E-Verify Requirements for Federal Contractors to Take Effect September 8

Despite several delays, federal regulations requiring certain federal contractors to use the E-Verify employment verification system are set to take effect on September 8, 2009.

Federal Contractor Rule Originally Issued by Bush Administration in June 2008

On June 6, 2008, the Bush administration issued Executive Order 13465 requiring federal government contractors to verify the work authorization of all new hires and existing personnel assigned to perform work on future federal contracts through the government's E-Verify system. On November 14, 2008, regulations were issued to amend the Federal Acquisition Regulation confirming the executive order. The regulations were originally scheduled to take effect on January 15, 2009. However, due to a legal challenge and a review of the rule by the Obama administration, the implementation date of the regulations was postponed four times.

President Obama Supports E-Verify

Implementation of the federal contractor regulations was previously postponed in order to allow President Barack Obama and his staff adequate time to review the rule originally promulgated under the Bush administration. On July 8, 2009, the Department of Homeland Security (DHS) announced it would implement federal regulations requiring the use of E-Verify by certain federal contractors—calling E-Verify a "smart, simple and effective tool."

DHS Secretary Janet Napolitano has frequently voiced her support of E-Verify and has indicated that the federal contractor regulations are consistent with the worksite enforcement strategy of the Obama administration for which E-Verify plays an integral role.

Court Rejects Legal Challenge to Federal Contractor Regulations

A lawsuit challenging the E-Verify rule was filed on December 23, 2008, by a coalition of business groups including the U.S. Chamber of Commerce. On August 26, 2009, the U.S. Court for the District of Maryland granted the federal government's cross motion for summary judgment, rejecting the arguments advanced by various business groups challenging the validity of the executive order and regulations. This decision further ensures that the regulations will take effect on September 8 without further delay.

For more information about the federal contractor E-Verify requirements, see previously published Faegre.com articles E-Verify Requirement by Federal Contractors Delayed Until September 8 and E-Verify Mandatory for Federal Contractors Starting May 21.