Legal Alert: Update - E-Verify Rule for Federal Contractors/Subcontractors Effective September 8, 2009


After months of delay, the rule requiring federal contractors and subcontractors to use E-Verify takes effect September 8, 2009. This rule applies to all new federal contracts beginning on September 8, 2009, and requires departments to amend some existing contracts. Federal contractors and subcontractors are now 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. This rule also extends to those companies receiving American Recovery and Reinvestment Act funds.

Please click here to view this Legal Alert.