In the last issue of our Newsletter (August 2007), we reported on the federal regulations that had been issued with respect to “no-match letters” sent by the Social Security Administration. The regulations, known as the “Safe-Harbor Procedures for Employers Who Receive a No-Match Letter,” provided a specific series of actions that an employer must take when receiving a no-match letter. However, shortly after the Safe-Harbor regulations were issued, a consortium of unions and business groups filed a motion for preliminary injunction, contending that the regulations were invalid for a variety of reasons. On October 10, the United States District Court for the Northern District of California issued an injunction. American Federation of Labor v. Chertoff, Case No. C 07-04472 CRB. Therefore, for now, employers are not required to follow the procedures set forth in the regulations and, more importantly, are not required to terminate employees who fail to remedy a no-match letter within the 90-day deadline set forth in the regulations.
As this issue develops, we will continue to keep our readers informed.