08/ 20/ 2008
On June 6, 2008, President Bush signed an executive order that will require federal contractors to use the U.S. government's E-Verify system to confirm the legal status of their employees or risk losing their government contracts. While a deadline for federal contractors to sign up for E-Verify has yet to be determined, the planned changes are expected to take effect in 2009.
E-Verify basics
E-Verify is a free Internet-based system maintained by the Department of Homeland Security and the Social Security Administration. E-Verify checks the information provided on an employee's Form I-9 against databases maintained by DHS and SSA. Approximately 69,000 private employers voluntarily use E-Verify.
Executive order requirements
When the contracting rule takes effect, it will impact nearly every small entity in the federal contractor base, including suppliers of products who have contracts exceeding $3,000. Contracts that involve commercially available off the shelf items, however, are not covered.
Once the rule is in effect, contractors and subcontractors must enroll in E-Verify within 30 days of a contract award and verify the employment eligibility of both existing employees and any new employees hired during the course of the contract. (The rule does not, however, apply to employees hired before Nov. 6, 1986, as these employees are not subject to employment verification under the Immigration and Naturalization Act.)
To ensure compliance with the executive order, NFIB recommends that employers inventory their current federal contracts and subcontracts to determine which locations and employees will be affected. To determine if you are a federal contractor or subcontractor subject to the executive order, go to http://www.dol.gov/elaws/esa/ofccp/determine.asp.
NFIB also recommends that employers audit their Form I-9s by reviewing current Form I-9s on file for errors or missing information and correcting I-9s as appropriate. For additional resources on employment eligibility, visit http://www.nfib.com/object/IO_35590.html and http://www.nfib.com/object/IO_35350.html. If you are an NFIB member, you may also consult the NFIB Employment Law Hotline at 866-678-NFIB (866-678-6342).
