U.S. Chamber Critical of Massive Extension of Electronic Verification System to Federal Contractors

Says New Proposed Rule Unlawful and Calls for it to be Withdrawn

WASHINGTON, D.C.—The U.S. Chamber of Commerce today filed comments extremely critical of a Proposed Rule issued jointly by several agencies which would require virtually all federal contractors and sub-contractors to enroll in the Department of Homeland Security's E-Verify system, also known as the basic pilot program, which is intended to check the work authorization of employees.

"While we fully appreciate the purpose of the proposed regulation, it contravenes the intent of Congress to make participation in this program voluntary and is not justified by the general procurement powers of the President," said Randel Johnson, Chamber vice president of Labor, Immigration, and Employee Benefits. "Further, the rule raises many unnecessary practical problems which will make ever more complex an already overly complicated federal procurement system. The Chamber's comments document these issues in detail and we look forward to working with the various agencies involved to achieve a proper resolution of our disagreements over the next several months."

The Proposed Rule seeks to impose the use of E-Verify, a strictly voluntary program statutorily known as the Basic Pilot Program, on virtually all federal contractors and subcontractors. It would also expand its applicability from new hires only, as is the case in the current voluntary system, to many existing employees of the contractors and subcontractors. E-Verify is set to expire in November of this year and the House of Representatives recently voted to renew it on a voluntary basis only for an additional five years with two studies to be completed within the next two years by the Government Accountability Office.

"The Chamber supports a new employment eligibility verification system within the context of comprehensive immigration reform because employers want the tools to ensure that their workforce is in fact authorized to work," added Johnson. "But there are common concerns across the business, labor, and ethnic groups' advocates because of the broad reach of the proposed rule, as it will affect every employer and employee, at the tune of 10 billion dollars per year."

The proposed regulation was issued on June 12, 2008, (73 FR 3374) with the purpose of implementing Executive Order 13465. To read the comments issued by the U.S. Chamber visit: http://www.uschamber.com/assets/labor/080811_fed_Ks.pdf

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.