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ARTICLE · 09 DECEMBER 2008

DHS Mandates Federal Contractors Participate In E-Verify

On Nov. 14, 2008, the U.S. Department of Homeland Security (DHS) issued its final rule requiring the use of E-Verify by all federal contractors and subcontractors. The rule will take effect on Jan. 15, 2009.

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On Nov. 14, 2008, the U.S. Department of Homeland Security (DHS) issued its final rule requiring the use of E-Verify by all federal contractors and subcontractors. The rule will take effect on Jan. 15, 2009.

The E-Verify system, which is voluntary for private employers not engaged in government contracts, is the federal government's method of electronically verifying that employees are authorized to work in the United States.

Varying requirements apply to contractors and subcontractors based upon the amount of the contract, length of the contract, and whether the employer has previously enrolled in the E-Verify system. However, the rule does not apply to contracts for commercially available off-the-shelf items, or items that would be commercially available off-the-shelf but for minor modifications. The new rule also contains a provision allowing waiver of the E-Verify requirement in "exceptional circumstances."

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