E-Verify Requirement for Federal Government Contractors

Monday, 08 December 2008 06:23

Immigration

E-Verify is an internet based system operated by the Department of Homeland Security (DHS) and the Social Security Administration (SSA) that allows participating employers to verify the employment eligibility of its employees. [include link to our e-verify frequently asked questions].

The rule applies to federal contracts with a performance period of more than 120 days and with a value above $100,000. The rule also applies to subcontracts for services or construction with a value above $3,000.

Federal contracts awarded after January 15, 2009 will include a clause requiring the federal contractor to use E-Verify. Also, federal agencies with existing indefinite delivery or quantity contracts must amend their contracts if the remaining period of performance extends at least six months after the effective date of the rule.

Employers must enroll in E-Verify within 30 days of the contract award but employers have 90 days from enrollment to begin using the system. After the 90 day period new hires must be processed through E-Verify within three days of the hiring date.

Exemptions

• Contracts with a performance period of less than 120 days;
• Contracts with a value below $100,000;
• Contracts where all work is performed outside of the United States; or
• Contracts for commercially available off-the-shelf items (“COTS”). COTS items are commercial items sold in substantial quantities in the commercial marketplace and offered to the government in the same form available in the commercial marketplace, or with minor modifications. Nearly all food and agricultural products fall within the definition of COTS items. Federal contracts for food and agricultural products shipped as bulk cargo, but that otherwise would be considered COTS items, such as grains, oils and produce are also exempt. Subcontracts that only provide supplies, such as food.are also exempt

COUNSEL TO MANAGEMENT:

Management should review any current federal contracts and future solicitations for federal contracts to determine if and when the requirements of this rule will need to be implemented. Federal contractors and subcontractor required to use E-Verify face a more arduous process of verifying the employment eligibility of its employees.

Management must also remember that the use of E-Verify does not relieve employers from the I-9 requirements.

The goal of this article is to provide employers with current labor and employment law information. The contents should not be interpreted or construed as legal advice or opinion. For individual responses to questions or concerns regarding any given situation, the reader should consult with The Saqui Law Group at (831) 443-7100 in Salinas.