On November 14, 2007, the Social Security Administration (SSA) confirmed that it would not be issuing "no-match" letters to employers based on information it obtained from employers in 2006. We have been urging clients to audit their Forms I-9 and W-2 in view of the vigorous efforts of the Department of Homeland Security (DHS) to eliminate unauthorized workers by putting the squeeze on employers. "No-match" letters alert employers to a disparity between the name and Social Security number on a W-2 they filed. As we have previously reported, the DHS regulations would have subjected employers to criminal liability for not aggressively responding to "no-match" letters.
Federal Courts in California stayed the implementation of onerous DHS regulations this fall. DHS has responded by stepping up workplace raids. It is likely that there will be new regulations in the coming year, and more workplace raids. Employers should not view the SSA announcement as a reprieve from assuring that all workers are properly documented, but rather as a window to make sure they are.
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