Big Brother Increasing Immigration Pressure on Contractors

On January 8, 2009

By Scott Wolfe Jr

At the end of 2007, the regulatory buzz around the construction industry regarded the controversial "No-Match" letters imposing steep fiscal penalties for employers who knowingly employed illegal workers. As reported on our blog back then, the controversy led to litigation, which led to delay, which eventually led to the entire controversy pretty much blowing over.

Except that it’s back.

As per an executive order by President Bush, starting January 14, 2009, most federal contractors and subcontractors will be required to use an E-Verify system to confirm the resident status of its employees.

The Midwest Construction Law Blog has posted a blog post with a great summary on the E-Verify history, controversy and requirements. Read it here. That post also discusses a recent lawsuit filed by the Society for Human Resource Management to prevent its enforcement.

And so here we are again – more controversial regulations aimed at construction businesses, and more uncertainty for contractors as to whether the requirements are indeed required.

On what basis is the executive order being challenged? Here is a quote from the Midwest Construction Law Blog post:

E-Verify was designed to allow U.S. employers to use a federal government database to confirm the work eligibility of applicants for jobs. Critics point out that the system has a high error rate. And some have challenged the Bush administration’s authority to mandate E-Verify for contractors.

"The E-Verify system is far from ready to be mandated on employers. Plus, the authority to mandate it lies with Congress, not a federal agency," commented Michael Aitken, SHRM’s director of government affairs, after the suit was filed on Dec. 23, 2008. "SHRM believes the administration is overreaching its authority by mandating an employment verification program designed by statute to be voluntary."

If you are a contractor that does federal work, stay tuned to the Construction Law Monitor for more information about the status of this suit, and the status of the E-Verify requirements.

Posted in: Federal, Labor Law / Tags: E-Verify, Immigration / Leave a comment

About the Author: Scott Wolfe Jr

Scott Wolfe, Jr. obtained his J.D. degree from Loyola University of New Orleans, and his B.A. from Southern Methodist University in Dallas, TX. In 2006, 2007, 2008 and 2009, Scott was recognized as a Leader in Law by CityBusiness Magazine. The son and grandson of general contractors, Scott is a construction litigator in the Pacific Northwest, and the founding member of the bi-coastal law firm, Wolfe Law Group. Scott is also the founder and CEO of Express Lien, Inc., a legal document preparation service for contractors. In 2008, City Business Magazine recognized Scott as one of its Innovators of the Year for the Express Lien concept. As an entrepreneur himself, Scott has a strong background in business and commercial transactions and laws. He focuses his practice on the legal issues facing the construction industry, and has represented clients in multi-million dollar construction disputes in litigation and alternative dispute resolution proceedings. Scott is a LEED AP.