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The immigration landscape for U.S. employers has shifted dramatically. The past six months alone have produced escalating enforcement activity, sweeping proposed changes to temporary visa categories, and reshaped adjudication standards — all while active litigation continues to alter the legal picture in real time. Below are five critical developments and recommended action items for each.

1. SURGE IN GOVERNMENT INVESTIGATIONS

Employer-facing immigration enforcement has reached levels not seen in recent memory. ICE’s rate of Notices of Inspection (NOIs) for I-9 audits has increased significantly, and DHS has broadly expanded the types of I-9 violations that can result in immediate fines.

The Department of Labor has suspended PERM labor certification processing for several major employers while also launching “Project Firewall,” which gives the Secretary of Labor broad discretion to target employers for H-1B compliance investigations.

The State Department’s Fraud Unit has also greatly expanded investigations of U.S. employers involving visa fraud at U.S. consulates.

What Employers Should Do:

  • Conduct audits of I-9s (including a review of audit-trail sufficiency for electronic platforms),  PERM audit files, and H-1B public access files.
  • Review PERM recruitment methodology and strategy to ensure compliance with current enforcement trends.
  • Establish a protocol for responding to government site visits or subpoenas.

2. PROPOSED CHANGES TO THE H-1B PROGRAM

The H-1B program faces its most significant restructuring in decades. On August 25, 2026, DHS proposed an additional $103,265 fee for cap-subject H-1B petitions — on top of the existing $100,000 Presidential Proclamation fee (currently subject to litigation; see Section 5 below).

In October 2026, DHS also proposed a regulation that would eliminate the 60-day grace period for H-1B (and other) workers whose employment is terminated. If finalized, the rule would effectively require departure from the country immediately upon termination, without an opportunity to seek new employment or change immigration status.

What Employers Should Do:

  • Begin assembling your H-1B cap list earlier than usual (i.e., now) and assess wage-level classifications in light of the weighted lottery.
  • Model the financial impact of potential cumulative fees on your H-1B budget and determine company policy should the fees take effect this cap season despite potential litigation.
Continue Reading Five Immigration Developments That Will Define Employer Compliance in 2026

We are pleased to share with you The Global Employer – Global Immigration & Mobility Quarterly Update, a collection of key updates from Asia Pacific, Canada, Philippines, Singapore, South Africa, the United Kingdom, and the United States.

Click here to view.

Recent developments affecting Temporary Protected Status (TPS)[1] beneficiaries have created uncertainty for employers managing work authorization and reverification obligations. In response, California Attorney General Rob Bonta has reminded employers that changes affecting TPS beneficiaries do not change employers’ existing obligations under federal and California law. The guidance underscores a key compliance point: employers should not assume that an employee whose TPS designation has been affected is no longer authorized to work, and employers must continue to follow standard I-9, reverification, anti-discrimination, and anti-retaliation requirements.

The guidance reflects California’s longstanding approach of reinforcing workplace protections for immigrant workers during periods of federal immigration policy change. While TPS-related developments may create uncertainty for employers, the Attorney General’s message is that employers should continue to follow existing verification and reverification rules rather than impose additional requirements or take adverse action based on assumptions regarding an employee’s immigration status. The guidance further encourages employers to consult immigration counsel before acting based on an employee’s TPS status, recognizing that affected employees may remain authorized to work through another immigration status, a pending application, or another provision of law.

Among other things, the guidance reminds employers:

  • To follow current employment verification requirements. Employers must complete the Form I-9 to verify an employee’s identity and authorization to work in the United States and should monitor USCIS and E-Verify for current TPS termination and work authorization expiration dates.
  • That employment authorization may remain valid beyond the expiration date shown on a work permit. Employers should not rely solely on the expiration date printed on an Employment Authorization Document (EAD). Work authorization may be automatically extended through a Federal Register notice, USCIS notice, court order, or applicable DHS regulations. Before acting based on an apparent expiration date, employers should confirm whether an automatic extension or another basis for continued work authorization applies.
Continue Reading California Reminds Employers: TPS Changes Do Not Alter Workplace Obligations

Employment law developments across Asia Pacific continue at a rapid pace, with regulators expanding their enforcement powers, unions gaining influence, employees becoming more willing to challenge workplace decisions, and governments introducing significant reforms affecting workforce management.

