FAR 52.222-54—Employment Eligibility Verification.
Plain-English Summary
FAR 52.222-54, Employment Eligibility Verification, implements the federal E-Verify requirements for covered contractors and subcontractors. This clause defines key terms such as COTS item, employee assigned to the contract, subcontract, subcontractor, and United States, because those definitions determine who is covered and which workers must be verified. It then sets out the enrollment and verification timelines for contractors that are not yet enrolled in E-Verify and for those already enrolled at award, including separate rules for new hires and employees assigned to the contract. The clause also provides special options for institutions of higher education, state and local governments, federally recognized Indian tribes, and sureties performing under takeover agreements, allowing them to verify only employees assigned to the contract. In addition, it allows contractors to choose to verify all existing employees hired after the statutory cutoff date instead of only contract-assigned employees, and it requires compliance with the E-Verify program Memorandum of Understanding for the full period of performance. Practically, this clause is about making sure covered work is performed by workers whose employment eligibility has been verified on time, while giving contractors clear deadlines and limited flexibility depending on their status and organization type.
Key Rules
Definitions control coverage
The clause defines COTS item, employee assigned to the contract, subcontract, subcontractor, and United States. These definitions matter because they determine whether the clause applies, which workers must be checked, and how far down the supply chain the requirement reaches.
Enroll within 30 days
If the contractor is not already enrolled as a Federal Contractor in E-Verify at award, it must enroll within 30 calendar days after contract award. Enrollment is the starting point for all later verification deadlines.
Verify new hires on time
After enrollment, the contractor must begin using E-Verify to verify all new hires working in the United States within 3 business days after the date of hire, subject to the special timing rules in the clause. This applies whether or not the new hire is assigned to the contract, unless a special exception applies.
Verify contract-assigned employees
The contractor must initiate verification for each employee assigned to the contract within the later of 90 calendar days after enrollment or 30 calendar days after the employee is assigned to the contract. If the contractor was already enrolled at award, the timing runs from contract award or assignment, whichever is later.
Special limited-verification option
Institutions of higher education, state or local governments, federally recognized Indian tribes, and sureties performing under takeover agreements may choose to verify only employees assigned to the contract. For these entities, the new-hire verification requirement applies only to new employees assigned to the contract.
Optional verification of all existing employees
A contractor may elect to verify all existing employees hired after November 6, 1986, rather than only those assigned to the contract. If it makes this election, it must initiate verification for each covered existing employee within 180 calendar days after enrollment or after notifying E-Verify Operations of the election.
MOU compliance is mandatory
The contractor must comply with the E-Verify program Memorandum of Understanding for the entire period of performance. This means the contractor must follow the program’s operational rules, not just the clause text.
Responsibilities
Contracting Officer
Include the clause when prescribed by FAR 22.1803 and ensure the contract reflects the applicable E-Verify requirement. The contracting officer should also understand whether the contractor is already enrolled, whether any special category applies, and whether subcontract flowdown or performance monitoring issues may arise.
Contractor
Enroll in E-Verify when required, initiate verification for covered new hires and employees assigned to the contract within the required timeframes, comply with the E-Verify MOU, and maintain accurate tracking of hire dates, assignment dates, and enrollment dates. The contractor must also decide whether to use the optional all-existing-employees verification path and then meet the 180-day deadline.
Covered Subcontractor
If the clause is flowed down or otherwise applicable, follow the same E-Verify enrollment and verification obligations for its own covered employees and any employees assigned to the subcontract, consistent with the prime contract requirements and the subcontract’s terms.
Agency
Apply the clause only when required by the prescription, monitor compliance as part of contract administration, and ensure the agency’s E-Verify-related contracting actions align with the governing statute, FAR, and program MOU requirements.
DHS/SSA E-Verify Program
Operate the E-Verify system, provide the program MOU and contact procedures, and administer program rules, including any termination rights under the MOU and applicable law.
Practical Implications
Contractors need a reliable process to track award dates, enrollment dates, hire dates, and assignment dates, because the deadlines are short and different for each category of worker.
A common mistake is assuming only employees directly working on the contract must be verified; the clause can require verification of all new hires working in the United States, depending on the contractor’s status and enrollment timing.
Special-category contractors often overlook that the limited-verification option applies only to employees assigned to the contract, not to every workforce situation, and only if they fit one of the listed categories.
Subcontract flowdown and workforce management can become compliance risks if subcontractors are not told early enough that E-Verify obligations may apply to them.
The optional decision to verify all existing employees can create a large administrative burden, so contractors should make that election deliberately and only after confirming they can meet the 180-day deadline and MOU requirements.
