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New Immigration Regulation Eased After Firms Complain
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With E-Verify, human resources officials can use an Internet-based system to check federal Social Security and immigration databases and determine whether an employee is authorized to work.
The federal program was expanded nationwide in 2003, with enrollment growing from 3,000 to 92,000 companies. However, it still covers less than 2 percent of an estimated 6 million U.S. employers and about 11 percent of annual hiring.
In early June, President Bush proposed doubling the number of companies, mandating participation by 169,000 federal contractors and requiring them for the first time to verify the eligibility of existing employees, not just new hires.
Business groups mobilized in protest. The U.S. chamber said the rule would cost $10 billion to implement, 100 times the government's estimate.
The Professional Services Council, an Arlington-based trade group for 330 government services contractors, complained that the proposal singles out federal contractors for greater administrative headaches and potential liability for discrimination and other lawsuits by workers.
"It was the uncertain process, it was the uncertain liability, it was the uncertain scalability of the E-Verify system to handle the size and scope of what the president's executive order was demanding," said Alan Chvotkin, top lobbyist and counsel for the council. With the changes, "I think we're getting closer to a system that is executable in practice, rather than just in theory, but it will remain to be seen whether we will be able to implement this rule."
One concern is database errors. The government acknowledged that the system initially rejects about 5 percent of workers, which could threaten the jobs of 220,000 contractor employees in coming years. U.S. officials estimate that only 2 percent of legal workers, or about 4,000, who were erroneously rejected will choose to quit or give up their jobs, rather that correct mistakes.
Though the announced changes will slow E-Verify's expansion, federal officials stood by their prediction that the initiative will eventually cover more than 20 percent of U.S. hiring, DHS spokeswoman Laura Keehner said.
Grandfathered contracts will eventually expire, Keehner said, and big employers also may choose under the rule to verify the immigration status of all employees, not just those working on federal business.
