Federal Contractors Face New Employment Regulation

Posted by Administrator on June 20th, 2008

On June 9th, 2008 President Bush amended Executive Order 12989, which has to do with federal contractors’ compliance with immigration laws. Under the new amendment, all federal contractors must electronically verify their employees’ immigration status in order to do business with the federal government. This can be done using E-Verify, a free internet-based system run by the Department of Homeland Security and the Social Security Administration; federal contractors can validate new employees’ Social Security numbers against the SSA’s databases to ensure their workers are eligible for employment in the U.S.

Federal Contractors – What This Means for You

Federal contractors who are already in the midst of performing federal contracts will not need to verify their employees using E-Verify in order to keep their previously awarded contracts. However, going forward, contractors must agree to confirm all new hires’ eligibility. It’s important to note that this requirement extends to all new employees hired by the contractor, not just those who will be directly working on a federal contract.

If your company contracts solely with state and local governments, it may not be necessary to use E-Verify; different agencies will have different requirements with regard to employment eligibility. State and local contractors who choose to use E-Verify anyway may do so, of course. The system is free for any employer to use, but is only required for federal contractors.

Using E-Verify

To register for E-Verify, go to https://www.vis-dhs.com/EmployerRegistration/StartPage.aspx. You’ll be required to enter some information about your company, and to sign a Memorandum of Understanding agreeing to abide by the rules of the program.

E-Verify can only legally be used in a very small window of time. It is prohibited for use on existing employees; only new hires can be screened under the program’s current rules. Job applicants may not be screened using E-Verify. A new hire can only be screened once he or she has accepted an offer of employment, after which time the federal contractor has until three business days after the employee starts work to verify his or her employment status.

For more information on E-Verify and federal contractors, click here.