December 24, 2008

US Chamber Lawsuit Update

As further pushback to the increasing number of potentially cumbersome immigration related compliance requirements for U.S. companies, the U.S. Chamber filed a lawsuit challenging the legality of the new rules issued through executive order requiring federal contractors and their sub-contractors to use the Department of Homeland Security’s (DHS) E-Verify system (hotlink to http://www2.gtlaw.com/practices/immigration/news/2008/06/06.htm). E-Verify, the successor program to the Basic Pilot, was originally created by Congress as a strictly voluntary system allowing businesses to electronically verify the employment eligibility of their workers. On Tuesday the U.S. Chamber was joined by the Associated Builders and Contractors, the Society of Human Resources Management and the American Council on International Personnel and the HR Policy Association, in filing a lawsuit stating that "the Administration can’t use an Executive Order to circumvent federal immigration and procurement laws."

GT is watching this case, Chamber of Commerce of the United States of America, et al. v. Chertoff, et al., carefully as it may result in an injunction preventing the enforcement of the Federal Contractor E-verify mandate the provisions of which take effect on January 15th. More details may be found in the Chamber’s comment (http://www.uschamber.com/assets/labor/080811_fed_Ks.pdf ) submitted in August discussing presidential authority to regulate immigration law and flaws with the E-Verify system.

For more information on the required use of E-Verify, please refer to our GT Alert: http://www2.gtlaw.com/pub/alerts/2008/0600c.pdf, and our GT Newsflash: http://www2.gtlaw.com/practices/immigration/news/2008/06/24.htm.