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A federal judge on Wednesday rejected a lawsuit to stop a rule requiring federal contractors to use the E-Verify system, the Society for Human Resource Management announced. The rule is set to take effect Sept. 8.
SHRM, the Chamber of Commerce of the United States of America and others had sued to stop the rule arguing it was neither legally justified nor practical.
The rule will require use of E-Verify for all of a firm's employees hired during the period a firm holds a federal contract and all existing employees assigned to work under a contract, according to SHRM.
E-Verify is a federally operated Web-based service for employers that checks information from I-9 forms against Department of Homeland Security and Social Security Administration databases to verify if a worker is legally eligible to work in the U.S.
Then-President George Bush first issued an executive order in June 2008 requiring federal contractors to use E-Verify. The Obama Administration announced last month that it supported the rule.