The E-Verify Federal contractor rule requires that the FAR E-Verify clause be added to applicable federal contracts issued on or after September 8, 2009. The clause is a term in the contract in which federal contractors commit to use E-Verify to verify that all of their new hires and all employees (existing and new) assigned to a federal contract are authorized to work in the United States.
No, E-Verify does not replace the legal requirement to complete and retain Form I-9. E-Verify verifies the employment authorization of new hires based on the information they provide on Form I-9. You still must retain and store Form I-9 in either paper, electronic, or microfilm/microfiche format for as long as the employee works for you, and then for the required retention period.
See The Handbook for Employers: Instructions for Completing Form I-9 (M-274) for more information on retention of Form I-9.