Effective January 15, 2009, federal contractors must enroll in E-Verify, an internet-based system administered by the Department of Homeland Security (DHS) and the U.S. Citizenship and Immigration Services (USCIS), in partnership with the Social Security Administration (SSA), to verify that certain of their employees are eligible to work in the United States. The E-Verify program supplements the paper-based Form I-9 employment verification process.

KEY PROVISIONS

• VERIFICATION OF NEW AND CERTAIN EXISTING EMPLOYEES. Generally, federal contractors must verify that all new employees hired after January 15, 2009 and working in the United States and that all existing employees performing work on a federal contract in the United States are authorized to work in the United States. Contractors can also choose to verify employment for all existing employees hired after November 6, 1986. Specific timelines govern the enrollment and verification process.

• COVERED CONTRACTS. Generally, the E-Verify regulations apply to contracts that are awarded after January 15, 2009 to be performed in the United States, that are for an amount greater than $100,000 and that carry a performance term of 120 days or more. Also, a covered contract generally includes a subcontract (including purchase orders and modifications to purchase orders) for services or construction to be performed within the United States having a value of more than $3,000. Certain Indefinite-Delivery/Indefinite-Quantity (ID/IQ) contracts are also subject to E-Verify.

• EXCEPTIONS. Exemptions from various E-Verify requirements are specified for certain contracts, contractors, and employees. For example, employees who hold an active confidential, secret or top secret security clearance are entirely exempt from the verification requirements. Also, contracts for commercially available off-the-shelf items (COTS) or items that would be COTS but for minor modifications are not subject to the E-Verify regulations.

• LIABILITY. No person or entity participating in E-Verify is civilly or criminally liable under any law for any action taken in good faith reliance on information provided through the confirmation system. However, failure to comply with E-Verify requirements may subject federal contractors to civil money penalties, suspension or debarment.

Please contact Jacqueline R. Scott at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or send us an e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it for additional information about these developments and how they affect your company.

Additional summary materials are available on FortneyScott’s website at www.fortneyscott.com.