How Business Leaders Can Navigate a Shifting Immigration Policy Landscape

Immigration policy changes under the Trump Administration extend far beyond border security, creating immediate business disruptions from workforce gaps to compliance challenges. The administration’s goal of conducting 15,000 ICE audits annually — up from fewer than 1,000 under the Biden Administration —signals a dramatic enforcement shift that many employers expect will significantly impact their workplaces. Littler Mendelson attorneys Jorge Lopez, Deepti Orekondy and George Michael Thompson outline how policy changes affecting everything from humanitarian parole programs to social media monitoring create new risks for businesses across industries, particularly in hospitality, manufacturing, construction and agriculture. 

President Donald Trump’s second term has brought a host of new immigration-related proposals, policy changes and executive orders. Meanwhile, longstanding executive orders implemented under the Biden Administration, as well as past presidential administrations, are being rescinded. Although major policy initiatives generally require approval by the legislative branch, executive orders have significant influence over the internal affairs of government, especially in the context of immigration. This includes deciding how and to what degree legislation will be enforced, how to deal with emergencies and wide discretion regarding the entry and removal of individuals in the US.

While at first glance, policy changes related to immigration enforcement and visa processing would appear to be an individualized, personal issue, these changes can have drastic and immediate effects on businesses of all types — be it retention and recruitment of their workforce, travel restrictions on specialized knowledge employees and executives and/or an increased focus on legal compliance due to ever-shifting policy changes.

Case in point: Littler’s latest employer survey revealed that 58% of US employers are concerned about potential staffing challenges as a result of immigration-related regulatory changes, while 70% expect enforcement from Immigration and Customs Enforcement (ICE)/Department of Homeland Security (DHS) to have a significant or moderate impact on their workplaces in 2025. 

Given the wide-ranging implications of the Trump Administration’s immigration policies for companies, executives and their compliance teams will have a key role to play in effectively navigating these changes, guiding operational continuity and legal compliance while enabling their businesses to focus on growth and stability in a dynamic political climate.

Overview of major policy shifts

Let’s look at some of these major changes and policy initiatives and the effect they can have on business, including labor shortages, resource allocation and strategic direction.

Mass deportations

One of the major initiatives promoted by the Trump Administration has been a reinvigoration for so-called “mass deportations.” While there was an initial belief that such increased enforcement would be directed at individuals without lawful status or authorization in the US, the reality is the administration has expanded its policies to include ending lawful programs created under previous administrations — and continued under the first Trump Administration — such as temporary protected status and humanitarian parole, each of which provided employment authorization.

The result is already creating disruptions in employer workforces, especially as most of these programs are terminated with little warning, leaving employers scrambling to comply with new enforcement directives while simultaneously preparing to fill potentially large gaps in their workforce.

Less resources for key government agencies

Further exacerbating potential labor issues is the administration’s cost-cutting initiatives being spearheaded by the Department of Government Efficiency, which will likely result in a reduction in staffing for federal agencies involved with benefits processing, such as the US Citizenship and Immigration Services (USCIS)and the US Department of State (DOS) through US consulates and embassies abroad.

As a result, companies can expect an impact on their employees’ abilities to obtain timely work authorization or nonimmigrant visas necessary to enter the US. Such delays will likely create uncertainty for businesses that need to ensure continued workforce availability to meet business objectives and easy travel for senior executives seeking to enter the US for high-level meetings and trainings.

Mounting immigration enforcement

Additionally, the administration has made immigration enforcement a top priority. This goes beyond increased security measures and tools at border crossings, targeting US businesses as well. Again, this impact has been immediate, creating a nationwide rift with employers preparing for unexpected visits from ICE.

Under the Biden Administration, worksite enforcement and general immigration compliance issues were quite relaxed, resulting in less than 1,000 audits a year; even during the Bush and Obama administrations, audits averaged between 3,000 to 3,500 a year. By contrast, the first Trump Administration saw a dramatic shift in traditional worksite compliance of federal immigration laws. For instance, ICE I-9 audits increased to5,981 in fiscal year 2018 and 6,450 in fiscal year 2019, with the stated goal of the administration to reach15,000 audits per year (a goal that was hindered only by the nationwide disruptions caused by Covid-19).The first administration also saw the return of ICE raids after a near 10-year pause.

Now, the second Trump Administration has made clear that they intend to, once again, significantly increase ICE presence and worksite enforcement operations, as stated in an executive order. As such, businesses can expect 15,000 audits per year to be an ultimate goal of the administration and worksite raids to return.

Sweeping travel restrictions

Under the first Trump Administration, we witnessed sweeping travel restrictions that imposed severe limits at US borders and international travel for non-citizens. This included nationwide travel bans on countries deemed a threat to national security and increased scrutiny on travelers from countries identified as maintaining insufficient security standards. At that time, travel bans proved to be a large hurdle from a workforce staffing perspective, as legal immigration was brought to a halt for such travelers. With US consulates limiting resources and appointment availability, qualified foreign workers were unable to enter or return to the US to continue their work. Many businesses faced severe financial repercussions due to their inability to bring in necessary talent.

Under the current Trump Administration, similar travel restrictions are likely. Most recently, the administration issued an executive order titled, “Protecting the United States from Foreign Terrorists and Other National Security and Public Safety Threats.” This order requires enhanced vetting and screening of nonimmigrant and immigrant visa applicants, including those sponsored by employers, in countries that the administration deemed to have deficient security controls; this sets the stage for stricter embassy/consular policies. Notably, the executive order provides for enhanced vetting and screening across federal agencies, particularly regarding the issuance of visas and the admissibility of visa applicants. Countries that may be affected include Pakistan, Venezuela, Cuba, Haiti and Syria, among others.

