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In January 2009, we reported on the postponement of a controversial federal regulation resulting from a legal challenge filed by Proskauer Rose on behalf of several trade organizations, including the U.S. Chamber of Commerce. The rule, the result of an executive order signed by then-President George W. Bush, requires most federal contractors and subcontractors to verify their employees’ work eligibility using the Department of Homeland Security’s E-Verify system. On July 8, 2009, President Barack Obama’s Administration announced its plan to go forward with the rule. Immediately after this announcement, the U.S. Senate approved legislation that would codify the rule into law.

Today is Data Privacy Day and we bring you a special post regarding E-Verify from guest contributors Lawrence Lorber, Malcolm Harkins, and James Segroves, of Proskauer’s DC office, and David Grunblatt of Proskauer’s Newark office. Enforcement of a controversial federal regulation that raised significant privacy concerns has been postponed once again as the result of a legal challenge filed by Proskauer on behalf of the Chamber of Commerce of the United States of America and four other trade associations. See Chamber of Commerce of the U.S. v. Napolitano, Civil Action No. AW-08-3444 (D. Md.). The regulation in question would have required most government contractors and subcontractors to participate in E-Verify, an Internet-based system that allows employers to verify that individuals are eligible to work in the United States using an employee’s Social Security Number and other personal information. Pursuant to a January 27, 2009 agreement between the parties, enforcement of the regulation has been postponed until May 21, 2009, in order to give the recently inaugurated Administration of President Barack Obama an opportunity to review the regulation. A notice to this effect is scheduled to be published in the Federal Register on January 30, 2009.
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