On July 8, the Department of Homeland Security (“DHS”) announced the Obama Administration’s intent to “push ahead with full implementation” of the final rule requiring federal contractors to use the E-Verify system to verify employees’ authorization to work in the U.S. The E-Verify rule is expected to apply to federal solicitations and contract awards government-wide effective September 8.
At the same time, DHS announced its intent to issue a new regulation rescinding the rule establishing procedures for employers to follow up on receipt of a “no-match letter” from the Social Security Administration (“SSA”) or DHS. According to DHS, the E-Verify system will address the data inaccuracies that can result in no-match letters in a more timely manner, and will provide a more effective tool for identifying unauthorized individuals and combating illegal employment than will the SSA’s No-Match program.
As you may recall, the implementation of the SSA’s No-Match Rule was enjoined by the Federal District Court for the Northern District of California shortly after its issuance and, as such, has never taken effect. The No-Match Rule, if implemented, would have required the SSA to include in the mailing of its no-match letters – which are sent to employers when an employee’s name and Social Security number from their W-2 do not match SSA records – a separate insert letter from DHS explaining how employers are required to resolve such discrepancies, often referred to as safe harbor procedures. It remains to be seen whether the DHS’ E-Verify System will accurately address such inquiries.
Should you have any questions regarding your business’ present obligations with respect to E-Verify, or what, if anything, your businesss should be doing to prepare for the potential of mandatory E-Verify, please do not hesitate to contact us.