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New E-Verify Requirement for Federal Contractors Begins Today

September, 08 2009

After delays this summer to implementation due to legal challenges, new rules requiring federal contractors to use E-Verify are effective September 8, 2009. The rules follow up on an executive order issued in the waning months of the Bush administration that required development of an electronic system to verify authorization to work in the United States of federal contractors' employees.

Who is Covered?

Federal contractors who have contracts that are worth $100,000 or more to be performed over a term of 120 days or more. The E-Verify requirement also applies to sub-contractors for services or construction valued at $3,000 or more. Contracts for commercially available off-the-shelf items (so called "COTS" items) are not covered.

What is Required?

Covered federal contractors and sub-contractors must begin to use E-Verify to verify the work authorization of all newly hired employees. Many employers in South Carolina have already begun using E-Verify for new hires as a result of the state's Illegal Immigration Reform Act that, as of July 1, 2009, requires all private employers with 100 or more employees to use E-Verify or drivers' licenses to verify eligibility. The option to use drivers' licenses, while still permissible under state law, is no longer viable for covered federal contractors and sub-contractors due to the new rules.

In addition to verifying all new hires, covered federal contractors and sub-contractors must also use E-Verify to verify the work authorization of existing employees who will be directly performing work under the federal contract. This is an exception to the normal rule that employers may not use E-Verify to check the work authorization of current employees.

Questions?

If you would like more information about E-Verify or your organization's obligation to verify eligibility of employees to work in the United States, you may visit the U.S. Government's E-Verify website, see our previous article, or contact us.

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