On January 7, 2008, Governor Tim Pawlenty signed an executive order requiring, among other things, all vendors with state contracts of over $50,000 and their subcontractors to:

a. certify that they are in compliance with the Immigration Reform and Control Act of 1986 (“IRCA”); and

b. certify that they have or are in the process of implementing the E-Verify program for all newly hired employees in the United States who will perform work on behalf of the State of Minnesota.

The State now has the ability to terminate the vendor’s contract if the vendor or subcontractor(s) knowingly employ workers in violation of federal immigration laws. The State will institute procedures to ensure vendors and their subcontractors are in full compliance with IRCA as well as a scoring incentive program for businesses which implement E-Verify for new hires. The Order will be effective on January 29, 2008.

What is E-Verify?

E-Verify is an Internet based system operated by the Department of Homeland Security in partnership with the Social Security Administration that allows participating employers to electronically verify the employment eligibility of their newly hired employees. Participating employers can sign up for E-Verify at the following website: https://www.vis-dhs.com/EmployerRegistration/.

Who Is A “Vendor” Under The Executive Order?

A representative of Governor Pawlenty’s office has indicated that the term “vendor” is accorded the broadest meaning possible under Minn. R. 1230.0150, subpart 27 and includes natural persons or business entities that provide any technical, administrative and/or physical services to the State of Minnesota.

If you have any questions regarding Governor Pawlenty’s Executive Order No. 08-01, signing up for E-Verify, for tips on how to properly handle I-9 forms, or for advice on how to audit subcontractors’ hiring procedures, please contact Le Phan at (612) 373-8407 or hphan@felhaber.com.