Official Regulatory Text
As prescribed in 22.1803 , Insert the following clause: Employment Eligibility Verification (Jan 2025) (a) Definitions . As used in this clause- Commercially available off-the-shelf (COTS) item — (1) Means any item of supply that is— (i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” at Federal Acquisition Regulation (FAR) 2.101 ); (ii) Sold in substantial quantities in the commercial marketplace; and (iii) Offered to the Government, without modification, in the same form in which it is sold in the commercial marketplace; and (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4) , such as agricultural products and petroleum products. Per 46 CFR 525.1 (c)(2), "bulk cargo" means cargo that is loaded and carried in bulk onboard ship without mark or count, in a loose unpackaged form, having homogenous characteristics. Bulk cargo loaded into intermodal equipment, except LASH or Seabee barges, is subject to mark and count and, therefore, ceases to be bulk cargo. Employee assigned to the contract means an employee who was hired after November 6, 1986 (after November 27, 2009 in the Commonwealth of the Northern Mariana Islands), who is directly performing work, in the United States, under a contract that is required to include the clause prescribed at 22.1803 . An employee is not considered to be directly performing work under a contract if the employee- (1) Normally performs support work, such as indirect or overhead functions; and (2) Does not perform any substantial duties applicable to the contract. Subcontract means any contract, as defined in 2.101 , entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. It includes but is not limited to purchase orders, and changes and modifications to purchase orders. Subcontractor means any supplier, distributor, vendor, or firm that furnishes supplies or services to or for a prime Contractor or another subcontractor. United States , as defined in 8 U.S.C. 1101(a)(38) , means the 50 States, the District of Columbia, Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands. (b) Enrollment and verification requirements . (1) If the Contractor is not enrolled as a Federal Contractor in E-Verify at time of contract award, the Contractor shall- (i) Enroll . Enroll as a Federal Contractor in the E-Verify program within 30 calendar days of contract award; (ii) Verify all new employees . Within 90 calendar days of enrollment in the E-Verify program, begin to use E-Verify to initiate verification of employment eligibility of all new hires of the Contractor, who are working in the United States, whether or not assigned to the contract, within 3 business days after the date of hire (but see paragraph (b)(3) of this section); and (iii) Verify employees assigned to the contract . For each employee assigned to the contract, initiate verification within 90 calendar days after date of enrollment or within 30 calendar days of the employee’s assignment to the contract, whichever date is later (but see paragraph (b)(4) of this section). (2) If the Contractor is enrolled as a Federal Contractor in E-Verify at time of contract award, the Contractor shall use E-Verify to initiate verification of employment eligibility of- (i) All new employees . (A) Enrolled 90 calendar days or more . The Contractor shall initiate verification of all new hires of the Contractor, who are working in the United States, whether or not assigned to the contract, within 3 business days after the date of hire (but see paragraph (b)(3) of this section); or (B) Enrolled less than 90 calendar days . Within 90 calendar days after enrollment as a Federal Contractor in E-Verify, the Contractor shall initiate verification of all new hires of the Contractor, who are working in the United States, whether or not assigned to the contract, within 3 business days after the date of hire (but see paragraph (b)(3) of this section); or (ii) Employees assigned to the contract . For each employee assigned to the contract, the Contractor shall initiate verification within 90 calendar days after date of contract award or within 30 days after assignment to the contract, whichever date is later (but see paragraph (b)(4) of this section). (3) If the Contractor is an institution of higher education (as defined at 20 U.S.C. 1001(a) ); a State or local government or the government of a Federally recognized Indian tribe; or a surety performing under a takeover agreement entered into with a Federal agency pursuant to a performance bond, the Contractor may choose to verify only employees assigned to the contract, whether existing employees or new hires. The Contractor shall follow the applicable verification requirements at (b)(1) or (b)(2) respectively, except that any requirement for verification of new employees applies only to new employees assigned to the contract. (4) Option to verify employment eligibility of all employees . The Contractor may elect to verify all existing employees hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of the Northern Mariana Islands), rather than just those employees assigned to the contract. The Contractor shall initiate verification for each existing employee working in the United States who was hired after November 6, 1986 (after November 27, 2009, in the Commonwealth of the Northern Mariana Islands), within 180 calendar days of- (i) Enrollment in the E-Verify program; or (ii) Notification to E-Verify Operations of the Contractor’s decision to exercise this option, using the contact information provided in the E-Verify program Memorandum of Understanding (MOU). (5) The Contractor shall comply, for the period of performance of this contract, with the requirements of the E-Verify program MOU. (i) The Department of Homeland Security (DHS) or the Social Security Administration (SSA) may terminate the Contractor’s MOU and deny access to the E-Verify system in accordance with the terms of the MOU. In such case, the Contractor will be referred to a suspending and debarring official. (ii) During the period between termination of the MOU and a decision by the suspending and debarring official whether to suspend or debar, the Contractor is excused from its obligations under paragraph (b) of this clause. If the Contractor is not suspended, debarred, or subject to a voluntary exclusion, then the Contractor must reenroll in E-Verify. (c) Web site . Information on registration for and use of the E-Verify program can be obtained via the Internet at the Department of Homeland Security Web site: https://www.e-Verify.gov . (d) Individuals previously verified . The Contractor is not required by this clause to perform additional employment verification using E-Verify for any employee- (1) Whose employment eligibility was previously verified by the Contractor through the E-Verify program; (2) Who has been granted and holds an active U.S. Government security clearance for access to confidential, secret, or top secret information in accordance with the National Industrial Security Program Operating Manual; or (3) Who has undergone a completed background investigation and been issued credentials pursuant to Homeland Security Presidential Directive (HSPD)-12, Policy for a Common Identification Standard for Federal Employees and Contractors. (e) Subcontracts . The Contractor shall include the requirements of this clause, including this paragraph (e) (appropriately modified for identification of the parties), in each subcontract that- (1) Is for— (i) Services (except for commercial services that are part of the purchase of a COTS item (or an item that would be a COTS item, but for minor modifications), performed by the COTS provider, and are normally provided for that COTS item); or (ii) Construction; (2) Has a value of more than $3,500; and (3) Includes work performed in the United States. (End of clause)