Q : Does the rule apply to subcontracts?

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:

1. The prime contract includes the FAR E-Verify clause
2. The subcontract is for commercial or noncommercial services or construction
3. The subcontract has a value of more than $3,000
4. 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.