Industry Groups Oppose Employment Verification President Bush’s order requiring federal contractors to verify the immigration status of employees is drawing protests from many business organizations. SBA’s Office of Advocacy joined the industry groups in opposing the rule that would require contractors to use the Homeland Security Department’s E-Verify system to check employees’ status. The U.S. Chamber of Commerce, Information Technology Association of America, Professional Services Council and the Council of Defense and Space Industry Associations were among those filing comments in opposition to the proposed rule, along with dozens of companies, large and small. Commenters questioned the accuracy of the system, which relies primarily on Social Security records to determine whether a person is eligible to work. They also expressed doubts that the system could handle the volume of requests from an estimated 168,000 contractors, more than twice as many companies as are currently using E-Verify. The Chamber said President Bush’s executive order is an illegal attempt “regulate immigration policy under the guise of procurement law,” and so is “an unauthorized exercise of regulation by the President.” It said Congress created E-Verify as a voluntary program, and the president has no authority to make it mandatory. The House has voted to continue the voluntary program while studying its effectiveness. Similar legislation is pending in the Senate. Further, the Chamber said E-Verify rules allow employers to use the system only to check on new hires, not current employees. The proposed rule, on the other hand, requires contractors to verify the status of all current and new employees who will work on a federal contract. Thomas Sullivan, chief of SBA’s Office of Advocacy, said the FAR councils have not adequately examined the costs small businesses would incur in complying with the rule. He urged that small firms be exempted until better cost data is developed. The proposed rule would not apply to purchases of commercial off-the-shelf items. Both the Chamber and the Professional Services Council said contracts for commercial services should also be exempt, or else some companies will withdraw from the federal market. The rule would require employment verification on all other contracts worth more than $3,000 that are performed in the United States. The requirement would flow down to subcontractors on services and construction awards if they are paid more than $3,000. Homeland Security Secretary Michael Chertoff said the president’s order is designed to get the federal government’s “house in order” by stopping illegal immigrants from working on federal contracts. Chertoff projected the final rule would be adopted late this year.