Independent Contractor Compliance Blog - by Collabrus™

Since June of last year, I’ve been reporting to you that the Department of Homeland Security (DHS) and the Social Security Administration (SSA) had joined forces to require private companies doing business with the federal government to ensure their employees are working here legally by requiring they use the U.S. government’s E Verify Program. This requirement is aimed at cracking down on hiring illegal immigrants or anyone who does not have permission to work in this country.

Initially, E Verify was to be required of all businesses, even those without government contracts.

Originally, the federal government had considered making E Verify a requirement for all employers across the nation, but backed off as a result of great opposition to the idea.  Opponents state the system is ineffective and slow. They say the files are too large and inaccurate, offsetting any advantages the system may otherwise provide.

In August of last year the DHS backed down on requiring that all private companies use E Verify and said it was studying other options. It appears the lawmakers found another option.

Using E Verify is required as part of the recovery plan.

If you read Section 1114, of the American Recovery Act titled, REQUIRED PARTICIPATION IN E-VERIFY PROGRAM, you’ll see it’s short and to the point:

None of the funds made available in this Act may be used to enter into a contract with an entity that does not participate in the E-verify program described in section 401(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

Does the government still envision the required use of E Verify for all businesses sometime in the future?

We’ll need to wait and see, but for now if you receive money as part of the stimulus program expect to use E Verify for new hires.