E-Verify, formerly known as the Basic Pilot Program, is an internet-based system operated by the Department of Homeland Security in partnership with the Social Security Administration. E-Verify allows employers to electronically verify the employment eligibility of their newly hired employees.While in office, President Bush signed Executive Order 12989 requiring certain federal contractors to use an electronic employment eligibility verification system. Executive Order 12989 was amended by Executive Order 13465 on June 6, 2008. Specifically, Executive Order 13465 states: “Executive departments and agencies that enter into contracts shall require, as a condition of each contract, that the contractor agree to use an electronic employment eligibility verification system designated by the Secretary of Homeland Security to verify the employment
eligibility of: (i) all persons hired during the contract term by the contractor to perform employment duties within the United States; and (ii) all persons assigned by the contractor to perform work within the United States on the Federal contract.” Then Secretary of Homeland Security, Michael Chertoff, designated E-Verify as the electronic employment eligibility verification system to be used.

The final rule implementing Executive Order 13465 requires federal contractors to agree, through language inserted into their federal contracts, to use E-Verify to confirm the employment eligibility of all persons hired during a contract term, and to confirm the employment eligibility of federal contractors’ current employees who perform contract services for the federal government within the United States. Specifically, federal contractors with contracts worth over
$100,000 and that have a performance period of over 120 days will have to use E-Verify to confirm the employment eligibility of all persons hired to work on the contract, and all new and existing employees directly performing work on the contract. Additionally, prime contractors must include a clause mandating the use of E-Verify in all subcontracts over $3,000 for services or construction. Contracts that are for commercially available off-the-shelf items are exempt from the rule. Companies awarded a contract with the federal government will be required to enroll in E-Verify within 30 days of the date of the contract award. Companies then must initiate verification of existing employees or new hires assigned to the federal contract within 90 days of enrollment in E-Verify. After the 90-day period, companies must verify each newly hired employee within 3 business days of their start date.

The implementation of this final rule has been delayed several times and is the subject of litigation. Currently, however, federal contracts awarded and solicitations issued after September 8, 2009, will include a clause committing federal contractors to use E-Verify.

For more information, please go to http://www.uscis.gov.