After a request by the U.S. Chamber of Commerce, the federal government has agreed to delay the implementation of a requirement for federal contractors and subcontractors to use the E-Verify program until February 20, 2009. The rule was scheduled to take effect on January 15.

E-Verify enables participating employers to verify the employment eligibility of newly-hired employees online, but has run into controversy because it occasionally produces mismatches between social security numbers and names, leading to potential termination of legally authorized workers.

"Postponing mandatory E-Verify use by federal contractors until February will give the new administration an opportunity to re-evaluate the efficacy of the policy," says U.S. Chamber of Commerce spokesperson Robin Conrad. "We hope the incoming administration recognizes that the last thing American businesses need during these difficult economic times is more bureaucracy and higher compliance costs."

Under current federal law, E-Verify use is strictly voluntary and the program may not be used to re-authorize existing employees. On December 23, 2008, the Chamber filed a lawsuit challenging the use of an Executive Order to create a federal procurement rule requiring federal contractors with projects exceeding $100,000 and for sub-contractors with projects exceeding $3,000 to use E-Verify to authorize new employees and to re-authorize all of their existing employees.