Publication

June 26, 2008Client Alert

Executive Order Requires Adoption of E-Verify by Federal Contractors

On June 6, 2008, President Bush issued an Executive Order requiring Federal Agencies to include a clause in all Federal contracts which requires contractors to use the E-Verify System.  http://www.whitehouse.gov/news/releases/2008/06/20080609-2.html

The E-Verify System requires that after completion of an I-9 form, an employer input certain information into a computerized system which checks whether the employee in question is using a social security number assigned to the name given by the employee and whether the employee is authorized to work in the U.S.  The E-Verify System requires that an employer enter into a memorandum of understanding requiring that specific procedures be followed by the employer when using the system.

The Department of Defense, the General Services Administration and the National Aeronautics and Space Administration have issued a proposed rule implementing the President’s Executive Order. http://edocket.access.gpo.gov/2008/pdf/E8-13358.pdf. The agencies will be accepting comments on the rule through August 11, 2008.

The proposed rule would require that all government contracts worth $3,000 or more for goods, services or construction contain a clause requiring the contractor to use the E-Verify System.  The rule would not apply to the purchase of goods which are commercially available off-the-shelf.  The proposed rule does not apply to grant agreements and cooperative agreements with the Federal government. 

The contractor would be required within 30 days of the contract award to enroll in the E-Verify program and use the program for all new hires during the term of the contract.  Furthermore, all employees working on the contract, even those that are not new employees, must be put through the E-Verify program. 

If you have questions, please contact José Olivieri at 414.225.4967, or by e-mail at jaolivieri@michaelbest.com, or Kelly M. Fortier at 414.277.3460, or by e-mail at kmfortier@michaelbest.com.

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