On November 15, 2007, Eldon Kakuda, a Principal and member of the Firm’s Employment and Labor Group, presented to the Illinois State Bar Association’s Labor and Employment Law Section. He began by providing the attendees with an interesting timeline and commentary on how the social security number became the accepted standard of individual identification and record keeping in United States.
Mr. Kakuda also provided the attendees with a legal update on the Social Security No-Match letter issue. After reviewing the preliminary injunction that was issued by Judge Charles Breyer of the U.S. District Court for the Northern District of California on October 10, 2007, which barred the implementation of the final regulations that established safe-harbor procedures for employers who received a no-match letter (see our October 22nd Update), Mr. Kakuda reviewed the recent Illinois law that prevents employers from participating in the federal “Basic Pilot Program” now known as the E-Verify system. The federal government has sued the State of Illinois to prevent the implementation of this law.
Mr. Kakuda informed the attendees that this past week, the Social Security Administration indicated that it will not be mailing out any social security number no-match letters to employers in 2007, and it will not likely issue any letters until Spring 2008. Each year, approximately 136,000 employers receive “no-match” letters affecting about 9 million employees.
Finally, noting the uncertainty at both the federal and state levels because of the pending lawsuits, Mr. Kakuda noted that employers in Illinois should not utilize federal “Basic Pilot Program / E-Verify” until the state and federal courts provide additional guidance