Department of Homeland Security Rescinds No-Match Rule

(July 8, 2009)

The Department of Homeland Security (DHS) issued a press release rescinding the No-Match Regulations issued in 2007.  DHS indicated that it would be proposing a new regulation rescinding the 2007 No-Match Rule, which was blocked by court order shortly after issuance and has never taken effect.  That rule established procedures that employers could follow if they receive SSA No-Match letters or notices from DHS that call into question work eligibility information provided by employees. These notices most often inform an employer many months or even a year later that an employee's name and Social Security Number provided for a W-2 earnings report do not match SSA records-often due to typographical errors or unreported name changes.  It is our expectation that the government will seek a stay of the current no-match litigation while it rescinds the rule.

As a reminder, under current law the receipt of a no-match letter by an employer does not provide just cause to terminate employees.