Notice to DHS Contractors and Subcontractors on Compliance with E-Verify

Background/Notes: The President’s Executive Order 13788 Buy American and Hire American, issued on April 18, 2017, directs the Secretary of Homeland Security to issue new guidance and take other steps to protect the interests of United States workers in the administration of our immigration system. Accordingly, the Department of Homeland Security is issuing this Special Notice reminding contractors and subcontractors subject to the FAR, and with contracts containing the clause 52.222-54, Employment Eligibility Verification, that they are required to enroll in and use E- Verify. This FAR clause has been effective since September 8, 2009 and implements electronic employment eligibility verification requirement to strengthen long-standing Executive branch policy to only contract with federal contractors and subcontractors who employ individuals in the United States who are authorized to work in the United States. The Department of Homeland Security will rigorously promote and validate enrollment in and use of E-Verify by contractors and subcontractors in the coming months.

Complying with the E-Verify FAR Requirement to Verify Employees:Employers must verify all new hires, whether the new hire is assigned to a covered contract or not, as well as existing employees assigned to a covered contract. Note that some employees are exempt from the employment verification process, including Form I-9, under the E-Verify federal contractor rule. See the guide For Federal Contractors at https://www.uscis.gov/e-verify/federal-contractors. Employers may also choose to verify their entire workforce (all new hires, all existing employees assigned to the contract and all existing non-exempt employees throughout the entire company). Covered federal contractors are required to create an E-Verify case to confirm the identity and employment eligibility of each new employee within 3 days of hiring a new employee and each existing employees assigned to the contract within 30 calendar days. Covered federal contractors who elect to verify their entire workforce must create an E-Verify case to confirm the identity and employment eligibility of all employees within 180 calendar days.

Who is Affected by the E-Verify Federal Contractor Rule?

Federal Contractors: Only contracts that include FAR Clause 52.222-54 are affected and federal contracting officials include the clause in all solicitations and contracts that exceed the simplified acquisition threshold of $150,000, except those that are –
(a) Only for work that will be performed outside the United States;
(b) Only for a period of performance of less than 120 days; or
(c) Only for-

(1) Commercially available off-the-shelf (COTS) items;
(2) Items that would be COTS items, but for minor modifications;
(3) Items that would be COTS items if they were not bulk cargo; or
(4) Commercial services that are-

(i) Part of the purchase of a COTS item (or an item that would be a COTS item, but for minor modifications);
(ii) Performed by the COTS provider; and
(iii) Are normally provided for that COTS item.

Contact your contracting officer for questions regarding contract compliance.