Does the rule apply to subcontracts?

The E-Verify federal contractor rule requires federal prime contractors with the FAR E-Verify clause to require their subcontractors to use E-Verify when:

• 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. Prime contractors may be subject to fines and penalties if they knowingly continue 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.