The federal government has announced its final rule requiring mandatory e-verification of the immigration status of employees for all federal contractors and their subcontractors. The E-Verify Federal Contractor rule will take effect January 15, 2009. However, commercially-available, off-the-shelf items (COTS) such as produce are exempt.

In June, the federal government issued a proposed rule which would require government contractors and subcontractors to use the E-Verify system to check the legal immigration status of their employees. Currently, enrollment in E-Verify is voluntary. Since then, United Fresh and a number of other agricultural entities immediately began raising questions about the scope of this rule and its impact upon federal commodity procurement for civilian and military use. Additionally, concerns were raised about the uneven application of the rule upon packaged and bulk commodities, the ambiguity surrounding the definition of subcontractors and their relationship to producer-owned marketing associations, and other technical issues in the rule. The centerpiece of those comments is United’s position that the exemption in the interim rule that exists for commercially-available, off-the-shelf items (COTS) should be applied to fresh produce. As a result, the final rule includes the requested COTS exemption for produce. "We are pleased that the federal government ruled in this manner, helping to relieve a significant burden to produce firms who decide to accept or bid on federal government contracts," said Kam Quarles, vice president of legislative and regulatory affairs for United Fresh. "We are continuing to review other aspects of this rule and will provide more details upon completion." For more details, contact Kam at 202-303-3427.