Overview
This section establishes the requirement for Federal contractors to use the E-Verify system to confirm the employment eligibility of their workforce. It outlines the mandatory enrollment for contractors, specific verification timelines for new and existing employees, and the flow-down requirements for subcontractors.
Key Rules
- Mandatory Enrollment: Federal contractors must enroll in the E-Verify program and use it to verify the employment eligibility of all new hires in the United States.
- Employee Verification: Contractors must verify all employees assigned to the contract; however, they may elect to verify their entire U.S. workforce hired after November 6, 1986.
- Exceptions for Certain Entities: Institutions of higher education, state/local/tribal governments, and sureties may limit verification of new hires to only those assigned to the specific contract.
- Exempt Personnel: Verification is not required for employees holding active security clearances (Confidential, Secret, or Top Secret) or those with HSPD-12 credentials.
- Subcontractor Flow-down: Requirements must be included in subcontracts for construction and services, except for certain services related to Commercial Off-the-Shelf (COTS) items.
- Waiver Authority: Only the Head of the Contracting Activity (HCA) may waive E-Verify requirements in exceptional cases, and this authority cannot be delegated.
- Enforcement: Termination of a contractor’s E-Verify Memorandum of Understanding (MOU) by DHS or SSA triggers a mandatory referral to a suspending and debarring official.
Practical Implications
- Contractors must update HR onboarding procedures to ensure E-Verify is initiated for all new hires and perform an internal audit to identify existing employees assigned to a contract who require verification.
- Prime contractors face significant compliance risks if they fail to flow down these clauses to service or construction subcontractors, as non-compliance can lead to suspension or debarment from federal contracting.