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Proposed Rule Requires Federal Contractors to Use E-Verify
A proposed rule by the Department of Homeland Security in response to a June 6 Executive Order (EO) issued by President Bush would have an impact on nearly every small entity in the federal contractor base, except those providing commercially available off-the-shelf items.
This proposed rule, which is expected to take effect in 2009, would require federal contractors to enroll in the E-Verify program within 30 calendar days after the contract award. The employer must then verify current employees who are assigned to the contract and performing work in the U.S.
All new employees of the contractor hired after the federal contract award must be E-Verified within three days of being hired, regardless of whether the new hires are assigned to the contract.
Under the proposed rule, the federal contractor must include a written clause in its subcontracts, requiring subcontractors (with subcontracts in excess of $3,000) to use the same E-Verify procedures for their current employees and new hires working in the U.S.
While the majority of NAHB members do not engage in federal contract work, NAHB will review and monitor the rule-making process to identify the impact of its provisions on NAHB membership. For example, it is likely that all NAHB members who are currently working on military housing privatization projects will need to comply with this requirement.
With the rule not yet final and open for public comment for 60 days, contractors are not likely to see its requirements in their bidding documents or federal contracts for several months.
For more information on the E-Verify program, click here. To register your company to use the E-Verify program, click here.
For more information, e-mail Jenna Hamilton at NAHB, or call her at 800-368-5242 x8407; or contact David Crump, x8491.
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