Virginia Lawyers Weekly

The federal government has again delayed implementation of a rule requiring all companies working on federal contracts to electronically check the legal working status of their employees through the Department of Homeland Security’s E-Verify system.

The rule was originally set to go into effect on Jan. 15, then it was pushed back by DHS to Feb. 20 due to a lawsuit filed last month by the U.S. Chamber of Commerce and a number of other groups. Now the rule won’t be enacted until May 21 at the earliest.

The delay drew praise from Chamber officials, who have urged President Barack Obama to eliminate the rule altogether.

“The federal government agreed that the new administration needs time to re-think mandatory E-Verify use, particularly in light of the stressed economy,” said Robin Conrad, executive vice president of the Chamber’s National Chamber Litigation Center. “We are hopeful that the incoming administration will agree that E-Verify is the wrong solution at the wrong time.”

The rule requires any company on a federal contract to use an Internet-based system that checks the names and Social Security numbers of all its workers against Social Security Administration and DHS data. The system either verifies that the information matches or gives the employer a “tentative non-conformation.”

It is up to the employee to resolve any mismatch with Social Security Administration officials. If the mismatch is not resolved and the employee remains with the company, the employer faces losing its federal contracts.

Currently, the use of E-Verify is voluntary and applies only to new hires. The lawsuit challenges an Executive Order making E-Verify mandatory for federal contractors with projects exceeding $100,000 and for sub-contractors with projects exceeding $3,000.

The lawsuit, Chamber of Commerce, et al v. Chertoff, et al., is pending in federal court in Maryland.

— Lawyers USA

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