Details of E-Verify Rules Are Released Under a proposed rule released June 12, some contracts will be exempt from President Bush’s order requiring contractors to verify the immigration status of their employees. The proposed rule, published in the June 12 Federal Register, says employer verification will not be required on contracts for commercial-off-the-shelf items, contracts below the $3,000 micro-purchase threshold, and work performed outside the United States. The requirement will apply to new task orders under many IDIQ contracts, and to subcontracts for services and construction worth more than $3,000. The proposed rule is open for public comment for 60 days. The new policy will become effective when a final rule is adopted, probably this fall. Under the president’s June 6 executive order, contractors will be required to use the Homeland Security Department’s Internet-based E-Verify system to check each employee’s identification against Social Security and other records. The Federal Acquisition Regulations councils estimated that 168,324 companies will be required to enroll in E-Verify, and an additional 3.8 million employees will be vetted through the system in the first year. They believe the rule will cost contractors at least $550 million over 10 years. The Homeland Security Department says more than 69,000 employers are currently using E-Verify. They have checked the status of 4 million workers so far this year. Use of the system will continue to be voluntary for all businesses except government contractors. The Government Accountability Office found that about 92% of queries “confirm within seconds that the employee is work authorized,” but about 7% cannot be confirmed immediately. However, both business groups and advocates for immigrants have complained about inaccuracies in the database that produced false positives, failing to recognize a legal worker. Homeland Security Secretary Michael Chertoff said the verification requirement for contractors was intended to get the government’s “house in order first, even as we work to continue to make sure that others in the private sector use this system.” President Bush’s executive order states, “Where a contractor assigns illegal aliens to work on Federal contracts, the enforcement of Federal immigration laws imposes a direct risk of disruption, delay, and increased expense in Federal contracting. Such contractors are less dependable procurement sources, even if they do not knowingly hire or knowingly continue to employ unauthorized workers.” Some members of Congress have proposed making the use of E-Verify mandatory for all employers, while others want to scrap it and develop a better system. The proposed rule is at http://edocket.access.gpo.gov/2008/E8-13358.htm. Comments are due Aug. 11. Editor’s note: An earlier version of this story was available June 13 to online subscribers.