The House of Representatives passed the Employee Verification Act of 2008 (H.R. 6633) by a vote of 407-2 on July 31. The legislation, introduced by Representative Gabrielle Giffords (D-Ariz.) would extend the federal government’s E-Verify program for five years.

The E-Verify program has been available since 1996 and is currently voluntary for the private sector but mandatory for federal agencies to verify the legal working status of employees. The system is an Internet-based program that compares information on employment authorization forms, or I-9 forms, with the Social Security Administration and the Department of Homeland Security (DHS) databases. In June, the Federal Acquisition Regulation (FAR) Council published a proposed rule to require certain federal contractors and subcontractors to participate in the E-Verify system. Read more about the proposed rule rule here.

The bill also would authorize two studies on E-Verify. The first study would examine erroneous tentative no confirmations under E-Verify, specifically focusing on the causes of erroneous tentative no confirmations, processes to remedy errors, and the impact of such errors on individuals, employers, and federal agencies.

The second study would analyze the effect of E-Verify on small businesses and other small entities using the program. That study would focus on the cost to small entities of complying with E-Verify, an estimate of the number of small businesses participating in E-Verify, an analysis of compliance requirements such as reporting and record keeping, and steps DHS can take to minimize the economic impact of participating in E-Verify.

The Senate now must address the issue in September after they return from the August recess. The program will expire on November 1 if Congress does not take action.

NSBA has had concerns with the E-Verify system because certain lawmakers and administration officials have expressed interest in mandating the use of E-Verify nationwide. Critics of the program point to a 4-6 percent error rate as evidence that the system needs additional refinements. NSBA filed comments on the FAR Council proposed rule which included questions on the efficiency of the system and what the aggregate impact would be on the small-business community if the program is expanded.