Exemptions and Exceptions

How to Determine if you are Affected by the E-Verify Federal Contract Rule

The E-Verify federal contractor rule will affect federal contractors who are awarded a new contract or solicitations issued on or after September 8, 2009, that include the Federal Acquisition Regulation (FAR) E-Verify clause (73 FR 67704). 

Qualifying federal contracts must contain the FAR E-Verify clause and may include:

• Contracts that were awarded on or after September 8, 2009
• Contracts that have a performance period of 120 days or more 
• Contracts with values exceeding the simplified acquisition threshold of $150,000
• Contracts in which at least some portion of the work is performed in the United States

If you have further questions about whether your federal contract qualifies under the E-Verify federal contractor rule, check with your government contracting official.

Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts

Existing indefinite-delivery/indefinite-quantity (IDIQ) contracts may be modified by the government contracting official on a bilateral basis in accordance with FAR 1.108(d) (3), to include the FAR E-Verify clause for future orders when:

• The remaining period of performance extends at least six months after the effective date of the rule, and/or 
• The amount of work or number of orders expected under the remaining period of performance is substantial

Contracts Exempt from the Federal Contractor Rule

Companies whose contracts are exempt from the federal contractor rule are not required to enroll in E-Verify. A contract is considered exempt if any of the following criteria are met:

• The contract is for less than 120 days  
• The value is less than $150,000, the simplified acquisition threshold
• The work is performed outside the United States
• The contract includes only commercially available off-the-shelf (COTS) items and/or related services

Organizations that Qualify for Exceptions

The federal contractor rule generally requires the use of E-Verify for all new employees, regardless of whether they are assigned to a federal contract. However, the following organizations awarded a contract with the FAR E-Verify clause are only required to use E-Verify for new hires and existing nonexempt employees who are working directly under a covered contract:

• State and local governments
• Institutions of higher education (as defined at 20. U.S.C. 1001 (a))
• Governments of federally recognized Native American tribes
• Sureties performing under a takeover agreement entered into with a federal agency under a performance bond

For additional information see the E-Verify Supplemental Guide for Federal Contractors.