FCAI Membership Meeting — November 7, 2007
Speaking to over 50 finishing contractors at Walter Payton’s Roundhouse, Attorney John Powers, with Seyfarth Shaw LLP, discussed the Social Security Administration (SSA) ‘No Match’ Letters and business owner’s legal obligations if and when they receive a letter.

Under the current rules, employers that correctly complete I-9 documentation on their employees were granted ‘safe harbor’ from sanctions. However, new rules that were to become effective this past September would have limited the safe harbor protection — until a California Federal judge prohibited the SSA from mailing over 100,000 ‘no match’ letters.

According to Powers, just because you receive a letter, it doesn’t mean you have to take immediate, drastic action against an employee, like termination. Besides opening your company up for a discrimination lawsuit, the ‘mismatch’ could simply have been a typo made by an overworked clerk at the SSA.

Powers advised contractors not to over-react if they receive a letter and not to panic. An unprecedented coalition was formed over this issue that includes the AFL-CIO, ACLU and immigrant rights groups. They filed a lawsuit stating that the new mismatch rule and other actions could lead to discrimination against unauthorized workers.

Watch FCAI publications for updates on this critical issue. Send any questions you have to info@nipdi.com.