|
April 30, 2008
Implementation of the Department of Homeland Security’s
“No-Match” Rule is Estimated to Cost Businesses $1 Billion Per
Year
According to a study commissioned by the U.S. Chamber of
Commerce and submitted to the Department of Homeland Security
(DHS) on April 25, 2008, implementation of the “No-Ma t ch” Rule
will result in tens of thousands of U.S. citizens and lawful
immigrant workers losing their jobs and cause businesses to lose
at least $1 billion dollars annually.
Businesses should be aware of the potential penalties and fines
they may face if the rule is implemented. The rule states that
if workers named in the letters are unable to correct their
Social Security records within a 90-day period, employers must
terminate them or risk prosecution for violating immigration
laws. If the rule were finalized, employers may end up
terminating tens of thousands of workers, causing businesses to
lose at least $1 billion dollars per year.
Currently, the Social Security Administration (SSA) sends
no-match letters to workers and employers when names or Social
Security numbers listed in employers’ records do not match SSA’s
records. The problem is that the no-match letters do not address
a worker’s immigration status; they simply identify a name or
number mismatch. Further, such mismatches may be triggered by
clerical errors or use of multiple surnames. Thus, the SSA
databases generating the letters do not provide complete or
accurate information regarding workers’ immigration status.
Harvard Economist Richard Belzer, hired by the U.S. Chamber of
Commerce, predicts that the total number of authorized workers
who could wrongly lose their jobs under the rule may reach as
high as 165,000. Further, according to experts retained by the
DHS, over nine million workers will receive the no-match
letters, requiring at least four million workers to physically
visit the SSA to correct the mistake. (Small
Entity Impact Analysis, prepared by DHS’ consultant,
Econometrica, Inc., January 15, 2008).
GT will continue to provide timely updates on the status of the
No-Match Rule. For more information, please review the recent GT
alert on this topic.
GT Alert
The DHS No-Match Rule: The Long, Strange Trip Continues
- By Dawn Lurie and Efren Hernandez
|
|
