After several prior delays, the E-Verify rule for federal contractors is scheduled to take effect next week on September 8, 2009. E-Verify is an Internet-based system that allows participating employers to electronically verify the employment eligibility of employees.
Beginning on September 8, 2009, employers who are federal contractors with a qualifying contract are required to enroll in E-Verify. A qualifying contract is one that:
- Is awarded on or after the September 8, 2009 effective date;
- Exceeds the minimum threshold of $100,000;
- Has a performance period in excess of 120 days; and
- Contains the E-Verify clause specified by the rule.
In general, existing federal contracts awarded prior to September 8, 2009 will NOT subject an employer to the E-Verify requirement.
At the present time, employers who are not federal contractors are not affected by E-Verify.
For those employers required to participate in E-Verify, the rule obligates a federal contractor to enroll in E-Verify within 30 calendar days after being awarded a qualifying contract.
Initially, employers who are new to E-Verify will have 90 calendar days to verify employment eligibility of existing employees who will be working on the contract as well as all new hires. After this transition period, participating employers will be required to initiate verification of all newly-hired employees within three (3) business days after their start date.
Failure to comply with the E-Verify requirement may result in the suspension or cancellation of a federal contract and/or debarment from future contracts.
If you are a client and have questions about E-Verify, please contact a KZA attorney at (702) 259-8640.