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Effective January 15, 2009, federal contractors with prime contracts that are valued at $100,000 or more, performed for more than 120 days, and awarded after Jan. 15, 2009, must verify the employment eligibility of new and existing employees by using the federal Department of Homeland Security's E-Verify system.

New Federal Acquisition Regulations implement Executive Order 12,989, which requires federal contractors to use E-Verify for verifying the employment eligibility of new employees who are hired during contract terms to work within the United States and all employees who are assigned to work on government projects within the United States. The FAR E-Verify requirement also applies to federal subcontractors that have contracts for $3,000 or more for services or construction under such prime contracts and for certain federal contractors that are issued solicitations after Jan. 15, 2009.