Subcontractors, Independent Contractors, and Affiliates

Subcontractors

The E-Verify federal contractor rule requires certain federal prime contractors to require their subcontractors to use E-Verify when:

• The prime contract includes the Federal Acquisition Regulation (FAR) E-Verify clause (PDF)
• The subcontract is for commercial or noncommercial services or construction
• The subcontract has a value of more than $3,500
• The subcontract includes work performed in the United States

Prime Contractor and Subcontractor Obligations

The prime contractor should provide general oversight to their subcontractors to ensure that they meet their contractual requirements, which may include enrolling in and using E-Verify. 

The subcontractor should provide the prime contractor a copy of their Maintain Company page from E-Verify to prove that they are enrolled in E-Verify.

Independent Contractors and Self-Employed Individuals

Form I-9, Employment Eligibility Verification, rules govern whether an individual is considered self-employed with respect to using E-Verify. Generally, self-employed individuals are not required to complete Form I-9 on themselves, and therefore are not required to use E-Verify. However, all employers, including sole proprietorships, must complete a Form I-9 for each employee they hire.

Subsidiaries and Affiliates

Only the legal entity (business) that signs the contract is considered the federal contractor and is bound by the E-Verify obligation.

Whether certain subsidiaries and affiliates are a part of the legal contracting entity depends on the specific factual context. Consult your legal counsel if you have additional questions about this topic.