However, more troubling are the proclamations by the administration to assess “all visa programs to ensure that they are not used by foreign nation-states or other hostile actors to harm the security, economic, political, cultural, or other national interests of the United States.” In effect, the administration has clarified through speech and action that activity considered “anti-American” or “antisemitic” can be grounds for revoking an individual’s visa status or green card. This includes actions like participating in protests to posting on social media. For context, US Secretary of State Marco Rubio confirmed in March that at least300 visas have been revoked by the department, adding that the state department specifically targeted those individuals who were involved in activities that “run counter” to US national interests.

Best practices for business leaders

As a result of the above, business leaders should consider proactively taking the following steps:

Coordinate with legal and HR departments to review current immigration compliance policies and conduct an internal I-9 audits

This includes conducting an internal Form I-9 audit to ensure all such documentation is up to date and valid. Ensure, too, that the relevant staff are properly trained and supervised in the preparation and maintenance of

Form I-9s to reduce the risk of their making common I-9 mistakes. Finally, companies should verify that all internal policies are consistent with state and federal employment verification requirements

Consider enrolling in E-Verify

Administered by the Social Security Administration and USCIS, E-Verify streamlines employment eligibility verification through an online process. However, employers should consult with their legal departments to understand the full pros and cons of E-Verify enrollment. 

Develop clear action plans in coordination with legal and HR to ensure staff are properly trained in the event of a visit from federal agents

Executives should begin creating a crisis management team that is prepared and knowledgeable on action items in the event of a site visit by any government agency seeking to enforce federal immigration laws. Employers should work with legal counsel to create internal policies and memoranda to instruct their employees on what to do and what not to do in the event of a visit from such federal officers. They should also prepare to address any public relations issues that may arise as the result of any federal enforcement actions, such as an ICE raid.

Businesses within the hospitality, manufacturing, construction and agriculture industries are particularly high-priority targets for the administration and should be vigilant in ensuring their internal policies and compliance are up-to-date. 

Littler’s survey, for instance, showed that immigration topped the list of policy changes that manufacturers most expect to impact their businesses in 2025, while nearly 90% of retail/hospitality employers said they expect enforcement by ICE/DHS to have a significant or moderate impact on their workplaces (compared with 70% of all employers). Large employers (those with more than 10,000 employees) are more concerned than their counterparts about ICE/DHS enforcement (84% expect a significant or moderate impact on their workplaces) and workforce staffing challenges (69% expressed concern, versus 58% overall).

While this can undoubtedly create a resource strain on the HR and legal departments of large businesses, proactive measures now can prevent later hefty fines from the federal government as well as potentially unwanted press as the administration seeks to promote successful agency enforcement actions.

Review and revise current company policies with regards to social media activity and travel guidance for employees

Businesses must be more cognizant than ever regarding the social media activity of all employees, including senior executives who frequently travel and/or stay in the US, as any activity deemed “counter” to US national interests can result in visa revocation or lengthy visa processing delays. Again, businesses should direct their legal departments to create travel guidance for all those engaging in international travel, be they returning from abroad or entering the US for the first time, to ensure they are prepared to answer questions and provide relevant documentation to government officials to reduce the risk of unwarranted delays or denials.

Understand restrictions on attorneys and law firms related to immigration benefits

A recent memo issued by the White House titled, “Preventing Abuses of the Legal System and the Federal Court“ specifically targets law firms and attorneys in their representation of clients in immigration proceedings or before “any component of the Federal Government.” While the document focuses on ethical violations, what it does raise is that now, more than ever, executives should be coordinating the representations made on behalf of the company in immigration proceedings and/or filings with federal government agencies. In other words, closely monitoring and coordinating the procedures and representations implemented on behalf of the company is critical.

Prepare to address labor shortages for employees employed through programs targeted for termination

Harsher scrutiny on visa processing and the termination of lawful programs that provided work authorization for individuals in the US will require business leaders to rethink their staffing efforts and perhaps curtail planned expansion efforts. Further, strategic planners must be prepared for an increase in requests from non-US citizen or permanent resident employees seeking sponsorships for permanent residence (aka green cards).

Employees without permanent residence, and the additional protections such a status provides, are likely to feel increased fear given their temporary legal status and push for employer sponsorship for permanent residence sooner than typical company policy dictates; this can be a significant financial burden on employers. Further, such a sponsorship process can be complicated by a slowing economy as the green card conversion process, managed by the Department of Labor, can also be expected to experience significant delays as a result of a downturn in the economy and agency staff shortages.

A difficult road ahead

Collectively, new executive orders, policy changes and shifting federal resource allocation with regard to immigration enforcement and compliance will have a significant effect on long-term strategic planning for businesses in the US.

Under Trump’s order titled, “America First Trade Policy,” the president intends to promote investment and productivity and defend the nation’s economic and national security to benefit American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses. 

In practice, increased immigration enforcement efforts and policy changes regarding visa processing is likely to only increase labor shortages for US businesses. Companies with large multinational staff or reliant on specialized skilled workers seeking to expand their presence within the US, are likely to face hurdles in filling these gaps given the absences already present in the US workforce.

Importantly, increased worksite enforcement actions will undoubtedly result in increased spends in HR and legal departments to ensure up-to-date compliance with federal law and policies. Naturally, this will affect the overall resources available to strategic planners for the current fiscal year and possibly beyond.

Given the vast changes already implemented in just the first few months of this administration, we can expect to see similar changes over the next four years that will create stricter controls over immigration benefits, increased workplace enforcement and a significant increase in immigration compliance audits. If businesses have not already started to prepare for the upcoming changes, now is the time to take proactive measures to prepare for potential changes that may greatly affect their workforce and business operations.

Reprinted with permission from Corporate Compliance Insights. Click here to view the original article.