DHS proposes to rescind Social Security No-Match Rule

Tomorrow, the Department of Homeland Security (DHS) will publish a proposal to rescind the controversial Social Security No-Match Rule while promoting greater participation in E-Verify, IMAGE, and other government programs. DHS had previously announced its intention to rescind the rule in early July amidst support for the E-Verify federal contractor rule.

The Social Security No-Match regulation, originally introduced in 2007 and amended in 2008, established certain mandatory steps and obligations for employers following receipt of a “no-match letter.” These letters, often labeled “Employer Correction Requests,” inform employers of a mismatch between an employee’s W-2 information and the social security records. The regulation also established a “safe harbor” for employers from evidentiary use of no-match letters against them. Implementation of the rule was challenged in federal court, leading to a suspension of no-match letters and enjoinment of the rule.

In tomorrow’s proposal, DHS outlines the basis for its policy change, including a detailed description of E-Verify improvements, new worksite enforcement and community outreach efforts that it will be implementing in the near future. In particular, DHS’s worksite enforcement strategy now includes a restructured process for worksite administrative fines, a debarment policy that prevents employers from receiving Federal contracts when they are in violation of worksite laws, and a Document and Benefit Fraud Task Forces (DBFTF) cooperative to combat the vulnerabilities exploited by identity and document fraud organizations.

Comments can be submitted for 30 days following publication of the rule.