Nearly two years after they were issued, the Department of Homeland Security is going to rescind regulations dealing with Social Security "no-match" letters but intends to move forward with regulations requiring certain federal contractors to use the federal E-Verify system.
“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 time frames to ensure the letter did not become evidence the employer had constructive knowledge an employee was not authorized to work in the United States. DHS Secretary Janet Napolitano announced the agency will be proposing a new regulation rescinding the so-called No-Match Rule. The regulations were blocked by a federal court shortly after they were issued and have never gone into effect.
Although DHS is abandoning the no-match regulations, Napolitano said the the Obama Administration will push ahead with full implementation of the E-Verify federal contractor rule starting September 8, 2009. The Administration delayed the effective date of the rule four times in total in order to complete its review of the rule.
The E-Verify rule requires certain federal contractors and subcontractors use the federal government's E-Verify program, an internet-based system that checks employee names and identification numbers against federal databases. Although verification that an employee is eligible to work in the United States normally occurs only with new hires, the regulation requires certain contractors and subcontractors to also verify the eligibility of all existing employees directly performing work under the covered contract. The rule applies to prime contracts of $100,000 or more with a performance period of more than 120 days and subcontracts of $3,000 or more for for services or construction if the prime contract is subject to the rule. It does not apply to contracts for commercially available off-the-shelf items or where all work is performed outside the United States.
For more information on the E-Verify rule, feel free to contact Tim Gebhart.