The Department of Homeland Security announced that companies awarded federal government contracts will be required to use the E-Verify system to confirm their workers have legal immigration status. E-Verify is an electronic database system that compares I-9 form (Employment Eligibility Verification Form) information against federal government databases to verify workers’ employment eligibility.

The federal contractor rule extends use of the E-Verify system to covered federal contractors and subcontractors, including those who receive American Recovery and Reinvestment Act funds. After a careful review, the administration has supported the full implementation of the rule, which will apply to federal solicitations and contract awards government-wide starting Sept. 8, 2009.

DHS intends to rescind the Social Security No-Match Rule, which has never been implemented and has been blocked by court order, in favor of the more modern and effective E-Verify system.

The No-Match rule established procedures that employers could follow if they receive Social Security Administration No-Match letters or notices from DHS that call into question work eligibility information provided by employees. These notices most often inform an employer many months or even a year later that an employee’s name and Social Security Number provided for a W-2 earnings report do not match SSA records - often due to typographical errors or unreported name changes.