From VETS to Verify: New Rules for Federal Contractors

VETS-100 and VETS-100A

If you are a government contractor or subcontractor and have contracts entered into or modified after December 1, 2003 of $100,000 or more, you will be required to file the new VETS-100A report form by September 30, 2009. In addition, if you have contracts entered into prior to December 1, 2003 of $25,000 or more, you must continue to file the VETS-100. Both forms must be filed by September 30, 2009.

Prior to 2002, the Vietnam Era Veterans’ Readjustment Act (VEVRAA) required federal contractors and subcontractors with contracts worth $25,000 or more to collect data on certain categories of veterans in their workforce annually and report them on the Federal Contractor Veterans’ Employment Report, or VETS-100.  The Jobs for Veterans Act of 2002 (JVA) amended VEVRAA’s reporting requirements both in the contract dollar amount and veteran categories, and asked the Department of Labor (DOL) to issue regulations implementing these changes.   The DOL issued these regulations on May 19, 2008 creating the new VETS-100A report form to be used starting September 30, 2009.

The covered veteran categories for the VETS-100 form are:

• Special disabled veterans
• Vietnam-era veterans
• Recently separated veterans
• Other protected veterans

The covered veteran categories for the VETS-100A form are:

• Disabled veterans
• Other protected veterans
• Recently separated veterans
• Armed Forces Service Medal veterans

We recommend that federal contractors review their contracts to determine which of these forms (or both) apply.  Additional information and frequently asked questions can be found on the Department of Labor’s website at http://www.dol.gov/vets/contractor/main.htm.

E-Verify

Effective September 8, 2009, federal contractors with a prime federal contract of over $100,000 and a performance period of at least 120 days will be required to use E-Verify to verify the legal work status of newly-hired employees and current employees working directly on the covered federal contract.  This also applies to subcontractors for services or construction over $3000.

E-Verify, which compares information from the Employment Eligibility Verification Form (I-9) against federal government databases to verify workers’ employment eligibility, is a free web-based system operated by DHS in partnership with the Social Security Administration (SSA). The system facilitates compliance with federal immigration laws and helps to deter unauthorized individuals from attempting to work and helps employers avoid employing unauthorized aliens.

This September 8^th deadline means that most federal contracts awarded, as well as solicitations issued after September 8, 2009, must include a clause mandating use of E-Verify for all employees hired during the contract period and all existing employees assigned to perform work under the contract.

We recommend that federal contractors review the terms and scope of current contracts as well as bids or solicitations for future contracts to determine if and when the requirements will need to be implemented.  Additional information can be found at the U.S. Citizenship and Immigration Services (USCIS) website at http://www.uscis.gov/portal/site/uscis/.

Submitted by: Mitzi Root, PHR; Senior Human Resources Consultant, IntegrityHR, Inc.