Client Bulletin #401

1.13.09

PLEASE NOTE: Since this was published, the Obama Administration has postponed the effective date of the E-Verify rule. The currect effective date is May 21, 2009. Constangy will keep you posted on all developments.

For a printer-friendly copy of this Client Bulletin, click here.

In response to a legal challenge by business groups, the federal government has announced that it will postpone the effective date of its new rule requiring federal contractors and subcontractors to use E-Verify.

The rule was originally scheduled to take effect January 15, but implementation will now be delayed until February 20.

Plaintiffs in the lawsuit, Chamber of Commerce of the United States of America v. Chertoff, include the U.S. Chamber of Commerce and the Society for Human Resources Management. The suit alleges that the mandatory use of E-Verify violates the Illegal Immigration Reform and Immigrant Responsibility Act.

In June 2008, President Bush amended Executive Order 12989, directing federal contractors to use the E-Verify system to ensure that all new hires and employees working on government projects are eligible to work in the United States. In November 2008, the federal government issued the Final Rules implementing the E-Verify requirement.

The regulations apply to federal contracts awarded and solicitations issued after January 15, 2009, worth at least $100,000 with a period of performance longer than 120 days. Subcontracts worth $3,000 or more flowing from such prime contracts are also covered. Contracts for commercially available off-the-shelf items and for work performed outside the United States are not covered by these requirements.

For more details, please see Constangy’s Client Bulletin on the final rules.

Constangy will keep you posted.

Constangy, Brooks & Smith, LLP has counseled employers on labor and employment law matters, exclusively, since 1946. A “Go To” Law Firm in Corporate Counsel and Fortune Magazine, it represents Fortune 500 corporations and small companies across the country. Its attorneys are consistently rated as top lawyers in their practice areas by publications such as Chambers USA, Super Lawyers, and Top One Hundred Labor Attorneys in the United States. More than 100 lawyers partner with clients to provide cost-effective legal services and sound preventive advice to enhance the employer-employee relationship. Offices are located in Georgia, Florida, South Carolina, North Carolina, Tennessee, Alabama, Virginia, Missouri, Illinois, Wisconsin, Texas and California. For more information, visit www.constangy.com.

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