In response to a federal lawsuit requesting injunctive relief blocking implementation of the E-Verify federal contractor rule, the Department of Homeland Secretary (DHS) has agreed to suspend the Rule’s effective date until February 20, 2009.  A formal notice will soon appear in the Federal Register confirming this agreement.

As previously reported, the Rule was set to take effect on January 15, 2009, and would require all U.S. employers with federal contracts exceeding $100,000 to implement E-Verify for any new and all existing employees.  The lawsuit, US Chamber of Commerce v. Chertoff, challenges the DHS’ authority to create a regulation making E-Verify registration mandatory, where the authorizing statute explicitly required any electronic verification system to be voluntary.

The Rule’s temporary suspension will allow both parties to file briefs with the court on an expedited schedule.  Depending upon how the court rules on those briefs, the E-Verify federal contractor rule may move forward or it may be enjoined.

J&H will continue to monitor the status of the Rule requiring federal contractors to implement E-Verify and will update clients as news becomes available.

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