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Legal Alert: Federal Contractors/Subcontractors Have Additional E-Verify Requirements

11/25/2008

Beginning January 15, 2009, federal contractors and subcontractors will be required to E-Verify not only all new employees, but also all existing employees who will be assigned to the contract unless certain exemptions apply. The new rule will not apply if a prime contract is 1) less than $100,000, 2) is for a commercially available off-the-shelf (COTS) item; or 3) is for less than 120 days in duration. Prime contractors must include a clause in their subcontracts requiring subcontractors to use E-verify if the value of the subcontract is more than $3,000 and is for services or construction. Covered contractors and subcontractors must enroll in the E-Verify program within 30 calendar days of the contract or subcontract award date. Other highlights of this new rule which was published this month in the Federal Register include the following:

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