FEDERAL EMPLOYMENT VERIFICATION: GUIDANCE ON NO MATCH LETTERS**

NADA Regulatory Review, Summer 2007

DHS Issues Guidance on No-Match Letters

The Department of Homeland Security (DHS) has issued guidance, effective Sept. 14, 2007, describing safe harbor procedures for new hires and, in particular, how to address “no match” letters from the Social Security Administration (SSA) and DHS.

Dealerships may receive “no-match” letters when employee names or Social Security Number (SSN) information on I-9 Employment Eligibility Verification or W-2 forms do not match government records. “No-match” letters should not be ignored and identified discrepancies should be addressed within 90 days. If a discrepancy persists, the dealership may have to terminate the subject employee or risk a finding by the DHS that it had constructive knowledge of an illegal alien being employed. To avoid sanctions, including penalties, dealerships receiving “no-match” letters should:

1. Check the employee’s file to see if the discrepancy is due to a clerical error.
   If so, make corrections and inform the SSA within 30 days. To verify the SSN,
   call the SSA at 800/772-6270, or go to www.ssa.gov/employer/ssnv.htm or www.ssa.gov/employer/ssnvadditional.htm. Record the manner, date, and
   time of SSN verifications in employee files.

2. If the discrepancy is not due to clerical error, require the employee to confirm
   that the dealership’s records are correct. If possible, make corrections and
   inform relevant agencies within 90 days or complete a new I-9 form without
   the suspect SSN using employee documentation that conforms with the I-9
   identity requirements, including photograph and other biographic data. Where employees claim records are correct, require them to pursue the matter
   personally with the relevant agency within the 90-day window. Dealerships
   should not assume that a discrepancy is the result of any wrongdoing on the employee’s part nor take action against the employee based simply on the
   receipt of a “no-match” letter.

DHS has a Safe Harbor Information Center addressing “no-match” questions:

www.ice.gov/partners/safeharbor/index.htm. Inquiries also may be directed to 800.421.7105. For general information on I-9 forms, please obtain and review NADA’s publication L. 21-E, A Dealer Guide to Compliance with the Immigration Reform and Control Act of 1986.

**Note: While the “no-match” letter enforcement process has been challenged in general courts by the AFL-CIO and others, NADA recommends that dealers adhere to these new guidelines. 

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TITLE PROCESSING: PUEBLO COUNTY DISCONTINUING USE OF
THE DR 2842 - SVID SUPPLEMENTAL FORM

Pueblo County has announced that it will discontinue acceptance of the DR 2842 – Secure and Verifiable ID Supplemental form. This form was originally developed and put in place by the State Titles and Registration Section to provide a form to capture this information, while the other standard title processing forms could be updated to include the same information.  While the state (nor any other county of which we are aware) has not announced any cut-off date of this supplemental form, counties can always implement their own requirements regarding such forms, depending upon the advice of their attorney.  Pueblo county has been advised by their attorney to move away from this form.  For now, Pueblo has indicated they will not reject paperwork yet due to the DR 2842, but dealerships should begin moving away from using this form when selling to customers who reside in Pueblo County.  

As a reminder, for use at all other counties, the latest DR 2842 has a revision date of May 23, 2007, and can be found at the following:  www.revenue.state.co.us/mv_dir/formspdf/2842.pdf