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Court Rules Federal Contractors Must Use E-Verify Beginning September 8, 2009


Today, a U.S. District Court issued a long-awaited decision in Chamber of Commerce of the United States of America v. Napolitano; a case in which SHRM, along with the U.S. Chamber of Commerce, American Council on International Personnel, HR Policy Association, and Associated Builders and Contractors, Inc., challenged the legality of a Bush Administration Executive Order requiring that federal contractors use E-Verify to check the employment eligibility of all newly hired employees, as well as all current employees directly working on a contract.

SHRM and the other plaintiffs challenged the legality of Executive Order 13464 and its implementing regulations arguing that it was neither legally justified nor practical for federal contractors to implement. Unfortunately, the court discounted the plaintiffs’ arguments deciding the case in favor of the government and ruling that the regulation should go forward.
In the wake of the court’s ruling, SHRM is reviewing its public policy options. However, absent an additional delay, the rule is scheduled to go into effect on September 8, 2009. This deadline means that most federal contracts awarded, as well as solicitations issued after September 8, 2009, must include a clause mandating use of E-Verify for all employees hired during the contract period and all existing employees assigned to perform work under the contract. The United States Citizenship and Immigration Services (USCIS) has published information and frequently asked questions on its website regarding application of the rule.  
In order to help prepare members for implementation of the rule, SHRM is developing a compliance webcast which will be available soon. Information about the webcast will be distributed as soon as a date is selected.  
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