The E-Verify Federal contractor rule requires certain Federal prime contractors with 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 suppliers 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. The 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, by whatever means the contractor considers appropriate, 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 Supplemental Guide for Federal Contractors.