A federal district court denies the motion by the U.S. Chamber of Commerce and other employer-affiliated groups to halt the implementation of the E-Verify requirement for federal contractors.

At issue is a rule which requires federal contractors to participate in E-Verify, an internet-based system which enables employers to electronically verify that employees are authorized to work in the U.S. The implementation of the rule had been delayed several times first by agreement, then to allow the new Obama Administration to review it. The Administration subsequently decided to implement the rule, making it applicable on September 8, 2009. The plaintiffs challenged the rule’s implementation, arguing that it forces employers to use E-Verify or go out of business. The court agrees with the government’s argument that “contractors are not required to use E-Verify because entities can simply choose not to be a government contractor and thus will not be forced to use E-Verify.”

The employer groups also challenged the rule on the basis that it would force employers to terminate unauthorized workers identified through E-Verify. The government asserted that the rule did not directly cause employers to terminate unauthorized workers identified through the use of E-Verify; any such terminations would be the direct impact of the Immigration and Nationality law which makes it illegal to knowingly employ unauthorized workers. The government also contended that it is “morally dubious” to argue that “the cost of replacing illegal workers who should not have been hired in the first place is something the government must consider in passing a regulation.”

(The E-Verify website has more information on the program and how to enroll.) Chamber of Commerce v. Napolitano