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Effective May 21, 2009 companies entering into new federal contracts will have to use E-Verify to double-check the immigration and legal work status of new employees. This deadline has been delayed from January 15, 2009. 

The Office of Management and Budget or OMB recently extended the deadline after a request by the SHRM, or Society of Human Resource Management.

President Obama’s Chief of Staff Rahm Emanuel sent a memo to all federal agencies, suggesting that they delay effective dates of any regulations introduced during the last few months of the Bush Administration. SHRM had partnered with other business organizations to fight the new regulation in court.

The Department of Justice concurred with the SHRM request to delay the deadline. Although a federal district court judge in Maryland must review the delay, it seems certain to be approved.

This action gives federal contractors (more…)

Federal contractors have been given a few more weeks to purchase required supplies and comply with the new E-Verify regulations.

The U.S. Department of Justice recently announced that the deadline has been moved back from January 15, 2009 to February 20, 2009.

This temporary postponement was made to accommodate employers after several business groups, including SHRM, the Society of Human Resource Management and the U.S. Chamber of Commerce objected to the new regulations.

Indications are that the Department of Justice will be strictly enforcing the new regulations, so employers would be wise to have all supplies on hand and implement E-Verify prior to the deadline. This will permit employers to work out any problems with their program, ahead of the deadline. 

The new E-Verify regulations implement an executive order issued by President George W. Bush in June 2008. Under the new regulations, federal contractors must use an electronic system such as E-Verify to ascertain that new employees working on federal contracts are legally permitted to work in the U.S.

E-verify is a joint venture between the Department of Homeland Security and the Social Security Administration to confirm the legal work status of new employees. The program is free for any employer to use.

One of the more controversial portions of the rule would require federal contractors to ascertain the legal work and immigration status of existing employees, working on some sensitive federal projects.

The new regulations require that the government cannot enter into a contract with a company that refuses to check the employees legal work status with E-Verify. However, the rule is not retroactive – it applies only to contracts signed after the new effective date of February 20, 2009.

The new E-Verify regulation, or a similar version, will probably prevail although it has been challenged in court by SHRM. “SHRM supports the use of an electronic employment verification system but E-Verify is far from ready to be mandated on all employers,” said attorney Nancy Hammer. She is the Manager of Regulatory and Judicial Affairs for SHRM. “We are pleased with the Justice Department’s decision to delay the effective date. We want to avoid the problems and confusion that will result if the rules go into effect before the court has a chance to evaluate their legality.”

Both parties must file final motions and briefs on the case in the U.S. District Court in Maryland by February 11, 2009.

Meanwhile, employers can get a jump on this deadline, by implementing E-Verify now. A number of states already require that every employer use E-Verify, while others only recommend it.