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September 10, 2007

ISSUE 1183

COURT TEMPORARILY DELAYS DHS NO-MATCH REGULATION

A federal court in San Francisco blocked the Department of Homeland Security’s (DHS) no-match rule Aug. 31 from taking effect as scheduled. The ruling provides employers with additional time to make sure that they are ready to comply if and when the no-match rule does become effective.

Ruling on the request for a temporary delay in the effective date of the rule, the court found that the industry and labor organizations requesting the action had raised serious questions about the validity of the rule and that they would suffer irreparable injury if it went into effect. The court therefore indefinitely delayed the effective date of the no-match rule and ordered DHS and SSA not to implement it as scheduled. The court also set an Oct. 1 hearing date for consideration of the organizations’ request to block the rule.

The order blocking the rule is a legal victory, but it is temporary. The court’s ruling indicates only that the court wanted to take a closer look at the legal arguments than time allowed. It does not necessarily mean that the no-match rule is invalid or that the rule will necessarily be deemed to be invalid in whole or in part. It is very possible that, after more complete considerations, the court will uphold the rule in its entirety.

In fact, the Social Security Administration filed papers in federal court Sept. 5, saying a bureaucratic logjam would result unless the agency was allowed to mail already-prepared no-match letters. Attorneys claimed any delay would cause significant harm to the agency and “interfere with its ability to carry out its core functions.”

FFVA will keep you advised as the case moves forward.
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