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Final rule issued on E-Verify

The DOD, GSA and NASA jointly released the final rule regarding E-Verify that amended the Federal Acquisition Regulations (FAR). The final rule was released on November 14th and will apply to all new contracts written after January 15th, 2009.

The regulations estimate that over 168,000 contractors and subcontractors will be affected by these regulations. The total impact to the contact community for the first year is estimated at over $245 million. For federal contractors that have 100 employees they should expect to incur $5,615 in expenses within the first year, related to complying with the new regulations.

A federal contactor could be exempt from complying with E-Verify final rule if they meet the following exemptions:

  • Entities with contracts less $100,000
  • Subcontractors with less than $3,000
  • Contractors supplying commercially available off-the-shelf (COTS) items
  • COTS items with minor modifications
  • Subcontractors who provide supplies rather than services or construction

 

Federal contractors that do not meet the exemptions listed above will have to choose how to comply. There is a 90 day or 180 day window in which a federal contractor that receives a new contract, must process their internal employees. If the federal contractor only wants to verify existing employees (hired after November 6,1986) assigned to the contract, the verification must be complete within 90 days of enrolling in E-Verify, however if the federal contractor chooses to verify all existing employees they will be given 180 days to complete the verification of all employees.

In addition to verifying the existing employees federal contactors will need to E-Verify all new hires. Institutions of higher education, state or local government, government of a federally recognized Indian tribe, or a surety performing under a takeover can choose to only E-Verify new employees that are assigned to the contract.

Select the link below to download a copy of the final rule on E-Verify.

http://www.nafsa.org/_/Document/_/final_rule_on_e_verify.pdf