Receipt of "no match" letter from Social Security Administration didn't constitute knowledge that employees were undocumented
Aramark v. Service Employees (9th Cir 07/16/2008)
http://caselaw.lp.findlaw.com/data2/circs/9th/0656662p.pdf
The employer received a "no match" letter from the Social Security Administration (SSA), indicating that the employer had reported information on some of its employees that did not match the SSA's records. The employer gave the affected employees three days to correct the mismatches. When the employees failed to comply, they were discharged. At grievance arbitration, an arbitrator concluded that the employees were discharged without just cause under the parties' collective bargaining agreement. He ordered them reinstated with backpay. The trial court vacated the arbitration award on the basis that it violated public policy. The 9th Circuit reversed the trial court and confirmed the arbitration award.
The employer argued that the arbitration award violated the public policy expressed in the Immigration Reform and Control Act of 1986 (IRCA). Under IRCA, employers are subject to civil and criminal liability if they knowingly employ undocumented workers. Under IRCA, the "knowing" element can be satisfied by "constructive knowledge." The court observed that IRCA provided a sufficient public policy basis for vacating an arbitration award, but concluded that receipt of the "no match" letters did not constitute knowledge (or constructive knowledge) that the employees were undocumented. The court noted that "[a social security number] discrepancy does not automatically mean than an employee is undocumented....In fact, the SSA tells employers that the information it provides them 'does not make any statement about ... immigration status' and 'is not a basis, in and of itself, to take any adverse action against the employee.'" The court thus concluded that the arbitrator did not err in determining that the employees were discharged without just cause.
