The requirement that federal government contractors use E-Verify has been delayed until February 20, 2009. E-Verify is the electronic employment verification system operated by the U.S. Citizenship and Immigration Services. The regulations, which were put in place after President Bush issued an executive order back in June 2008 were set to go into effect on January 15, 2009. These regulations would require contractors to use the E-Verify system to determine if new hires and existing employees working on a government contract are authorized to work in the United States.

Last week, the government announced the delay of the effective date until February 20, 2009, allowing for a hearing on the merits of a lawsuit filed by the U.S. Chamber of Commerce, the Society for Human Resource Management, and others. The lawsuit was filed on the arguments that the government exceeded its authority because the program was always meant to be voluntary, that the executive branch does not have the authority to issue such a requirement since Congress was the one to establish the E-Verify program, and that the requirements conflict with some provisions of the Immigration Reform and Control Act (IRCA). The group that has filed the lawsuit has indicated that they will try to block the regulations from taking place if the district court judge does not rule on the motion prior to February 20, 2009. So, the delay could be even further extended. It has also been speculated that since the implementation date has been pushed until after the Presidential inauguration, the regulations may be rescinded by President-Elect Obama once he takes office.

We will keep you informed of the developments as they occur. In the meantime, you have a bit of breathing room before yet another time-consuming task hits your desk.

If you have any questions, or need further information on the topic covered in this Compliance Alert, please feel free to contact any one of us at Maly Consulting LLC.