E-Verify is now used by more than 69,000 companies, with about 1,000 firms signing up weekly for the free Internet-based system.
Many companies have enrolled because of stepped-up federal immigration raids. In industries that traditionally rely on immigrant labor, such as meatpacking, companies understand that not using E-Verify can prompt immigration officials to take a closer look.
Chertoff said E-Verify cleared 99.5% of qualified employees automatically. But in 2006 the Social Security inspector general found discrepancies in 17.8 million records for citizens and legal immigrants that would create a "significant workload" to correct.
Lawmakers and other critics warned that forcing the more than 200,000 federal contractors to join E-Verify could overwhelm the Social Security Administration and create havoc for legal workers.
"As the administration requires more employers and workers to move into E-Verify, it should at the same time ensure that the system does not impinge upon U.S. citizens' fundamental right to earn a living," said Rep. Zoe Lofgren (D-San Jose), head of the House subcommittee on immigration.
Firms doing business with the government risk losing their contracts if they break federal rules. Some business executives worry the new requirement could add expenses.
"There's concern about increased costs and delays in hiring brought about by inaccuracies in the database," said Neal J. Couture, executive director of the National Contract Managers Assn.
Timothy D. Sparapani of the American Civil Liberties Union argued that E-Verify was "not real immigration enforcement" because the system could not detect applicants who used documents stolen from legal workers. He predicted the system would prompt more identity theft by illegal immigrants.
"American workers' identities are essentially going to become a black market commodity," Sparapani said.
Still, many were pleased by Monday's action. "With today's announcement by Secretary Chertoff, we are diminishing the ability of illegal immigrants to find employment in the United States," said Rep. Brian P. Bilbray (R-Carlsbad).
Added Dan Stein of the Federation for American Immigration Reform, which advocates restricting all immigration: "It's an excellent idea, long overdue."
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nicole.gaouette@latimes.com
