Federal Contractors Required to Use E-Verify System Effective January 15, 2009

On November 14, 2008, the U.S.Department of Homeland Security (DHS) published the final rule implementing the Executive Order that requires all federal contractors, and certain subcontractors, to use the E-Verify system to verify their employees' authorization to work in the U.S. beginning on January 15, 2009.

E-Verify is an online database jointly administered by DHS and the Social Security Administration (SSA) that enables participating employers to verify the work authorization of newly hired employees by checking the information employees provide on their Form I-9 against both DHS and SSA databases. Although participation in E-Verify is voluntary in principal, certain federal contractors and their subcontractors are now obligated to participate as a condition to performing under their government contracts. Also, certain states now have laws, which have been challenged in some instances, that compel private employers to participate in E-Verify.