After several delays, the E-Verify regulations take effect today.  Under the regulations, new federal contracts and contracts which must be modified will include a requirement that the federal contractors and subcontractors use the E-Verify system to verify their employees’ eligibility to work in the United States.

A coalition of business groups led by the U.S. Chamber of Commerce are continuing their attempt to block the regulations.  The District Court of Maryland issued a decision upholding the regulations, but the group has filed an appeal with the Fourth Circuit Court of Appeals.  They have also requested a stay of the regulations pending the decision by the Court of Appeals.  As of yet the court has not issued a decision and the government has refused to voluntarily stay the regulations any further.

What does that mean for federal contractors and subcontractors?  For now, expect to see the E- Verify clause in your next contract with the government.  As a cost of doing business with the government, contractors will be required to enroll in E-Verify within 30 days of the contract award date.  Taft’s Labor & Employment attorneys are available to answer questions you have about the applicability of the regulations to your business. 

For more information about the E-Verify requirements, see Taft’s November 19, 2008 labor e-bulletin, "What is E-Verify and Does it Apply to My Contract?"