In short, the E-Verify federal contractor rule lives and the no-match rule dies.

The E-Verify contractor rule and the no-match rules were released in the tail end of the Bush Administration. The E-Verify rule would require most major federal contractors to use E-Verify in order to qualify for their contracts. The no-match rule covered situations where employers received letters from the Social Security Administration notifying them that employees social security numbers do not match their names. The rule outlined specific procedures for employers to follow after receiving such letters and the penalty for not following the procedures is a potential finding of knowingly hiring unauthorized workers.

Both rules have been blocked from implementation due to litigation. The Obama Administration needed to determine whether it wished to fight for either or both rules and today's press release from Secretary of Homeland Security Janet Napolitano made clear that the Administration will only fight for the contractor rule. A key sticking point in the litigation has been whether the rule's application of E-Verify to existing employees of a contractor should be permitted or whether only new employees should be put through the system. I have been told by insiders that a compromise on this issue was near, but this press release does not indicate whether a deal has been struck with the plaintiffs in the lawsuit.

The press release says the White House is seeking implementation of the contractor rule beginning on September 8th.