E-Verify is an Internet-based system that compares information from an employee’s Form I-9, Employment Eligibility Verification, to data from U.S. Department of Homeland Security and Social Security Administration records to confirm employment eligibility.

A presidential Executive order and subsequent Federal Acquisition Regulation (FAR) rule required federal contractors to use E-Verify to electronically verify the employment eligibility of employees working under covered federal contracts. The order and the rule reinforce Federal government policy that the Federal government does business only with organizations that have a legal workforce.

Executive Order 12989, as amended by Executive Orders 13286 and 13465, directs all executive departments and agencies to require contractors with qualifying federal contracts to electronically verify employment authorization of: (1) all employees hired during the contract term; and (2) all employees performing work in the United States on the contract. The U.S. Department of Homeland Security (DHS) designated E-Verify as the electronic employment eligibility verification system that all federal contractors must use to comply with these Executive orders. On November 14, 2008, the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council published a final rule in the Federal Acquisition Regulation (referred to as the “Federal Contractor Rule”) to reflect these requirements.