Suspension of E-Verify Rule for Federal Contractors Extended Until May 21, 2009

January 30, 2009

On December 8, we notified you that the Department of Homeland Security had issued final rules requiring federal contractors to use E-Verify, effective January 15, 2009 (see news item). We further advised you on January 9 of the suspension of the E-Verify rule until February 20, 2009 (see news item).

In response to President Obama’s general order to delay the implementation of any Bush Administration proposals in the pipeline, the Department of Homeland Security has now announced a further delay in the implementation of mandatory use of E-Verify by federal government contractors until May 21, 2009 in order to give the new Administration “an opportunity to review the rule” prior to its implementation. An official notice will appear in the January 30 Federal Register.

This extended delay allows time for courts to rule on pending motions challenging the rule’s lawfulness under the Administrative Procedure Act. In addition, given ongoing opposition by organized labor, much of the immigrant community and significant segments of the business community, the withdrawal or substantial revision of the E-Verify federal contractor rule now becomes increasingly likely.

Pending additional notice, federal contractors may suspend all-out efforts to comply with E-Verify until May 21, 2009. We will continue to inform you of developments as political events unfold.

Until then, for further information on E-Verify and/or federal contractor, affirmative action or immigration compliance generally, please contact any member of the McGuireWoods Immigration, Labor & Employment or Employee Benefits teams.