In addition to extending the controversial program for three years, Congress reaffirmed its support by approving $137 million for the system — which allows employers to check on the citizenship status and work eligibility of applicants. Congress retained the stipulation that the program be voluntary for private employers who don’t have federal contracts.

The bill now heads to President Obama, who’s expected to sign it into law.

The U.S. Chamber of Commerce joined forces with the National Association of Manufacturers, among others, to lobby Congress to vote the program out of existence. The C of C and NAM contend the system is rife with errors that result in denials of eligibility for workers who here legally.

The U.S. Department of Homeland Security presented figures on Capitol Hill indicating the system has a 94% accuracy rate, and that was good enough to override C of C and NAM concerns. Further, some state Chamber of Commerce offices, such as in South Carolina,  have endorsed the system and led the way for passage of state laws that make the system mandatory.

The Department of Homeland Security (DHS) announced the so-called ‘no-match’ rules (which told employers what to do if the Social Security number provided by a new hire didn’t match the number in the feds’ database) in 2007. Controversy and legal battles have prevented the rule from ever going into effect.

Now, it’s officially off the books. A regulation was published in the Federal Register on October 7 rescinding the rule.

The DHS announced it will focus on promoting the use of E-Verify as the mechanism for preventing the employment of illegal immigrants.

1. National – Federal contractors doing work for more than 120 days with a value of over $100,000, and subcontractors providing goods and services worth more than $3,000 (read more on these requirements here).
2. Arizona – All employers.
3. Arkansas – State contractors.
4. Colorado – State contractors.
5. Florida – State contractors.
6. Georgia –All public employers, contractors and subcontractors.
7. Idaho – State agencies.
8. Minnesota — All hiring authorities within the executive branch of state government, and employers seeking to enter into a state contract worth more than $50,000.
9. Mississippi — All companies with at least 100 employees. By July 1, 2010, companies with 30-99 employees must comply, and the rest by July 1, 2011.
10. Missouri — All public employers.
11. Nebraska — All state employers and contractors. Also, use of E-Verify is required for private employers who request state tax incentives.
12. North Carolina — All state agencies, offices and universities.
13. Oklahoma — Public employers, contractors and subcontractors.
14. Rhode Island — Executive agencies, and companies doing business with the state, including grantees, contractors, subcontractors and vendors.
15. South Carolina — Employers must use E-Verify, or verify that an employee has a valid S.C. driver’s license or I.D. (or one from a state with similar standards). All companies must comply by January 1, 2010.
16. Utah — Public employers, contractors and subcontractors.

The new E-Verify rule for federal contractors has a lot of employers wondering exactly who’s covered by the requirement — and what they have to do now.

To clear up some of the confusion, U.S. Citizenship and Immigration Services (USCIS) has published answers to a few of HR’s most common questions about federal contractors and E-Verify:

1. Who’s affected by the rule?

Companies will be required to use E-Verify when they enter into federal contracts with a work period of longer than 120 days and a value of more than $100,000. Also, subcontractors are covered by the rule when the prime contract meets those requirements and the subcontract is for services or construction with a value over $3,000.

2. Which employees must be verified?

Covered contractors are required to verify all new hires, as well as any existing employees assigned to the government contract. That includes employees who perform “substantial duties” under the contract, as opposed to those performing overhead or support work.

3. When do we have to enroll?

The rule went into effect on September 8. Any applicable federal contract signed after that date must include an “E-Verify clause” that requires contractors to use the system.

Companies not already signed up for E-Verify have to enroll within 30 days of being awarded the contract and must begin verifying new hires and current employees working on the contract within 90 days.

Of course, companies can sign up whenever they want, so current or prospective federal contractors might as well enroll before they’re required to.

When you enroll, choose “federal contractor” when asked, “Which category best describes your organization?”

4. What if we already have a government contract?

You won’t be required to sign up for E-Verify until you sign a new contract that contains the E-Verify clause.

5. We already enrolled in E-Verify, but not as a contractor? Do we have to re-enroll?

No, but if you aren’t enrolled as a federal contractor, you will need to update your company profile to categorize your company as a contractor.

For more information from USCIS, click here.

As is always the case when a new form is issued, there’s some confusion over what’s being asked of employers. This time, though, things are relatively simple.

U.S. Citizenship and Immigration Services (USCIS) recently posted the new version on its Web site. The previous form was scheduled to expire in June, before USCIS extended the date to August 31. The new I-9 is good until August 31, 2012.

What’s new? Nothing at all, in fact.

The form is the same as the old one, with the exception of the expiration and revision dates (The new version is dated 08/07/09 at the bottom right corner, compared to 02/02/09 for the old form.)

Better yet: HR is allowed to use either version of the form. However, some experts recommend always using the newest revision — whether it’s required or not — to avoid confusion.

