On July 8, 2009, the Department of Homeland Security (DHS) announced implementation of the E-Verify Federal Contractor Rule, and will rescind the Social Security Number (SSN) 'No-Match' regulation. Both of these rules are related to worksite enforcement and have been the subject of federal court litigation.
The DHS will rescind the SSN 'No-match' regulation which requires employers to take specific mandated steps in determining the employment eligibility of workers whose names and SSNs do not match. Additionally, the agency announced that it will implement the amendment to the Federal Acquisition Regulation (FAR) which, subject to limited exemptions, requires federal contractors to verify the employment authorization of their employees.
Assuming implementation in its existing form, the FAR rule will become effective on September 8, 2009. Under the rule, federal contracts awarded and solicitations issued after September 8, 2009 must include a clause committing government contractors to use E-Verify. The E-Verify requirement will 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 are exempt, as are federal contracts for food and agricultural products shipped as bulk cargo and contracts for work performed outside the United States.
How This Affects You
Provided the final FAR rule is published in its existing form, 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 E-Verify 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.
We will provide further information as soon as it becomes available.
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