E-Verify

HollyatSouthEastBank

We are a small bank, and we qualify for the AAP and EEO-1 reporting status. Are we considered a federal contractor and do we have to use E-Verify?

cnghr

Here's the information I was given when this question arose last winter:

"Most of the time financial institutions are considered to be federal contractors - not because they have "federal contracts", but because they are depositories of federal funds and issuing/paying agents for US savings bonds and notes - activities that make them subject to Executive Order 11246 governing affirmative action and equal employment opportunity. However, banks that are federal contractors only because they are depositaries of federal funds or handle U.S. savings bonds and have no other federal contracts do NOT have to comply with E-verify."

The notice I was sent goes on to say that, while most financial institutions are not required to use E-Verify, it is open to all employers as a voluntary matter and banks may elect to use it if they wish.

Susan Desmond MS

Federal contractors are subject to the e-verification requirements passed under the Bush Administration -- if they ever go into effect. Enforcement of the regulations has been delayed on multiple occasions -- the latest to June 30.

Susan Fahey Desmond
Watkins Ludlam Winter & Stennis, P.A.
P. O. Box 160
Gulfport, MS 39502
[email]sdesmond@watkinsludlam.com[/email]

cnghr

[QUOTE=Susan Desmond MS;716300]Federal contractors are subject to the e-verification requirements passed under the Bush Administration -- if they ever go into effect. Enforcement of the regulations has been delayed on multiple occasions -- the latest to June 30.[/QUOTE]

But whenever or if the requirements do go into effect, it has been determined that most financial institutions, even though they are considered "federal contractors" for some purposes, are NOT covered by Executive Order 12989. It is an amendment to that Executive Order that is supposed to, eventually, require federal contractors to use E-Verify.

Jessica Ayer

The E-Verify system cleared another hurdle this week when a U.S. District Court ruled in favor of the federal government in a lawsuit challenging E-Verify's legality. E-Verify is set to go into effect for federal contractors and subcontractors on September 8. Read the update HRhero provided yesterday at [URL]http://employmentlawpost.com/hrnews/2009/08/27/us-district-court-upholds-e-verify-system/[/URL].