You can the latest Form I-9 from USCIS’s Web site here.

For more than a year, some members of the government have been trying to make E-Verify mandatory for federal contractors (President Bush signed the first order in June 2008). But the effective date of the rule has been consistently pushed back, as business groups challenged the requirement.

For now, it looks like the most recently announced effective date of September 8 will stand.

A coalition led by the Chamber of Commerce sued to have the rule stopped permanently, but a federal court recently threw out the case.

The suit argued that Congresses authorized E-Verify as a voluntary program. But the court ruled that the requirement only affects businesses that enter into contracts with the government, which is a “voluntary choice.”

A third of companies are currently using E-Verify, according to a recent Manpower survey of 1,800 HR pros and business owners.

The program’s approval rating is pretty high, according to the survey. Of the respondents who use E-Verify, half rated the system as “very good” in terms of “quality, consistency and speed.” Ratings of “excellent” and “good” were given by 10% and 32%, respectively.

Just 1% said E-Verify was “poor,” and the rest said it was “fair.”

Even without a federal mandate requiring employers to sign up, E-Verify use is on the rise. As of June, 5.5 million employment checks had been completed this year, USA Today reports. That’s compared to 6.6 million in all of 2008, which was twice the number reported for 2007.

What do you think? Do you use E-Verify? If so, how’s it been working? Let us know in the comments section below.

At the end of July, a bipartisan group in the House and Senate reintroduced the Secure America through Verification and Enforcement (SAVE) Act, a bill that would ramp up efforts to fight illegal immigration.

Most notably, it would make E-Verify mandatory for all employers. The requirement would be phased in over a four-year period, starting with federal agencies, then federal contractors. Businesses with more than 250 employees would be next, followed by everyone else.

Also, the bill would increase border security and funnel more resources into prosecuting employers that hire illegals.

Does the SAVE Act have a chance to pass? A nearly identical bill was introduced two years ago but voted down. And given that the E-Verify requirement for federal contractors alone has been pushed back several times, an across-the-board mandate seems like it would be a long shot at this point.

But we’ll keep you posted as the story develops.

The problem: E-Verify doesn’t guard against identity theft, Sen. Charles Schumer (D-NY) said at a recent Senate subcommittee hearing. All the system does is make sure a name matched the social security number assigned to it.

Nothing stops an unauthorized worker from obtaining a SSN and its matching name.

Schumer’s proposed solution: require that the system verifies someone’s identity by using a “specific biometric identifier,” such as a fingerprint. He plans to introduce relevant legislation in the fall.

The debate is just the latest in the fight over E-Verify. In the meantime, federal contractors are preparing for a requirement to start using the system on Sept. 8 — though that same rule has already been delayed several times.

The federal government’s cracking down on I-9 recordkeeping, with a big nationwide audit underway and more investigations likely to come soon.

Earlier this month, U.S. Immigration and Customs Enforcement (ICE) announced it was checking the I-9 records of more than 650 employers. The effort is part of the agency’s new plan to give employers greater responsibility in the fight against illegal immigration.

ICE described the audits as a “first step,” meaning more rounds of inspections are probably coming. Here’s what HR needs to know:

1. Who’s affected?

First off, who can be audited? The answer: anyone. ICE said the companies in the current investigation were chosen based on leads and other information obtained through investigations. Experts say certain industries, such as construction, manufacturing, hotels and restaurants, are being watched more closely than others.

2. What happens?

ICE starts the process by sending the employer a notice of inspection (NOI) requesting certain documents. In addition to I-9 forms, ICE could request EINs, payroll records and correspondences with the Social Security Administration regarding no-match letters.

Companies have three days to send the documents. They can ask for a time extension in some cases, but response to the NOI still must be quick.

Once a notice arrives, attorneys recommend gathering the documents and conducting a self-audit before submission to correct simple mistakes.

If ICE isn’t satisfied, it may conduct an interview with the employer — though the company has the right to refer the agency to an attorney. Once everything’s reviewed, the company could receive a “Notice of Intent to Fine,” as well as a list of undocumented workers that must be terminated and a list of “suspect documents,” requiring the employer to complete new I-9s.

3. How much can it cost?

In most cases, fines for bad documentation range from $110 to $1,100 per form. ICE can also pursue criminal charges if it thinks the company willfully hired illegal workers.

4. What can HR do now?

The best option for employers, of course, is ensure the documentation is spotless before an audit occurs. Experts recommend conducting an internal audit annually.

Both internal and ICE audits will go more smoothly if unneeded forms are discarded. (The law requires companies to keep I-9s for three years after the employee is hired or one year after termination, whichever is later.) The first step of an audit should to compile a complete list of which forms should still be on file.