WASHINGTON Many motorcoach operators likely will be impacted by a new amendment to an executive order issued by President Bush.

The order requires all executive agencies and departments entering into contracts to verify the employment eligibility of all persons hired during the contract term by the contractor to perform employment duties within the United States, and all persons assigned by the contractor to perform work within the United States on the federal contract.

At the same time, the Department of Homeland Security designated its "E-Verify program" as the system federal contractors must use to verify employment eligibility.

The order appears to cover contracts issued by the U.S. Department of Defense, meaning those involving bus transportation of military personnel, and those issued by the U.S. Department of Transportation for transportation services.

E-Verify is an Internet-based system operated by the Department of Homeland Security and the Social Security Administration that allows employers to electronically verify the employment eligibility of newly hired workers.

The executive order impacts all companies entering into federal contracts with executive-branch agencies and departments. It obligates the contractors to electronically verify the employment eligibility of all of the employers new hires (regardless of whether those employees perform work pursuant to the federal contract), and all employees (implying new hires and current employees) who will perform work pursuant to the contract.

It is unclear, however, whether the amended order requires employers to perform an E-Verify on current employees assigned to work on future federal contracts. That issue could be resolved when the Department of Homeland Security releases regulations covering E-Verify usage.

It also is not completely clear when the executive order goes into effect.

One analysis of the order by a large law firm said the order is effective immediately for all new federal contracts. However, as a practical matter, implementing the obligation into future contracts likely will take time.