On June 6, 2008, President Bush issued an executive order directing federal agencies to require federal contractors to agree to electronically verify their employees' eligibility to work legally in the United States, and a final rule implementing the order was issued on November 14, 2008, with an effective date of January 15, 2009. The U.S. Chamber of Commerce and other business groups sued to block the rule, and on January 9, 2009, the government announced that it would postpone implementation.  The Obama Administration postponed the rule again until May 21, 2009, and now it has announced that it is extending the postponement yet again until June 30, 2009. 
 
The final rule clarified Bush's executive order and set forth guidelines regarding which companies are covered and how they should comply. The rule applies only to federal contracts awarded or amended after January 15, 2009, that meet the simplified acquisition threshold of $100,000. Subcontractors that flow from the direct contract are also covered by this requirement.