in certain federal contracts and solicitations requiring contractors to use the E-Verify program to verify the employment eligibility of all new hires, as well as the eligibility of existing employees who will directly perform work under the contract. The E-Verify requirement would apply to federal contracts with a performance period longer than 120 days and a value over $100,000. Service or construction subcontracts of a covered contract would also be required to include the E-Verify clause, if the value of the subcontract is over $3,000. Contracts for items that are commercially available “off the shelf” or that require only minor modifications would be exempt, as would federal contracts for food and agricultural products shipped as bulk cargo and contracts for work performed outside the United States.

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