E-Verify for Federal Contractors

November 15, 2008 – Effective January 15, 2009, most Federal Contractors and subcontractors need to begin using the E-Verify system in addition to the standard I-9 procedures, as outlined in the final rule published on November 14, 2008 for the Department of Defense, General Services Administration, and National Aeronautics and Space Administration.

E-Verify is an internet-based system that is operated by the Department Homeland Security (DHS) in cooperation with the Social Security Administration (SSA) to allow employers to electronically verify the employment eligibility of individuals that they have hired. Use of the E-Verify system requires an online registration and is free to all companies.

Beginning on January 15, 2009, all new Federal contracts over $100,000 will include the E-Verify clause and amendments will be made to existing contracts to include the clause. The E-Verify clause requires that most Federal contractors use E-Verify to verify all new hires. Companies are also required to verify all existing employees working on Federal contracts.

The new regulation includes the following requirements for Federal contractors:

• Each Federal contractor must enroll online in E-Verify
• Enrollment must occur within 30 calendar days of the Federal contract award.
• Within 90 days of enrollment in E-Verify, Federal contractors must be verifying all new employee hires within the United States using E-Verify within 3 days of the employee’s hire date.
• Verify all existing employees assigned to the Federal contracts within 90 calendar days after the date of enrollment or within 30 calendars of the employee’s assignment to the federal contract (whichever date is later). Exceptions include “employees who hold security clearance of confidential, secret, or top secret”, “employees for whom background investigations have been completed and credentials issued pursuant to Homeland Security Presidential Directive (HSPD) -12”, and employees hired prior to November 6, 1986.
• Include the E-Verify clause in all subcontracts of $3,000 or more that are involved with the Federal contract. Exceptions include “commercially available off-the-shelf (COTS) items”, “work that will be performed outside the United States”, or “for a period of performance of less than 120 days”.

If Federal contractors are not currently using E-Verify as part of their I-9 process for verifying employment eligibility within the 50 United States, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands, procedures should be put in place prior to January 15, 2009 to ensure a smooth transition. All Federal contractors who are currently using E-Verify should make sure that there status reflects that they are a Federal contractor.

Federal contractors can register for E-Verify , update their status as a Federal contractor, or sign up for an upcoming informational seminar on E-Verify at: www.dhs.gov/everify

Click here to review the Department of Defense, General Services Administration, and National Aeronautics and Space Administration Final Rule