Localities Using Federal Funds May Need to E-Verify

By: Andrew McRoberts, Editor. This was posted Tuesday, October 13th, 2009

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On September 8, 2009, the Department of Homeland Security’s (DHS) rule mandating E-Verify use by certain federal contractors and subcontractors became effective. The E-Verify program, a partnership of the DHS and the Social Security Administration (SSA), is an internet-based system that allows employers to electronically verify the employment eligibility of certain employees, regardless of citizenship.

The new rule is applicable to Federal contractors and subcontractors who are awarded a contract, on or after September 8, 2009, which contains the Federal Acquisition Regulation (FAR) E-verify clause. The FAR E-Verify clause will be found in contracts with a period of performance longer than 120 days and a value above the acquisition threshold ($100,000) and will extend to most subcontracts for services or for construction with a value over $3,000.

Local governments will find the FAR E-Verify Clause in contracts involving Stimulus funds offered by the American Recovery and Reinvestment Act (ARRA) of 2009, H.U.D., and other various contracts involving federal funding. At a minimum, local governments must verify all existing and new employees assigned to the covered contract, but may choose to verify all current employees and all newly hired employees if they wish. Those awarded covered contracts are required to enroll in the E-Verify program within 30 calendar days of award date and have 90 days from the date of enrollment to initiate verification queries for relevant employees. For covered contracts, this same E-Verify Clause must be included in the local government prime contract and all sub-contracts.

For more information, please see Sands Anderson’s NC Law Blog for our previous E-Verify blog posts or USCIS’ “Frequently Asked Questions: Federal Contractors and E-Verify.” Please let Oliver Branch or Andrew McRoberts know if we can help you or your contractors with E-Verification.

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