For the third time, regulations requiring businesses with certain federal government contracts to use an electronic system to verify their employees are eligible to work in the U.S. has been delayed, this time until June 30, 2009.
The rule was originally to go into effect on January 15, 2009, but was delayed once following the filing of a lawsuit challenging the rule. Implementation was again delayed until May 21 to allow the Obama Administration to to review the regulations. That is the reason the rule as now been delayed until June 30.
The rule requires contractors and subcontractors to use E-Verify, an internet-based system that checks employee names and identification numbers against federal databases, for employees working on prime contracts of $100,000 or more with a performance period of more than 120 days and subcontracts of $3,000 or more for for services or construction if the prime contract is subject to the rule. Although verification that an employee is eligible to work in the United States normally occurs only with new hires, the regulation required contractors and subcontractors to also verify the eligibility of all existing employees directly performing work under the covered contract.
The announcement means that, at the earliest, only contract solicitations occurring on or after June 30, 2009, would be subject to the rule. For additional information on the rule and its scope, please contact Tim Gebhart.