No-Match Letter Regulation on Hold

The recent update to the “No-Match Letter” issued by the U.S. Department of Homeland Security (DHS) (Ice Updates No-Match Letter Rules) has come under fire even before coming into effect.
On August 31st the Northern California district court issued a temporary restraining order on the regulation which was to go into effect on September 14, 2007. The case in question AFL-CIO et al v.Michael Chertoff et al is a lawsuit against the “no-match” letter regulation.

Case against No-Match Regulation

The case in question is being pursued by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) along with a few other organizations against Department of Homeland Security (DHS) and the Social Security Administration (SSA).

The federal court has come to the conclusion that the plaintiffs have raised reasonable doubts regarding rule which, the plaintiffs have argued, goes supercedes the the statutory authority of the DHS and SSA.

So, until the two defending organization appeal and argue the case in court, the Rule will remain temporarily suspended.

The “No-Match” Rule

The “no-match” regulation, if it comes into effect, will establish a number of legal obligations and penalties for an employer who receives a no-match letter from the SSA i.e. a letter informing them that there is a discrepancy in the SSN information of the employee and the SSA’s own records.

Ramification of the delay

For the employers, the delays will a give a few more days or weeks of freedom from the responsibility of checking employee SSN records. However, SSA is concerned that the delay will financial losses for the agency.