Federal Government Again Delays Mandatory E-Verify Use for Government Contractors

Chamber Deal Postpones Rule for a Second Time

WASHINGTON, D.C.— The federal government agreed to a request by the U.S. Chamber of Commerce to postpone the implementation of E-Verify until May 21, 2009 at the earliest. This is the second time the federal government has agreed to delay implementation of the rule.

"The federal government agreed that the new administration needs time to re-think mandatory E-Verify use, particularly in light of the stressed economy," said Robin Conrad, executive vice president of the National Chamber Litigation Center, the Chamber's public policy law firm. "We are hopeful that the incoming administration will agree that E-Verify is the wrong solution at the wrong time."

On January 20, 2009, the incoming administration urged all executive departments and agencies to consider extending the effective date of published regulations that have not yet taken effect. In light of that request, the U.S. Chamber requested that the federal government postpone the new rule requiring federal contractors to use E-Verify. Earlier this month the federal government agreed to the Chamber's request to delay the January 15, 2009 implementation date of the rule until February 20, 2009 in order to accommodate the Chamber's lawsuit challenging the rule.

The lawsuit, Chamber of Commerce, et al v. Chertoff, et al., challenges the use of an Executive Order to circumvent Congress to make E-Verify use mandatory for qualified federal contractors and subcontractors. The Chamber's co-plaintiffs in the lawsuit are the Society for Human Resource Management, the Associated Builders and Contractors, the HR Policy Association, and the American Council on International Personnel.

"The new administration's interest in reviewing the rule is a promising development, but it doesn't change the fact that the executive branch may not make E-Verify use mandatory when Congress clearly said that it must be voluntary," said Randy Johnson, vice president of Labor, Immigration and Employee Benefits at the U.S. Chamber. "We're cautiously optimistic that the incoming administration will make the right choice, but if not it will be up to the court to settle the issue."

NCLC is the public policy law firm of the U.S. Chamber of Commerce that advocates fair treatment of business in the courts and before regulatory agencies.

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.

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