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.
