DHS Imposes E-Verify on Government Contractors then Punts Implementation to New Administration - The Department of Defense, Government Services Administration and NASA, have adopted new rules requiring most federal contractors and their subcontractors to use DHS’ E-Verify system to determine employment authorization for all new employees and for existing employees who are performing contracts. The requirement applies to prime contracts entered into after the effective date of the rules (currently Ferbuary 20, 2009) and which are: 1) valued at more than $100,000 and; 2) take more than 120 days to perform. It also applies to subcontractors providing services or construction valued at $3000 or more. The rule implements a Preseidential Executive Order issued June 6, 2008. USCIS has issued an FAQ on the new rules.

E-Verify uses Social Security Administration and DHS databases to perform an online real-time check of employment authorization based on an employee’s name and Social Security number. Unfortunately, the SSA database is rife with errors to a degree that in 2008 a federal court forced delay of a DHS policy requiring employers to terminate employees when notified of a “no match” in the SSA’s data base.

The E-Verify requirement is being imposed through amendment of the Federal Acquisition Regulation (FAR) which would have required insertion of compliance language in new federal prime contracts entered after January 15, 2009. In light of a legal challenge filed by the U.S. Chamber of Commerce, however, the Bush Administration has suspended implementation until February 20, 2009. This would, presumably, afford the incoming Obama Administration an opportunity to delay implementation further, if it chose to, or to kill the program altogether. The President-Elect expressed favor for an electronic employment verification system in the Senate in 2006, subject to a five year phase-in and the establishment of improvements in accuracy and privacy.

USCIS recently announced that 100,000 U.S. employers have enrolled in E-Verify.

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