As reported in our last update (“Social Security No Match Temporary Ban Extended Ten More Days”), on October 1, 2006, U.S. District Judge Charles R. Breyer of San Francisco extended the previously issued nomatch letter temporary restraining order for an additional ten (10) days. In extending the order, Judge Breyer commented that he felt that the nomatch letter regulations placed “a potentially enormous burden on the employer.”
Based on Judge Breyer’s comments, it was not surprising then that on October 10th he granted a temporary injunction that barred the enforcement of the new regulations entitled Safe-Harbor Procedures for Employers Who Receive a No-Match Letter. These final regulations, which were to be effective September 14, 2007, required employers to terminate employees if social security number mismatch issues could not be resolved after 90 days. In issuing the injunction, the judge wrote that “the government’s proposal to disseminate no-match letters affecting more than eight million workers will, under the mandated timeline, result in the termination of employment to lawfully employed workers.” The temporary injunction remains in effect until overturned on appeal or until the underlying lawsuits are resolved.