On January 12, 2009, the United States Citizenship and Immigration Service (USCIS) issued a statement that the effective date of the rule requiring federal contractors and subcontractors to use E-Verify has been delayed to February 20th, 2009. After that date, most federal contractors and subcontractors doing work in the United States will have to start using E-Verify to confirm the employment authorization of employees working in the country. Currently, E-Verify is a voluntary system used by employers to verify employment authorization of new hires. For more information on E-Verify, go to http://www.dhs.gov/xprevprot/programs/gc_1185221678150.shtm . Pursuant to the new rule, contracts with the United States government after February 20th, 2009 will contain a provision mandating that the contractor verify the employment eligibility of new hires with E-Verify during the contract term. For more information about the rule, go to http://www.cozen.com/cozendocs/outgoing/alerts/2008/labor111708.pdf .

The new rule has been delayed due to an agreement made by the federal government in response to a lawsuit filed by the U.S. Chamber of Commerce and other groups in the District Court of Maryland. The lawsuit alleges that the rule violates the government's statutory, constitutional and administrative legal authorities. The plaintiffs request that the rule be declared illegal and void, or that the enforcement of the rule be permanently enjoined. According to Chamber of Commerce, the delayed implementation of the rule will also provide the incoming Administration an opportunity to review the efficacy of requiring the use of E-Verify. However, unless any federal court or administrative decisions are made in the interim, federal contractors and their subcontractors should prepare for the rule to be in effect on February 20, 2009.

www.cozen.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.