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Companies holding federal contracts need to be aware of important deadlines regarding the new E-Verify regulations.

These regulations require that employers use the E-Verify system to determine that current employees – even long-term employees – working on federal projects can legally work in the U.S.

Some important deadlines to keep in mind: 

• The employer must enroll in E-Verify, or re-enroll as a federal contractor, within 30 days after a federal contract is signed
• Within 90 days, the employer must begin verifying the status of new hires
• Within 90 days, the employer must check the work status of all current employees who will work on the federal project
• Any subcontractors hired must also meet the same deadlines 

Even a company that has  used E-Verify for many years must re-enroll once a federal contract is signed. “It’s very important that employers understand that they have to be identified and enrolled as a federal contractor,” says Cynthia Lange, an attorney with Fragomen, Del Rey, Bernsen & Loewy, LLP.

This is a reversal in regulations, since in the past employers were prohibited from using E-Verify to determine the work status of any existing employees.

Business owners may be tempted to enroll in E-Verify immediately, but experts urge them to wait until a federal contract is signed. “Businesses that didn’t hold a new or current contract with the federal government will most likely have to re-enroll once a new contract is signed,” according Lange.

The mandatory use of E-Verify by federal contractors was first proposed by then-president George W. Bush in June 2008. In November 2008, the final regulations to enforce the executive order were issued. However, like a number of other executive orders, it was put on hold until President Obama took office.

President Barack Obama

The mandatory use of E-Verify by federal contractors was contested in court by a coalition of employer’s groups, including SHRM, the Society for Human Resource Management.

E-Verify is a joint venture between the Department of Homeland Security, the Social Security Administration and USICS, the Immigrations and Customs Service.

An new executive order requires federal contractors to post notices informing employees of their right to form unions and collectively bargain. This requirement must be included in every federal contract along with language giving the government the right to terminate/suspend the contract or even debar the contractor for noncompliance.       

Under Executive Order 13496, every federal contractor is required to post a notice informing employees of their rights to form unions and collectively bargain. This executive order overturns an order signed by President George W. Bush early during his administration.

Under the Executive Order signed by President Barack Obama on Friday, January 30, 2009, this requirement must be included in every federal contract along with language giving the government the right to terminate or suspend the contract if the employer does not comply.

In fact, employers who fail to post the required notice can be debarred for noncompliance.

The Executive Order signed by President Obama focuses specifically on (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.