New rules were scheduled to go into effect on January 15, 2009 that would require most federal government contractors to use E-Verify, an electronic employment eligibility verifi cation system operated by the U.S. Department of Homeland Security. E-Verify (formerly known as the Basic Pilot/Employment Eligibility Verifi cation Program) allows employers to electronically confi rm the biographical data of employees pursuant to a Memorandum of Understanding entered into among the employer, the U.S. Department of Homeland Security and the Social Security Administration.

Due to pending litigation involving these regulations, implementation has been delayed until May 21, 2009. We will continue to keep you apprised of developments in this area.