January 27, 2009

A Possible Reprieve for Federal Contractors?

In light of the Obama administration's directive ordering agencies to freeze all pending federal regulations until the new team has had a chance to vet them, it remains uncertain if there will another delay in the implementation of the Federal Contractor E-Verify rule. The rule was originally slated to be implemented on January 15, 2009 but was recently postponed to February 20, 2009. The  memorandum distributed on January 21st by White House Chief of Staff Rahm Emanuel stated that no proposed or final regulation should be sent to the Office of the Federal Register for publication until it has been reviewed by an Obama-appointed department or agency head. Emanuel also asked that officials reconsider final regulations that have been published, but have yet to take effect.

Further delays of the applicability date will postpone the time when federal agencies will begin inserting clauses into their contracts requiring certain federal contractors to use E-Verify. GT will continue to update you on the status of this rule as we learn more.