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Companies that do business with the federal government have a new requirement to meet; ignoring it could cost them thousands of dollars in penalties or even prison time.

Effective Sept. 8, all employers with federal contracts or subcontracts that contain the Federal Acquisition Rule E-Verify clause are required to use E-Verify, an Internet-based system, to determine the eligibility of new employees to legally work in the United States. The system is operated by the U.S. Department of Homeland Security in partnership with the Social Security Administration.

To assist Iowa companies in meeting the new requirement, the Center for Industrial Research and Service (CIRAS) of Iowa State University Extension is offering a series of free workshops throughout the state.

“It’s pretty much (applicable to) any company in Iowa providing any type of materials or services to the federal government, or acting as a subcontractor to a company that’s contracting with the federal government,” said Kristin Bowen, a government contracting specialist with CIRAS. Penalties can range from $100 to $11,000 per employee violation, she said, and up to six months of imprisonment for hiring and employing unauthorized workers.

After registering for E-Verify, businesses will file information contained on the Form I-9 filed by new employees, who will be either identified as eligible to work in the United States or will have to report to one of the two agencies to resolve the discrepancy. The system can also be used voluntarily by companies that aren’t subject to the required registration to verify the legal status of new hires.

In Central Iowa, workshops are scheduled Dec. 9 in Altoona and Feb. 4 in Ankeny. The workshops are free, but registration is required to attend. For more information and to register, visit www.cepd.iastate.edu/CIRAS. Additional resources are available at the U.S. Citizenship and Immigration Services Web site, www.uscis.gov.