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DHS Announces Plans to Rescind No-Match Rule

The Department of Homeland Security (DHS) recently announced that it will propose a regulation that would rescind the controversial No-Match Letter Rule that was originally issued in 2007, but was blocked by a court order and has never been in effect.  That rule established procedures that employers would, for all practical purposes, be required to follow if they received a Social Security Administration No-Match Letter or notices from the Department of Homeland Security that called into question worker eligibility information provided.  Accordingly, it appears, for the time being, that the No-Match Rule movement is dead.  While the potential new regulation would appear to remove a potential substantial burden from the shoulders of employers across the country, it also removes the possibility of utilizing the no-match rule as a “safe haven” where employees were terminated, pursuant to the provisions of the rule.

In a separate development, the DHS announced support of a new regulation which would require compliance with the E-Verify system for those employers who seek or are awarded certain government contracts.  As a footnote, DHS’ Secretary Napolitano, as Governor of Arizona, signed state legislation which required all employers in Arizona use E-Verify.  It appears that the Administration will push ahead with full implementation of the rule starting on September 8, 2009.