Who is Affected by the E-Verify Federal Contractor Rule

The E-Verify Federal Contractor Rule only affects Federal contractors who were awarded a new contract on or after the effective date of the rule, September 8, 2009, that includes the Federal Acquisition Regulation (FAR) E-Verify clause (found at 48 C.F.R., Subpart 22.18 ). Some existing Federal contracts may also be bilaterally modified to include the FAR E-Verify clause after the effective date of the rule.

Government contracting officials, not E-Verify, decide if a Federal contract qualifies for the Federal Acquisition Regulation (FAR) E-Verify clause. To qualify, the contract must meet the following criteria:

  • The contract was awarded on or after the E-Verify Federal contractor rule effective date of September 8, 2009, and includes the FAR E-Verify clause;
  • The contract has a period of performance that is for 120 days or more;
  • The contract’s value exceeds the simplified acquisition threshold;
  • At least some portion of the work under the contract is performed in the United States. 

FAR Subcontractors

The E-Verify Federal contractor rule requires certain Federal prime contractors to require their subcontractors to use E-Verify when:

  • The prime contract includes the Federal Acquisition Regulation (FAR) E-Verify clause;
  • The subcontract is for commercial or noncommercial services or construction;
  • The subcontract has a value of more than $3,500; and
  • The subcontract includes work performed in the United States. 

Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Government contracting officials may modify IDIQ contracts on a bilateral basis to include the FAR E-Verify clause for future orders, in accordance with FAR 1.108(d)(3), when:

  • The remaining period of performance extends at least six months after the effective date of the rule; and
  • The amount of work or number of orders expected under the remaining period of performance is substantial.

If the FAR E-Verify clause is included in a modified IDIQ contract, the employer must participate in E-Verify within 30 calendar days of the modification date.

Federal Contractor E-Verify

Learn about timelines for enrollment, how to use the program, how to verify new and existing employees, and exemption and exceptions for federal contractors who have been awarded a federal contract with the FAR E-Verify clause. This webinar, useful for federal contractors and subcontractors affected by the E-Verify federal contractor rule, is eligible for 1 professional development credit through SHRM and HRCI.

Estimated duration: 1 hour.


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