E-Verify for Contractors Legally Permissible
Posted Sep 04, 2009
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A U.S. District Court Judge recently denied a motion for summary judgment in a challenge to a regulation requiring all federal contractors to participate in the E-Verify system. This lawsuit was brought by the U.S. Chamber of Commerce, the Society for Human Resource Management (SHRM), the Associated Builders and Contractors, Inc. and the HR Policy Association. Judge Alexander Williams's August 25, 2009 decision is available online (PDF 74.9KB).
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E-Verify Mandatory for Government Subcontractors

The details of the U.S. Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services' (USCIS) E-Verify system, which is operated in conjunction with the U.S. Social Security Administration (SSA), were shared with MurthyDotCom and MurthyBulletin readers in our July 17, 2009 NewsBrief entitled, DHS to Withdraw No-Match Rule and in our May 30, 2008 NewsBrief, E-Verify Analysis - May 21, 2008 Update. DHS Secretary Napolitano issued a July 8, 2009 press release stating the Obama Administration's support for the new regulation which requires federal contract awards to be granted only to companies that participate in the E-Verify system. This regulation, which has now survived legal challenge, requires not only that federal contractors participate in E-Verify, but certain subcontractors, as well.
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New Regulation Effective September 8, 2009
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The new E-Verify regulation goes into effect September 8, 2009. E-Verify compares information from each employee's Form I-9 with information from the SSA's databases, to confirm the individual's work authorization. To reduce the occurrence of errors, E-Verify has been enhanced with access to DHS's naturalization records, as well as the U.S. Department of State's passport records. These additional sources of data may help reduce mismatches of naturalized U.S. citizens, born in foreign countries. The regulation will only apply to federal contractors and subcontractors who are awarded new federal contracts that contain a federal acquisition regulation (FAR) E-Verify clause. E-Verify is currently authorized by the U.S. Congress on a temporary basis, which must be renewed each year.
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Conclusion
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This impact of the E-Verify regulation on government contractors will have to be assessed over time. As contracts for new projects are awarded, or others renewed with the addition of the FAR E-Verify clause, greater numbers of employees will be screened by the E-Verify system. There are fears that mismatches and incorrect results will threaten the continued employment of individuals, and potentially be disruptive to various projects. Incorrect E-Verify results are expected to affect both U.S. citizens and those foreign nationals employed in the United States. Information on E-Verify will be made available to MurthyDotCom and MurthyBulletin readers, as it is made available.