On Oct. 10, the U.S. District Court for the Northern District of
California issued a preliminary injunction barring implementation
of the Department of Homeland Security's (DHS') rule dictating how
employers must respond to Social Security Administration (SSA)
"no-match" letters, which SSA issues when W-2 forms do not match
its records. It is now up to DHS to respond, but the agency likely
will not attempt to address the judge's decision until the next
administration at the earliest.
The court agreed that DHS did not comply with RFA. The agency
did not give small businesses a voice in the rulemaking process as
it was supposed to do, and DHS Secretary Michael Chertoff
erroneously certified that the rule would not significantly affect
small businesses under RFA.
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