Executive Order 13,465 and the final rule mandating federal contractors to use E-Verify became effective on September 8, 2009.  The executive order and final rule require federal contractors with projects in excessive of $100,000 and subcontractors with projects over $3,000 to use the E-Verify system to screen all new and existing employees assigned to the federal contract.

Covered Federal contractors not yet enrolled in E-Verify must:

• enroll in the E-Verify program within 30 days of a contract award;
• within 90 days of enrollment, verify newly hired employees within 3 business days after their start date;
• within the later of 90 days after enrollment or 30 days after the assignment of existing employees to the contract, verify existing employees assigned to the contract; and
• continue using E-Verify for the duration of the contract.

Federal contractors already enrolled in E-Verify for 90 days or more must:

• verify newly hired employees within 3 business days after the employee’s start date;
•  within 90 days after contract award or 30 days after the assignment of existing employees to the contract whichever is later, verify existing employees assigned to the contract; and
• continue using E-Verify for the duration of the contract.

Federal contractors already enrolled in E-Verify for 90 days or less must:

• within 90 days after enrollment, verify newly hired employees within 3 business days after their start date;
• within 90 days after contract award or 30 days after the assignment of existing employees to the contract whichever is later, verify existing employees assigned to the contract; and
• continue using E-Verify for the duration of the contract.

Any federal contractor who does not comply with Executive Order 13,465 and its final rule may be subject to penalties ranging from monetary fines to contractor debarment. 

WHAT SHOULD EMPLOYERS DO NOW?

Because of the potential financial risks posed by the E-Verify requirements, federal contractors should assess the impact of the new federal contractor E-Verify rule on their operations as well as their internal procedures for compliance.  They also should perform the following:

• determine if an existing or anticipated federal contract is subject to the Rule;
• determine which, if any, current employees will be subject to the Rule;
• determine if any exemptions apply or can be obtained;
• review or create company-wide E-Verify and I-9 programs, policies and procedures; and
• institute corrective actions where needed, particularly with regard to employees with unconfirmed employment authorizations.