Only the legal entity (business) that signs the contract is considered the contractor, and is bound by the E-Verify obligation. Whether certain subsidiaries and affiliates are a part of a legal contracting entity depends on the specific factual context. Consult your legal representative and government contracting official if you have additional questions about these topics. For information about verifying your existing workforce if you are a Federal contractor with a contract that contains the FAR E-Verify clause, see the Supplemental Guide for Federal Contractors.
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.
Yes. During the E-Verify enrollment process, the subcontractor has the same verification options as the prime contractor with a contract that contains the FAR E-Verify clause. Prime and subcontractors can choose to verify:
- All new hires and all existing non-exempt employees assigned to a Federal contract, or
- Their entire non-exempt workforce (all new hires and all existing employees throughout the entire company).
If a prime contractor’s Federal contract contains the FAR E-Verify clause, the provisions of that clause flow down to all tiers of subcontracts. Consult your prime contractor, who should provide you with general oversight to ensure that you meet the E-Verify requirement. For more information, consult your legal representative. For information on subcontractors, see the Supplemental Guide for Federal Contractors.
No. The E-Verify system does not distinguish between a prime contractor and a subcontractor. It only differentiates between Federal contractors with contracts that do or do not contain the FAR E-Verify clause. For more information on subcontractors, see the Supplemental Guide for Federal Contractors.