Other articles by Eunice Moscoso:

Many border-crossers now 'self-deporting,' study says Chaotic mess is predicted if U.S. mandates E-Verify Bill would punish nations that reject own emigrants Latinos sending less money out of U.S. DREAM Act immigration bill gets shot down in Senate Photo-match tool verifies legal workers Dem presidential candidates vow amnesty for unlawful entrants Bipartisan Senate group plans new push for immigration bill Study: Immigrants don't raise U.S. crime rate Bill: College, service OK for entrants' kids

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Starting next year, most federal contractors must prove that their employees are in the United States legally.

U.S. Citizenship and Immigration Services issued a final rule on the requirement Friday, mandating companies use a federal system — known as E-Verify — that compares employee information to electronic government records.

Federal contracts of more than $100,000 issued after Jan. 15, 2009, will be subject to the new rule. Subcontracts of more than $3,000 for services or construction are also included.

Angelo Amador, director of immigration policy at the U.S. Chamber of Commerce, said Friday that experts at his group were still studying the rule and that they were concerned about several things, including that it could be expensive for smaller businesses.

"It is going to be costly, hurting employers," he said.

In addition, Amador said that the rule states that the president can make E-Verify mandatory for all U.S. businesses, which appears to contradict a law passed by Congress.

Critics of E-Verify — including civil-rights organizations and Hispanic groups — denounced the rule. They say that E-Verify relies on faulty government databases and would cause thousands of citizens and legal residents to be mistakenly rejected for work. They also say it would cripple the Social Security Administration.

"At a time when our economy is under duress, people are without work and struggling to stay in their homes, why would the federal government expand a policy known to prevent innocent Americans from earning a living," said Caroline Fredrickson, director of the Washington legislative office of the American Civil Liberties Union.

Jonathan "Jock" Scharfen, acting director of the federal citizenship and immigration agency, recently touted the E-Verify program, saying that it is the best means available for determining job eligibility of new hires and the validity of their Social Security numbers.

Federal officials also said that criminals with outstanding warrants have been caught through the E-Verify program, which is currently voluntary in most states.