E-Verify is system that electronically verifies the employment eligibility of newly hired employees.
E-Verify is a partnership between the Department of Homeland Security (DHS) and the Social Security Administration (SSA). U.S. Citizenship and Immigration Services (USCIS) oversees the program.
E-Verify allows participating employers to electronically compare employee information taken from the Form I-9 (the paper-based employee eligibility verification form used for all new hires) against more than 425 million records in SSA's database and more than 60 million records in DHS immigration databases.
ABC and its members are strong opponents of the employment of unauthorized workers and has been a vocal advocate for comprehensive immigration reform. ABC also supports the E-Verify program as it was enacted by Congress in 1996 and subsequently reauthorized, i.e., a voluntary program expressly limited to the verification of social security numbers of new employees.
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The FAR Councils, and the U.S. Departments of Justice (DOJ) and Homeland Security (DHS) have agreed to again suspend implementation of a new rule that mandates that federal contractors must utilize the Employment Eligibility Verification (E-Verify) system for verification of all new and many existing employees.
The Obama administration, which has requested additional time to review the rule in light of pending litigation, announced last week that federal contracts awarded prior to Sept. 8, will not require contractors to use the E-Verify clause.
The rule is the subject of a legal challenge brought by ABC and several other employer associations. The challenge questioned the government’s authority to promulgate the regulation and sought an injunction from a federal court. The legal challenge echoed ABC’s previous comments on the rule, arguing that to require broader use of E-Verify would be illegal and expose contractors to needless liabilities.
ABC encourages members to consult with counsel on what steps, if any, your organization needs to take with regard to this regulation.
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: Civilian Acquisition Council & Defense Acquisition Regulations Council (FAR Councils)
: Final Rule
: November 14, 2008
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On November 14, 2008, the Civilian Acquisition Council and the Defense Acquisition Regulations Council (FAR Council) issued a final rule on E-Verify which requires federal contractors and subcontractors to use the federal E-Verify system to confirm the eligibility of their new, as well as many existing employees, to work in the United States.
Federal contractors and subcontractors will be required to use the E-Verify system for all new hires on contracts awarded after the rule’s effective date. The rule also applies to existing personnel “directly performing work” on federal contracts. Existing “indefinite-delivery/indefinite-quantity” contracts will also be modified to incorporate the provisions of the rule.
The new rule is intended to implement Executive Order 13465, which President Bush amended on June 6, 2008, in order to mandate that federal contractors agree to electronically verify the employment eligibility of their employees.
Under the governing statute, employees are only permitted to use E-Verify to validate new hires. Consequently, ABC and many other employer organizations believe the Executive Order and the majority of the new requirements exceed the President’s authority.
In December, ABC and its coalition partners challenged the authority of the government to promulgate this regulation and sought an injunction from a federal court. The legal challenge echoed ABC's position in previous comments on the rule, arguing that to require broader use of E-Verify would be illegal and expose contractors to needless liabilities.
*DELAY UPDATE: The federal government has agreed to suspend implementation of the E-Verify rule. The rule was scheduled to go into effect Jan. 15, 2009, but has now been pushed back to .
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For additional information, please contact the Regulatory Affairs department at regulatory@abc.org.