Though provisions to extend E-Verify were dropped from both the economic stimulus package and President Obama’s budget plan, the electronic employment verification system isn’t going away just yet.

The program was scheduled to expire this month, but the budget authorization signed by Obama last week will keep E-Verify running until at least September 30. The original version of the bill would have extended the program’s funding for five years, but that amendment was dropped.

Early versions of Obama’s stimulus bill also included a five-year extension, as well as a provision requiring any company receiving stimulus funds to use E-Verify for new hires. Both those provisions were removed from the final bill.

No money was added for the six-month extension, but the Department of Homeland Security says E-Verify has enough funding to last through September.

What now?

E-Verify’s supporters have been trying to secure a long-term future for the program since the end of last year, but to no avail. The program was first set to expire in November, before a six-month extension was signed by Congress.

That was after ten- and five-year extensions both failed to pass.

What does the future hold? Experts don’t expect calls for a big extension to go away any time soon — Obama has expressed his support for E-Verify, and many members of Congress will likely follow suit.

However, given the program’s recent setbacks, its future is less clear than ever. We’ll keep you posted on any new developments.

Have you used E-Verify? Should the program be extended or just go away? Let us know your opinion in the comments section below.

The new rule applies to companies with contracts lasting more than 120 days, valued at more than $120,000 and involving work done in the United States.

Those companies not already using E-Verify will have to:

• enroll in the program within 30 days of being awarded the contract
• start verifying all new hires within 90 days of enrollment
• verify existing employees who are assigned to work on the contract, and
• continue using E-Verify for the duration of the contract.

As more employers are being forced to use the federal government’s E-Verify system to check the authorization of new hires, HR pros are asking one serious question: Are there any legal risks involved in participation?

First, the good news: The Department of Homeland Security recently assured employers they wouldn’t be held liable if they use E-Verify correctly, and an undocumented worker gets hired anyway.

For example, the worker may be using someone else’s name and social security number — the system won’t know something’s wrong, since it will just verify that the name and SSN match.

In those cases, says Homeland Security Secretary Micheal Chertoff, the company will not be punished — employers are only liable when they knowingly hire unauthorized workers.

Using E-Verify the right way

So if companies get some protection when they use E-Verify correctly, how can HR pros make sure the tool’s not being used the wrong way?

Here are the big E-Verify rules companies must follow, according to the DHS:

• Notify potential hires — Participating employers must post signs at their hiring sites — in English and Spanish — informing potential employees that they use E-Verify. Notices from the DHS are available in the “Online Resources” section of E-Verify.
• Verify new hires only — The system cannot be used to check the authorization of current employees or to pre-screen potential hires before an offer is made. Verification must take place after an employee fills out an I-9 and no later than three days after his or her start date.
• Use it consistently — E-Verify must be used for all new hires. Checking on specific people because a manager’s suspicious about their immigration status is one easy way to end up with a bias claim.
• Don’t act too quickly — If a name and SSN don’t match, you will get a Tentative Nonconfirmation (TNC) — and the key word is “tentative.” Employees must be notified about the TNC as soon as possible, and they have eight business days to resolve the discrepancy by contacting the Social Security Administration. A TNC is never grounds for termination.

State law

Finally, companies should be familiar with all applicable state and local laws. Several states require companies to use E-Verify.

The laws range from mandates for all companies to rules that only apply to employers with government contracts. It’s important to know the ins and outs of the laws in your state.

One concern with the federal system is the possibility that an undocumented worker may have stolen another person’s name and social security number. In those cases, the system won’t see any problem — it’ll just verify that the name and SSN match.

Will employers be held liable if such an employee is hired?

No, according to the DHS. Companies only get fined when they knowingly violate immigration laws, said Homeland Security Secretary Micheal Chertoff in a recent presentation at the Brookings Institute.

If a company is raided and it turns out E-Verify was properly used, the company won’t be fined.

Said Chertoff: “If you operate in good faith, and you use that system, even if it turns out that someone has managed to gain the system by stealing a real identity, you’re not going to get fined or punished.”

Last week, the U.S. Chamber of Commerce issued a 26-page report in response to an executive order requiring all federal contractors to use E-Verify. The Chamber’s opinion: The rule is “misguided, premature and unwarranted.”

The main beef is that Congress expressly approved E-Verify as a voluntary program to be used on new hires only — but the president’s order requires companies to also verify current employees assigned to federal contracts.

Also, the Chamber says, the program is “rife with errors and inaccuracies.” An estimated 0.1% of native-born citizens and 10% of naturalized citizens have incorrect data stored in the Department of Homeland Security or Social Security Administration’s databases — those citizens would likely not be named eligible to work by E-Verify.

You can read the Chamber’s comments here.