Our latest AP Employers’ Forum 2026 Highlights and Insights report provides practical guidance on key developments across Australia…

On August 6, 2026, the IRS released Fact Sheet FS-2026-13, substantially revising and replacing FS-2026-01, its January 2026 guidance on the new deduction for qualified overtime compensation enacted by the One Big Beautiful Bill Act (OBBBA). The revised guidance reflects the transition from the temporary 2025 reporting relief period to a more formal compliance regime applicable for tax years 2026 through 2028.  As a reminder, the IRS provided transition penalty relief for tax year 2025 to excuse the requirement that employers and other payers report qualified overtime compensation separately on Forms W-2, 1099-NEC, and 1099-MISC. See Notice 2025-62.

While the updated fact sheet includes numerous technical revisions, several changes are particularly significant for employers, payroll providers, and employees seeking to claim the deduction. Most notably, the IRS emphasizes that beginning in 2026 employees generally may claim the deduction only based on amounts separately reported by employers, increasing the importance of accurate overtime calculations and information reporting.

Key Changes in FS-2026-13

The August update to the FAQs:

  • Removes guidance applicable solely to the 2025 transition year.
  • Clarifies deduction limitations and timing rules, including that the same principles governing when a payment is treated as wages for income tax withholding purposes apply to determine when qualified overtime compensation is paid.
  • Expands guidance regarding Fair Labor Standards Act (FLSA) coverage and exemptions.
  • Provides detailed Form W-2, Form 1099-NEC, and Form 1099-MISC reporting rules.
  • Adds federal income tax withholding guidance.
  • Clarifies the requirement that qualified overtime compensation be separately reported to support the deduction.
Continue Reading IRS Updates FAQs on the Qualified Overtime Compensation Deduction: Compliance Obligations for Employers

The Department of Labor (DOL) issued Technical Release 2026‑02 on June 17, 2026, providing critical clarity for employers evaluating whether to offer contributions to “Trump Accounts” under IRC sections 530A and 128; contributions to Trump accounts could be made as of July 4, 2026. The guidance addresses a key open question flagged in our earlier post regarding whether these arrangements would trigger Employee Retirement Income Security Act (ERISA) plan status, which would implicate technical rules regarding fiduciary duties, claims and appeal procedures, and plan reporting and disclosures, among others.

The DOL concluded that Trump Accounts and related employer Trump Account Contribution Programs (TACPs) will generally not constitute “employee pension benefit plans” under ERISA Title I, even if funded in whole or in part by employer contributions pursuant to IRC section 128. The guidance provides favorable clarity and removes a potential stumbling block for employers considering establishing a TACP.

DOL Technical Release 2026-02

Prior to Technical Release 2026‑02, ERISA classification was a key unresolved risk for employers, particularly given that TACPs require a written employer program and could resemble benefit plans.

DOL’s conclusion that TACPs will generally not be subject to ERISA removes a major barrier for employers. The rationale underlying the guidance includes that Trump Accounts are individually owned Individual Retirement Accounts (IRAs), not employer‑established retirement plans; that in most cases, benefits accrue to a child (dependent), not the employee, which weighs against ERISA plan characterization; and that the accounts can be funded by multiple sources (family, government, employers), reinforcing their non‑employer‑centric design.

Continue Reading DOL Clarifies ERISA Treatment of Trump Accounts: What Employers Need to Know

In our recent post, AI Regulation on Hold in Colorado—But Employer Risk Isn’t, we flagged that delay did not mean diminished risk. That continues to hold true. Colorado has now approved a comprehensive rewrite of its AI law, while Illinois regulators are advancing practical disclosure requirements for employers using AI in employment decisions.

The direction is clear: AI oversight in the workplace is moving forward—and becoming more operational.

Colorado: Recalibration, Not Retreat

Colorado’s rewrite reflects an effort to make its AI framework more workable—but not less relevant for employers.

Key points:

  • Employment uses remain in scope: AI tools used in hiring, promotion, and other employment decisions continue to be treated as “high risk.”
  • Governance expectations remain: Employers will still need risk management and oversight frameworks.
  • Transparency still matters: Notice and documentation obligations continue, even as details evolve.
Continue Reading Colorado and Illinois Advance AI Transparency Obligations for Employers
  • An overview of key global immigration and mobility issues to consider related to immigration, employment, compensation
…

May is Mental Health Awareness Month—a timely reminder for employers to take a fresh, thoughtful look at how workplace policies and practices support employees’ mental health. This includes ensuring compliance with evolving requirements around leave, reasonable accommodations under the ADA, and broader mental health considerations. As the legal landscape continues to shift, even well‑intentioned…