Court Rules Federal Contractors Must Use E-Verify Beginning September 8, 2009

A U.S. District Court issued a long-awaited decision in Chamber of Commerce of the United States of America v. Napolitano; a case in which SHRM, the U.S. Chamber of Commerce, American Council on International Personnel, HR Policy Association, and Associated Builders and Contractors, Inc., challenged the legality of a Bush Administration Executive Order requiring that federal contractors use E-Verify to check the employment eligibility of all newly hired employees, as well as all current employees directly working on a contract.

The plaintiffs challenged the legality of Executive Order 13464 and its implementing regulations arguing that it was neither legally justified nor practical for federal contractors to implement. The court discounted the plaintiffs’ arguments deciding the case in favor of the government and ruling that the regulation should go forward.

Absent an additional delay, the rule is scheduled to go into effect on September 8, 2009. This deadline means that most federal contracts awarded, as well as solicitations issued after September 8, 2009, must include a clause mandating use of E-Verify for all employees hired during the contract period and all existing employees assigned to perform work under the contract. The United States Citizenship and Immigration Services (USCIS) has published information and frequently asked questions (http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=cb2a535e0869d110VgnVCM1000004718190aRCRD&vgnextchannel=534bbd181e09d110VgnVCM1000004718190aRCRD ) on its website regarding application of the rule.