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Court: Federal contractors covered by E-Verify rule

Federal contractors must comply starting Sept. 8

The requirement to use electronic employment verification for federal contractors has cleared a potential legal hurdle, easing the way for enforcement to start Sept. 8.

A district judge on Aug. 26 ruled against organizations that were attempting to stop the electronic employment verification requirement. The U.S. District Court for the Southern District of Maryland upheld the Homeland Security Department’s E-Verify requirement that ordered federal contractors to register and participate in the Internet-based electronic employment verification system. The lawsuit had been brought by the U.S. Chamber of Commerce and other parties.


Update: Plaintiffs file for injunction, appeal planned


The Obama administration previously had set the Sept. 8 enforcement date after three postponements. DHS Secretary Janet Napolitano announced in July that the department will start enforcing the rule Sept. 8.

E-Verify is a Web-based system run by DHS in partnership with the Social Security Administration. About 134,000 employers use the system, and 12 states have made using E-Verify a requirement for state workers, state contractors or both.

Employers use E-Verify by entering the Social Security numbers of prospective new hires and current employees. If there is a match, the employee is eligible for work. If not, the employee is advised to contact SSA to determine the source of the problem. DHS acknowledges a 3.9 percent rate of nonmatches in the system; however, critics contend the error rate is higher because the system is not designed to catch stolen or borrowed Social Security numbers.

About the Author

Alice Lipowicz is a staff writer for Federal Computer Week.

Reader comments

Thu, Sep 3, 2009 femtobeam USA

This system is not ready yet and after Sept. 8 if it goes into effect, it will give the subcontractors, like Boeing, of the DHS undue influence with their partners in communications security. With AT&T under investigation for selling time on the minds of persons to paying customers and the role that DHS has in security, it seems that only a system that can not be tampered with and is 100% accurate and verifiable can be put into place. DHS still has not been able to locate the source of fraud from Katrina. They will have no control and no ability to oversee re-routing on the networks they use and therefore no control over what happens with false information. Network security is critical now. Something as important as identity needs to be government owned and operated, not subcontracted to attorney led initiatives to control government funds and contracts. AutoLaw is what is required and NIST under Commerce where the real scientists are brought this suit for a reason. Securing the networks requires the President and other countries as well, not infighting between subcontractors of different Gov Agencies.

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