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One week after a judge upheld a government system to check federal contractors’ immigration status, the matter is back in court. Lawyers for business groups including the Associated Builders and Contractors have appealed the requirement that contractors use the E-Verify system.

The system, used to check whether employees can legally work in the country, is currently optional in Oregon. It would become mandatory for contractors working on projects that receive federal money, including stimulus jobs, if it survives legal challenges.

Government lawyers are scheduled to decide today whether to delay the new rule from taking effect until the appeal is settled, said Lawrence Lorber, a lawyer with Proskauer Rose who filed the notice of appeal on Monday. If the rule’s effectiveness is not postponed, Lorber said, he’ll ask the trial judge and, if necessary, the Fourth Circuit Court of Appeals, to put the rule on hold.

In Oregon, where contractors currently choose whether to use E-Verify, local ABC chapter president John Killin said requiring employers to use it adds one more piece of administrative work.

鈥淎 lot of contractors feel they shouldn’t have to be the immigration police,鈥� Killin said.

Other contractors that use E-Verify say it’s simple to use. 鈥淭here’s just not much to it,鈥� said Betty Greiner, human resources manager for JE Dunn Construction Co.

JE Dunn has used the system for two years without incident, Greiner said. 鈥淧eople say it has pros and cons, but we haven’t experienced any cons.鈥�

The E-Verify requirement for federal contractors started with an executive order from former President Bush in June 2008. A rule-making council pushed back the date the order would take effect until the Obama administration could weigh in.

In July, Department of Homeland Security Secretary Janet Napolitano announced her department would enforce the E-Verify requirement starting Sept. 8, although a legal challenge was holding up that target date.

Then, on Aug. 25, Maryland District Court Judge Alexander Williams Jr. sided with the government, clearing the way for the rule to take effect.

Contractor groups have raised practical concerns, claiming E-Verify wasn’t ready for the huge influx of new users. That concern has lessened as the government has spent more on the system, said Rich Meneghello, managing partner for labor law firm Fisher & Phillips’ Portland office.

鈥淭hey’ve started to pour money into it, and they have done well to appropriate sufficient funding that will allow it to catch up with the increase of usage,鈥� he said.

But Meneghello said his main concern remains: 鈥淚f you sign up, as you are required to do, you are giving the federal government open access to audit your books at any point.

鈥淲ith any other employer, if they wanted to audit your immigration documents and paperwork, they would have to give you three days’ heads-up.鈥�

The chance of a particular contractor getting audited is probably slim, Meneghello said. 鈥淚t would be more likely that employers would face database problems,鈥� he said.

鈥淏ut the ones that have potentially more impact are the audits.鈥