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Do any organizations qualify for an exception to the E-Verify federal contractor rule?

Yes. Most federal contractors are required to use E-Verify for all newly hired employees, regardless of whether the employees are assigned to a federal contract, and all existing employees assigned to the contract. However, certain organizations with applicable federal contracts containing the FAR E-Verify clause qualify for an exception that requires them to use E-Verify, but permits them to choose to use E-Verify only to verify the employment authorization of employees assigned to a covered federal contract (both new hires and existing employees, but only new hires and existing employees assigned to the contract). These organizations include:

  • Institutions of higher education (as defined at 20 U.S.C. 1001(a))
  • State and local governments
  • Governments of federally recognized Native American tribes
  • Sureties performing under a takeover agreement entered into with a federal agency pursuant to a performance bond

For specific instructions on organizations that qualify for exceptions, see the E-Verify Supplemental Guide for Federal Contractors.

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