A federal court in California has issued a permanent injunction preventing the Department of Homeland Security (“DHS”) from implementing regulations dealing with the Social Security “no-match” letter.
“No-match” letters are letters employers receive from the Social Security Administration indicating the name and Social Security number submitted for an employee do not match the agency’s records. The regulations set forth specific steps employers who received such a letter would have to take within specified timeframes to ensure the letter did not become evidence the employer had constructive knowledge an employee was not authorized to work in the United States.
The “staggering” effect compliance with the regulations would have on employers factored in the ruling. The judge noted that if the regulations went into effect DHS and Social Security “will immediately mail no-match packets to 140,000 employers, identifying no-matches for approximately 8 million employees.” In addition, labor organizations presented evidence the failure to resolve no-match issues within the 90 days allowed by the regulations could result in mass layoffs.
The suit was brought by a variety of groups, including the AFL-CIO, the American Civil Liberties Union and the U.S. Chamber of Commerce. The injunction blocks implementation of the regulations the lawsuit is resolved or an appeals court overturns the injunction.
Additional information on the no-match regulations can be found in an article in our publications section or this news article, both written by DEHS lawyer Tim Gebhart.