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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…)

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.

An amendment to Executive Order 12989 added by President George W. Bush on June 9, 2008,  will require all federal contractors to use the E-Verify system. The proposed regulations were published in the Federal Register on June 12, 2008. The presidential directive requires that federal contractors and their subcontractors use an electronic system to verify employment eligibility for all new hires.

Homeland Security Secretary Michael Chertoff designated E-Verify as the verification system of choice.

Under the new regulations, federal contractors and sub-contractors must (more…)