NEWSROOM

ABC Aug. 26 received news that a federal court rejected a challenge by ABC to the legality of Executive Order 13465 and a corresponding final rule, which amends the Federal Acquisition Regulation (FAR), by requiring certain federal contractors and subcontractors use the Department of Homeland Security’s (DHS) E-Verify system to verify that their employees are legally authorized to work in the United States.  

In December, ABC and its coalition partners challenged the authority of the government to promulgate this regulation and sought an injunction from the United State District Court for the District of Maryland, Southern Division. The legal challenge echoed ABC's position in previous comments on the rule, arguing that to require broader use of E-Verify would be illegal and expose contractors to needless liabilities.  

“Obviously, we are disappointed with the decision, and we disagree with it,” said Bob Hirsch, ABC’s director of legal and regulatory affairs. “The coalition partners are evaluating the ruling with our attorneys to determine what our  next steps should be.”  

In addition to ABC, the other members of the coalition that challenged the rule were  the U.S. Chamber of Commerce, the Society for Human Resource Management, the American Council on International Personnel and the HR Policy Association.  

Although the rule is slated to take effect Sept. 8, it is unlikely that federal contractors will be expected to comply before October. ABC is still reviewing the case and will continue to keep members updated as this matter develops.