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 After more than 15 months  of debate, the E-Verify mandate for federal contractors went into effect on September 8, 2009. The regulation also applies to most sub-contractors working on federal projects.

The new regulations apply to any business that signs or renews a federal contract worth $100,000 or more, on or after September 8, 2009. Federal contractors are also required to ensure that any sub-contractor they hire complies with the E-Verify regulations, which adds another layer of administration for many employers.

Employers may think they are covered because they already use E-Verify for all new hires, but they will be mistaken. The new regulations require employers to enroll anew in E-Verify, designating their business as a federal contractor.

A unique feature of the system is that employers must verify the work authorization of existing employees working on federal projects, as well as new hire. This means that even an employee who has been with the company for 50 years must prove that he or she is legally authorized to work in the U.S.

In a business where a single employee may handle varied tasks, it can be difficult to determine who is and is not working on a particular federal contract. In that case, the employer can verify the work authorization status of all existing employees.

However, if an employer chose to verify the work authorization status of only Hispanic employees, or only those who were non-citizens, that would be illegal discrimination based on race, color or national ancestry. The employer must re-verify all employees, or only those working on federal projects.

As part of the DHS E-Verify system, an employer can require that an employee or new hire who is a citizen use a Social Security card as one of the identity documents required on the I-9. Employers who do not use E-Verify still cannot dictate which identity documents an employee chooses to use, from the list provided on the I-9 form.

During July, both the U.S. House and Senate took measures that would require more employers to use E-Verify, including federal contractors and companies that benefit from federal stimulus spending.

The U.S. Senate passed an amendment to the 2010 Department of Homeland Security budget sponsored by Senator Jeff Sessions of Alabama, which will require federal contractors to use E-Verify, and extend that program for three more years.

According to Senator Sessions, this amendment will prevent illegal immigrants from being hired for construction projects funded by the federal stimulus packages. A similar bill was introduced in the House of Representatives.

The Society for Human Resource Management or SHRM has long opposed the mandatory use of E-Verify. SHRM argues that a biometric component such as fingerprints or retinal scan needs to be added to E-Verify. The problem is identity theft. Suppose a new employee presents documents for E-Verify as “John Turner”. E-Verify can check that John Turner can legally work in the U.S. However, there is no way for E-Verify to determine if the person presenting those documents is actually John Turner or not. SHRM and New York Senator Charles Schumer argue that E-Verify should not be used until the system can authenticate identity. Opponents claim that such a biometric system would be a violation of privacy.

While a number of states require employers to use E-Verify, federal contractors are still in limbo. In 2008, President George W. Bush signed an executive order that would have required federal contractors to implement E-Verify. However, it has been delayed and is currently being challenged in court by SHRM and other employer groups.

Nevertheless, many employers continue to voluntarily adopt the E-Verify system. E-Verify compares information provided by the (more…)

The Society of Human Resource Management (SHRM) has successfully petitioned the Obama administration to delay implementation of a law requiring some employers to use E-Verify when checking on new employees’ immigration and work status.

SHRM’s director of government affairs, Mike Aitken, said the human resources professionals’ organization is hoping that the Obama team’s delay “signals an interest, on the part of the government, to re-evaluate the rule.” According to the rules approved under the Bush administration, contractors would be required to use E-Verify to insure that any employees on federal projects were legally allowed to work in the U.S.

The original date for plan compliance was January 1, 2009. The new deadline is May 21, 2009.

Mr. Aitken said the SHRM was concerned (more…)

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…)

Beginning January 14, 2009, a new rule requires federal contractors to use an electronic system like E-verify to check the immigration status and employment eligibility of every new employee, and old employees on certain sensitive federal projects.

A suit filed by SHRM, the Society for Human Resource Management, seeks to overturn that law. SHRM has filed a federal suit with four other employer organizations to block the rule. In addition to SHRM, the December 23, 2008 suit was filed on behalf of the U.S. Chamber of Commerce, Associated Builders and Contractors, American Council on International Personnel and the HR Policy Association.

SHRM has asked the Bush administration to withdraw the proposed rule from consideration. The administration has declined, however, and employers should continue to use E-verify to comply with the law.

Under an executive order from President Bush, federal contractors and subcontractors (more…)