Two Rule Delays Will Help Small Businesses Comply With New Directives

DHS Delays Implementation of E-Verify Employment Eligibility System


            The Department of Homeland Security (DHS) agreed to delay until September 8, 2009 implementation of a new rule that would require federal contractors to use the federal government’s E-Verify employment eligibility system.  This rule applies to employers with federal contracts worth more than $100,000 and a performance period of 120 days or more.  The extension was granted after several business groups, including the U.S. Chamber of Commerce, Associated Builders and Contractors, and the Society for Human Resource Management filed a lawsuit challenging the legality of the federal contractor rule. 


FTC Grants Three-Month Delay for “Red Flags” Rule


            The Federal Trade Commission (FTC) will delay enforcement of the new “Red Flags Rule” until August 1, 2009.  This rule will require creditors, financial institutions and businesses that extend credit to customers to develop and implement identity theft prevention programs to detect “red flags.”  The rule was set to take effect on May 1, 2009. 




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