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October 15, 2007

ISSUE 1188

JUDGE ISSUES PRELIMINARY INJUNCTION AGAINST DHS NO MATCH REGULATION

A U.S. district court judge on Oct. 10 issued a ruling preventing the Department of Homeland Security from sending out about 140,000 letters affecting more than 8 million workers under its proposed its no-match rule. Judge Charles R. Breyer found that the government’s proposal would “result in the termination of employment to lawfully employed workers.” The judge also found that the letters would cause “irreparable harm to innocent workers and employers.” The judge’s ruling prevents any implementation until the court makes a final ruling after trial of the new DHS rule.

In the suit, the plaintiffs argued that the rule disregards the governing statute; is arbitrary and capricious under the Administrative Procedure Act; is beyond the DHS and the Social Security Administration’s authorized powers; and violates the Regulatory Flexibility Act.

The judge found that the final rule may be arbitrary and capricious and therefore violates the Administration Procedure Act because it did not “supply a reasoned analysis for the change” from the old regulation.

“While the ruling will stop the implementation of the regulation for several months, DHS may merely go back and write a more reasoned explanation of why they are doing what they would like to do,” said FFVA Director of Labor Relations Walter Kates. “By no means is this issue settled.” He added that the judge ruled that DHS does have the authority to issue the rule; however, the way it justifies the rule must be explained in more detail.

The preliminary injunction may be viewed at by clicking here. FFVA Producer Members who have questions may contact the Labor Relations Division at (321) 214-5200.
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