The E-Verify federal contractor rule requires federal prime contractors with federal contracts containing the FAR E-Verify clause to require their subcontractors to use E-Verify when:
- The prime contract includes the FAR E-Verify clause.
- The subcontract is for commercial or noncommercial services or construction.
- The subcontract has a value of more than $3,000.
- The subcontract includes work performed in the United States.
Subcontractors who are only suppliers, however, are not subject to the E-Verify federal contractor rule.
The prime contractor should provide general oversight to subcontractors to ensure they meet the E-Verify requirement. A prime contractor may be subject to fines and penalties if it knowingly continues to work with a subcontractor who is in violation of the E-Verify requirement. The prime contractor must ensure that all covered subcontracts at every tier incorporate the FAR E-Verify clause at FAR 52.222-54. For more information on subcontractors, see the E-Verify Supplemental Guide for Federal Contractors.