E-Verify -- Immigration Enforcement Comes to Federal Contracting

On November 14, 2008, the FAR Council issued a new rule and contract clause, effective January 15, 2009, requiring most federal contractors and subcontractors to use the Department of Homeland Security's E-Verify system to verify the employment eligibility of all new hires in the United States and all employees working in the United States on federal contracts and subcontracts. The contract clause will apply to all new federal contracts for more than $100,000 (except for very limited contracts for commercially available off-the-shelf items sold in substantial quantities in the commercial marketplace) and subcontracts for services or construction in excess of $3000 and includes a specific provision requiring referral for potential suspension or debarment for failure to comply with the rules governing the E-Verify program.