Certain federal contractors and subcontractors who have contracts covered under Federal Acquisition Regulation 1.108 (FAR) will be required to utilize the E-Verify system which is administered by the U.S. Department of Homeland Security.
This rule requires federal contractors to agree, through language inserted into their federal contracts, to use E-Verify to confirm the employment eligibility of all persons hired during a contract term, and to confirm the employment eligibility of federal contractors’ current employees who perform contract services for the federal government within the United States.
Until a contractor/subcontractor is notified that the FAR clause has been included into their contract by the government contracting agency, the contractor/subcontractor is not required to begin using E-verify.
The rule applies to prime contracts with a dollar threshold of $100,000 or greater and sub-contracts (only if the prime contract includes the E-verify clause) and the subcontract is for services or for construction with a dollar threshold of $3,000 or greater. Additionally, the rule will apply to indefinite-delivery/indefinite-quantity contracts modified after the Sept.8th, 2009 effective date. The FAR rule provides that if the remaining period of performance extends at least six months after the final rule effective date, and the amount of work or number of orders expected under the remaining performance period is substantial, then the contract should be modified to include the clause.
If a company has not yet enrolled in E-Verify, then they have 30 days from the date of contract award to enroll and 90 days from the date you enroll with E-Verify to initiate verification queries for current employees who will be working on the contract and to begin using the system to verify newly hired employees.
After this 90-day phase-in period, the company will be required to initiate verification of each newly hired employee within 3 business days after their start date.