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Business and Policy Areas
Business and Policy Areas

Executive Order Issued Requiring Use of E-Verify

July 7, 2008

On June 6, 2008, President Bush issued an Executive Order requiring all federal contractors to use the Department of Homeland Security's E-Verify employment verification system once they enter into a contract with an Executive Department or Agency. On June 12, a rule was proposed by the agencies responsible for federal acquisition regulations (FAR) that implemented the Executive Order. E-Verify is the federal government's automated system that allows employers to verify job applicants' eligibility to work in the United States. The E-Verify system has been problematic since its inception in 1996 and many in the business community have expressed concern about E-Verify's error rate. The notice of proposed rulemaking (NPRM) contained a 60-day comment period, and final rules are expected after August 11, 2008.

It is unclear how many colleges and universities will be affected by the new rule, or what the implications will be for institutions participating in Title IV programs.

Key elements of the rule are:

1. The contractor will enroll in the E-Verify program within 30 days of the date a contract is awarded, and within 30 days, use E-Verify to confirm employment authorization.
2. The contractor will used E-Verify for all new hires within 3 days of the date of hire for all employees hired after the contract is awarded.
3. Use of E-Verify is required for all contracts in excess of $3,000.

Additional information is available through  CUPA-HR.

More recently (June 24) the House Appropriations Committee rejected an extension of the E-Verify program, thereby allowing the program to expire on November 30, 2008. However, NACUBO and our partner associations will continue to monitor the issue. Concerned institutions may want to explore enrolling in E-Verify as a precautionary measure.