District Court Upholds Mandatory E-Verify Rule for Federal Contractors and Attorneys Seek Emergency Injunction on Federal Contractor E-Verify Rule.

This is a reminder for federal contractors and subcontractors that effective September 8th, 2009, they will be required to use the E-Verify system to verify their employees’ eligibility to work in the United States if their contract includes a Federal Acquisition Regulation (“FAR”) E-Verify Clause. In July, the U.S. Department of Homeland Security (“DHS”) Secretary Janet Napolitano strengthened employment eligibility verification by announcing the Administration’s support for the regulation that will award federal contracts only to employers who use E-Verify to verify employee work authorization.

In late August, The United States District Court for the District of Maryland, Southern Division, granted Defendants’ cross- motion for summary judgment in Chamber of Commerce of the USA v. Napolitano, a case challenging the mandatory E-Verify rule for federal contractors.

On September 1st, 2009, Counsel in Chamber of Commerce of the U.S.A. et. al. v. Napolitano (S.D.MD, August 26, 2009) sought an emergency injunction seeking yet another delay against the district court’s decision regarding the implementation of the Federal Contractor E-Verify Rule.

More Information About E-Verify and Federal Contractors Obligations:

Under these new guidelines, Employment Eligibility Verification will extend the use of the E-Verify system to covered federal contractors and subcontractors, including those who receive American Recovery and Reinvestment Act Funds. Applicable federal contracts awarded and solicitations issued after September 8th, 2009 will include a clause requiring government contractors to use the E-Verify system.

Companies awarded a contract with the E-Verify clause on or after September 8th will be required to enroll in E-Verify within 30 days of the contract award date. E-Verify must be used to confirm that all new hires, whether employed on a federal contract or not (and existing employees directly working on these contracts) are legally authorized to work in the United States.

More than 145,000 participating employers at nearly 550,000 worksites nationwide currently use E-Verify to electronically verify their workers’ employment eligibility. Since October 1st, 2008, more than 7.6 million employment verification queries have been run through the E-Verify system and approximately 97 percent of all queries are now automatically confirmed as work-authorized within 24 hours or less.

More information on the program is available on the “E-Verify” Web site link (www.dhs.gov/e-verify) and support is available by calling toll free (888) 464-4218.