E-VERIFY PROGRAM POSTPONED UNTIL FEBRUARY 20, 2009

The Department of Labor (DOL) has postponed the date that federal contractors and subcontractors will be required to use the federal E-Verify Program to verify an employee's authorization status until February 20, 2009. The DOL postponement was issued to permit a ruling on the lawsuit recently filed by the U.S. Chamber of Commerce and several other employment-related associations. The lawsuit seeks a declaratory judgment that the Executive Order that President George W. Bush issued in June 2008, along with the implementing rule, are invalid and exceed the E-Verify Program's statutory authority.

 

As we previously reported (June 2008 E-Update; October 2008 E-Update; November 2008 E-Update), the E-Verify Program was created in 1996 by the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (IIRIRA). It is an Internet-based alternative to the I-9 Form verification process and works by verifying an employee's authorization status by checking records maintained by the Social Security Administration and the Department of Homeland Security. Pursuant to the IIRIRA, participation in E-Verify is voluntary and is to be used with new hires.

 

On June 6, 2008, however, President Bush signed an Executive Order mandating that certain employers with federal contracts utilize the E-Verify Program to confirm the employment eligibility of their workforce. On November 14, 2008, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council issued a Final Rule implementing the Executive Order and mandating compliance with the rule beginning January 15, 2009. The Final Rule expands the current E-Verify Program by making participation mandatory for certain federal contractors and by mandating the recertification of current employees who work on the federal contracts. (See our November 2008 E-Update for more information on the specifics of the Final Rule.)

 

On December 23, 2008, the U.S. Chamber of Commerce, and several other business organizations, filed a lawsuit in the U.S. District Court for the District of Maryland claiming that President Bush's Executive Order and the implementing Final Rule are invalid because the underlying statute does not authorize E-Verify to be a mandatory program and, further, does not authorize the President to require that the verification process be applied to current employees. The lawsuit also complains that President Bush exceeded his authority in issuing the Executive Order because the Order was legislative in nature. The lawsuit seeks a declaration that President Bush's Executive Order and the Final Rule are illegal and void. Pending a hearing on the merits of the lawsuit, the DOL agreed to suspend enforcement of the rule until February 20, 2009.

 

January 14, 2009


Shawe Rosenthal, LLP provides this publication for informational purposes, and it should not be construed or relied upon as legal advice. You should contact your Shawe Rosenthal, LLP lawyer to discuss any questions that you may have concerning your own situation.

 

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