On November 14, 2008, the Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) published a final rule requiring certain federal government contractors to use the E-Verify system to confirm their employees’ eligibility to work in the United States. The rule will be effective January 15, 2009. The final rule implements Executive Order 12989, as amended by President George W. Bush on June 6, 2008.
What Is E-Verify?
E-Verify (formerly known as the Basic Pilot/Employment Eligibility Verification Program) is an Internet-based system operated by the Department of Homeland Security (DHS), in partnership with the Social Security Administration (SSA), that allows participating employers to verify the employment eligibility of their newly hired employees in connection with the I-9 process. The federal government takes the position that E-Verify is the best means available for determining employment eligibility of new hires and the validity of their Social Security Numbers, although many outside these agencies have questioned the accuracy of the databases used by the program.
When Will the New Rule Take Effect?
Federal contracts awarded and solicitations issued after January 15, 2009, will include a clause committing the federal government contractor to using E-Verify, based on the time lines described below. Federal agencies must amend existing indefinite-delivery/ indefinite-quantity contracts on a bilateral basis to include the clause for future orders if the remaining period of performance extends at least six months after the effective date of the rule. Affected contractors must enroll in E-Verify as a federal contractor, or if they are already enrolled, they must update their company profi le as a federal contractor. Once the contract ends and if the company no longer has any qualifying contracts, then the company should update its company profi le in E-Verify to reflect that it is no longer a federal contractor.
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