Sunburst Software Solutions Inc

From the Associated Builders and Contractors, Inc. Newsletter dated 11/19/2008

The Civilian Acquisition Council and the Defense Acquisition Regulations Council Nov. 14 issued a final rule on Employment Eligibility Verification (E-Verify), which requires federal contractors and subcontractors to use the federal E-Verify system to confirm the eligibility of their new, as well as many existing employees, to work in the United States.

Federal contractors and subcontractors will be required to use the E-Verify system for all new hires on contracts awarded after the rule’s effective date of Jan. 15, 2009. The rule also applies to existing personnel “directly performing work” on federal contracts. Existing “indefinite-delivery/indefinite-quantity” contracts will also be modified to incorporate the provisions of the rule.

The new rule is intended to implement Executive Order 12989, which President Bush amended on June 6, 2008, in order to mandate that federal contractors agree to electronically verify the employment eligibility of their employees.

Under the governing statute, employees are only permitted to use E-Verify to validate new hires. Consequently, ABC and many other employer organizations believe the Executive Order and the majority of the new requirements exceed the President’s authority. A legal challenge of the new requirements is anticipated and it is likely that the effective date of the requirements will be delayed pending the outcome of that challenge. ABC is reviewing the new requirements and will provide further guidance once completed.


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