A federal judge has temporarily blocked the implementation of the final "No-Match" regulations issued by the Department of Homeland Security on August 15, 2007, and which were to be effective on September 14, 2007. See our Executive Alert dated August 28, 2007, for details on the new regulations.
U.S. District Judge Maxine Chesney has granted a temporary restraining order sought by the AFL-CIO and affiliated unions to keep the government from implementing the regulations and sending no-match letters. The Social Security Administration ("SSA") had previously announced that an initial 140,000 no-match letters would be issued between September 14, 2007, and November 9, 2007. The restraining order remains in effect until October 1, 2007, when a second federal judge will determine whether to leave the injunction in place pending trial.
In addition to stopping the issuance of the initial 140,000 no-match letters, the injunction means that the new regulations currently do not have full legal effect. However, we do not believe that this should change any employer's response to no-match letters received from the SSA. The government has clearly announced its position on SSA no-match letters in the regulations and the prudent employer should not ignore the regulations pending the outcome of the litigation.
We will monitor this subject and issue client alerts as new information becomes available.