Executive Order Requires Federal Contractors to Use E-Verify
President Bush on June 9 issued an Executive Order (EO) that will require all federal contractors to use the E-Verify employment verification system once they enter into a contract with an executive department or agency. Under the EO, employers who contract with the federal government would need to verify the work authorization status of all persons hired during the contract term by the contractor to perform employment duties within the United States; and all persons assigned by the contractor to perform work within the United States on the federal contract. The EO goes on to define a “federal contractor” as an entity who:
(1) Directly or indirectly (e.g., through an affiliate), submits offers for or is awarded, or reasonably may be expected to submit offers for or be awarded, a Government contract, including a contract for carriage under Government or commercial bills of lading, or a subcontract under a Government contract; or
(2) Conducts business, or reasonably may be expected to conduct business, with the Government as an agent or representative of another contractor.
Federal contractors would also have to require in their subcontracts that all of their subcontractors comply with this rule.
While most NAHB members do not engage in federal contract work, NAHB is continuing to review the EO, and the subsequent rule for its implementation, to identify the scope of the provisions. 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. The rule is expected to be open for public comment for 60 days and will then need to be finalized. Thus, federal contractors are not likely to see this requirement appear in the contracts they bid for or enter into for a few months. NAHB will continue to monitor the progress of this rule in order to determine the potential impact on association members.
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, please contact either Jenna Hamilton, NAHB Government Affairs, at 800-368-5242, x8407 or David Crump, NAHB Legal Affairs, at x8491.
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