On June 10, 2008 President Bush signed an Executive Order requiring federal contractors to register and use the Department of Homeland Security's online employment verification system, E-Verify. This applies to GPO contractors as well. However, in late January 2009, the Obama administration announced that it was delaying implementation until May 21, upon further review. The Obama administration eventualy approved the Executive Order. After a failed court challenge by a coalition of business in Maryland, the Executive Order went into effect in September 9, 2009. A federal contractor will not be required to begin using E-Verify on September 8, 2009, unless it wins a new contract(s) on or after the effective date which contains the E-Verify provision or unless any of its current federal contracts are modified/amended on or after September 8 to include such a provision. The order pertains to federal contracts valued at more than $100,000 and subcontracts worth more than $3,000. Over 168,000 federal contractors would be covered.
E-Verify is an web-based system that checks new hires Social Security numbers and tries to verify employment eligibility in the U.S. Despite over 300,000 firms already using E-Verify, the program has its critics. Namely, the system currently does not catch identity theft.
Supporters of E-Verify say the system is improving and eventually all employers will eventually be using the system. At least a dozen states also require their contractors (and agencies) to use the federal E-Verify system. Other states have addressed immigration compliance, but not to the level of requiring use of the E-Verify system. See here for a state immigration law summary.