Any employer that uses the failure of the information to match SSA records to take inappropriate adverse action against a worker may violate State or Federal law.
The information you receive from Social Security Number Verification Service does not make any statement regarding a worker's immigration status.
You know, I really didn't believe you at first but it certainly looks like they are trying to put the fear of employers to release people who don't have the proper documentation.
However, it is against the law and by firing someone who's number did not match, I think in the real world would not get them in trouble as long as it's done properly. According to the law we all must have a verifiable ss or green card to work in the US and if a person doesn't then the employer is breaking the law by hiring them and keeping them if their documentation is false. I'm sure you're familiar with I-9's.
Let's be honest, we know perfectly well that the INS is not coming over to pick them up if their numbers come back as false. Even the soc sec admin is stating you should notify them, and wait to see if they can get you the ahem...correct numer, before you do anything.