Federal Contractors Now Required to Use Electronic Employment Verification

June 10, 2008

President Bush has signed an executive order requiring businesses with contracts with the federal government to use an electronic system to verify that their employees are eligible to work in the U.S.

Known as E-Verify, the internet-based system checks names and identification numbers against federal databases. Although the system has been available for a number of years, it is not mandatory. By requiring its use by federal government contractors, thousands, if not millions, of employers and employees will be affected.

All employers must already fill out I-9 forms for new hires, which requires employees to provide certain documents to demonstrate they can legally work in the country. With E-Verify, employers enter the employee's name and identification number into a web-based application. That program checks records in the Social Security database and the Department of Homeland Security's immigration databases to make sure the number is legitimate and matches the name submitted. If there is a mismatch, the employer provides the employee with information generated by E-Verify on how to challenge and resolve the discrepancy.

The executive order was signed June 6 but was not announced by the White House until June 9. The order applies to future government contracts and, as with the I-9 requirement itself, the electronic verification process applies only to new hires. For more information, feel free to contact DEHS.