Court Stays Lawsuit Over "No Match" Rules While DHS Works On Revisions

11/30/07

As we previously reported, a federal district judge in California issued a temporary restraining order on August 31, 2007, prohibiting the Department of Homeland Security (DHS) from implementing new regulations regarding "no-match" letters issued by the Social Security Administration (SSA), until the court could conduct a hearing on plaintiffs' motion for a preliminary injunction.  AFL-CIO v. Chertoff.  (Background information regarding the new rules is available here: http://www.franczek.com/publications/archives/labor_and_employment/2007/082407.html)

 

On October 10, the court granted the plaintiffs' motion for a preliminary injunction, ruling that the plaintiffs raised "serious questions" as to whether DHS adequately justified the new rules, exceeded its authority in interpreting certain statutory provisions, and failed to provide a final "flexibility analysis" (relating to the regulations' effect on small businesses) required by federal law. 

 

On November 23, the court granted a request by DHS to stay the lawsuit while it works on revised rules intended to address the court's concerns.  DHS advised the court that it expects to finalize the revised rules by March 24, 2008.

 

The preliminary injunction is expected to remain in effect at least until the revised rules are finalized.  In the meantime, employers should continue to monitor this case and the revised rules to ensure that they are in compliance with federal law restricting employment of individuals not authorized to work in the U.S.