All posts by Legislative Update
On January 6, 2026, the Trump administration announced it will release only 35,000 supplemental H-2B visas for the year. This is nearly a 50% cut from the approximately 64,700 additional visas provided annually over the last three years. The Change: Every year, there is a "base cap" of 66,000 H-2B visas. Because this is rarely enough, recent administrations have added a "supplemental" batch of about 64,700 more. President Trump has reduced this extra batch down to 35,000. The Result: There will be roughly 30,000 fewer legal seasonal workers available nationwide compared to last year. Impact on Industries Various industries that often rely on H-2B workers may see changes in operations or ability to provide the same level of service if the reduction in visas translates to staffing shortages. These industries include hotel and hospitality, restaurants and bars, gas stations and convenience stores. Agriculture may also be affected, specifically landscaping and seafood. Field work typically relies on H-2A visas. Impact on Business Owners A smaller worker pool may result in higher wages to compete, driving up service prices. With demand far exceeding the 35,000 cap, many businesses may struggle to fill open positions, limiting their ability to operate at full capacity. Stricter "irreparable harm" standards mean businesses that lose the lottery face permanent financial loss.
Maintaining accurate records is a cornerstone of workforce compliance. To help employers stay up to date, E-Verify recently reintroduced a convenient feature on January 5 that allows users to manage Point of Contact (POC) information directly within their accounts. Why This Update Matters Per the MOU, employers are required to maintain current contact information for all representatives associated with E-Verify. Keeping your POC information updated is the simplest way to meet this requirement, ensuring you receive critical program updates and maintain smooth communication with USCIS. Who can manage POCs: Program and Corporate Administrators can manage all company POC information. General users on employer agent accounts can also manage POC data for their clients. Access vs. Contact: Adding someone as a POC does not automatically grant them account access. To manage cases, they must also be added as a Program Administrator. The MOU Signatory: The original signatory is automatically designated as a POC. While they cannot be removed, their information can be updated. If the signatory leaves the company, ensure at least one active POC is assigned to the account. How to Update Your Info To review your records, log in and navigate to your Company Profile (for Program Admins) or Corporate Profile (for Corporate Admins) via the user menu. Employer agents can find this under the Clients menu. We encourage all users to log in at their earliest convenience to verify that their company’s POCs and users are accurate. Staying proactive today prevents compliance headaches tomorrow. For questions regarding these changes, contact the E-Verify team at e-verify@uscis.dhs.gov
As state and federal agencies ramp up efforts to curb unemployment fraud, employers are facing greater scrutiny and steeper consequences for compliance gaps. But fraud isn’t the only risk on the rise. The end of 2025 brought major regulatory shifts that impact tax credits, employment eligibility, and payroll compliance—making it critical for HR and payroll teams to approach 2026 with clear strategy and up-to-date tools. Watch the webinar on-demand: Don’t miss our combined session, “Dangers of UI Fraud” and the Q4 Regulatory & Legislative Update. You’ll get expert commentary on fraud trends, policy shifts, and employer action steps. Access the webinar replay here Identity Theft Is Still the Top UI Fraud Threat In our UI Fraud webinar, Experian experts confirmed that identity theft remains the #1 type of unemployment insurance fraud, especially in remote and hybrid workforce models. Claims filed under the names of active employees or fake identities can go undetected—until the employer gets hit with the tax consequences. Two common types include: Stolen Identity Claims: Fraudsters file under real employee names using stolen credentials. Claim Hijacking: A legitimate claimant’s benefits are redirected after their account is accessed fraudulently. Employers must act quickly when fraud is suspected—report it to the state and advise employees to monitor or freeze credit. New Wave: Fake Employers, Bigger Payouts In addition to fraudulent claims, state agencies are now targeting fictitious employers—shell companies created to submit fake wage reports and collect benefits for non-existent employees. These schemes are more sophisticated and harder to catch without employer cooperation during wage audits. The Cost of Fraud: You Pay the Price UI fraud doesn’t just harm state trust funds—it directly impacts employers through: Increased unemployment tax rates Audit triggers Delays in legitimate claims Reputational damage in state systems Even though only 1.3% of overpayments are caused by employers, late or incorrect responses can have costly consequences. Shutdowns and Enforcement: Compliance Doesn’t Sleep While the federal government endured a record-breaking shutdown in late 2025, enforcement didn’t stop. In fact: ICE and DHS continued audits and E-Verify processing IRS deadlines remained in effect States expanded wage theft and unemployment laws The message is clear: compliance responsibilities remain active, even during federal disruptions. State Law Spotlight: Wage Theft, AI, and UI Expansion Employers must also prepare for new state laws, including: Rhode Island: New-hire wage theft notice requirements starting 2026 Illinois: AI restrictions in hiring if discrimination is detected Washington & Oregon: New UI benefits for striking workers, increasing trust fund pressure And these changes aren’t outliers—over 1,000 AI-related bills were introduced nationwide in 2025, with paid leave and wage transparency laws also gaining traction. Preventing Fraud Is a Team Effort: What You Can Do Experian recommends a multi-pronged approach: Respond quickly to all UI claims Audit payroll, separation processes, and seasonal hiring protocols Watch for claims from current employees or unknown names Report suspicious activity to state agencies Verify employee identity before completing I-9s Educate teams to recognize and flag red flags And most importantly—implement or strengthen your internal I-9 audit process. A reliable electronic I-9 system with audit trails, E-Verify integration, and correction workflows is essential in today’s enforcement environment. Regulatory Look Ahead: I-9, WOTC, and Tax Compliance In tandem with fraud risk, 2025 delivered high-impact policy changes, including: Elimination of auto-extensions for EADs, increasing document expiration risks A new W-4 and W-2 draft for 2026, requiring updated payroll processes and tip tracking under the One Big Beautiful Act (OBBA) A pending decision on WOTC renewal, which expired 12/31/25. No bill has passed, but retroactive approval is likely—employers should continue capturing WOTC data. Unemployment trust funds also remain underfunded in most states, which may lead to taxable wage base increases and higher FUTA taxes in 2026 and beyond. Final Takeaways: Your 2026 Fraud & Compliance Readiness Checklist Begin or expand internal I-9 and UI auditsUse electronic I-9 platforms with real-time E-VerifyTrack WOTC applicants even if renewal is delayedTrain staff to spot identity and payroll fraudMonitor state laws affecting payroll, hiring, and separationReview IRS changes to W-4 and W-2 ahead of 2026 Get prepared now—not after you’ve been hit with an audit or fraudulent claim. Watch our webinar replay to hear directly from compliance and unemployment experts. For ongoing insights, tools, and thought leadership, visit the Experian Employer Services Blog.
An E-Verify data disposal alert means there are important steps employers should take before January 4, 2026 to stay compliant.
On December 31, 2025, U.S. District Judge Trina Thompson issued a significant nationwide injunction, voiding the Department of Homeland Security’s (DHS) previous decision to terminate Temporary Protected Status (TPS) for approximately 60,000 to 89,000 nationals from Honduras, Nepal, and Nicaragua. For employers, this means immediate changes to how Employment Authorization Documents (EADs) for these employees must be handled during the Form I-9 process. Current Status and Employer Requirements (2026) As of January 1, 2026, the following legal protections are in place: TPS status and work authorizations for eligible nationals from Honduras, Nepal, and Nicaragua are fully reinstated. Employers are legally required to honor the Employment Authorization Documents (EADs) of affected TPS holders. Even if a card appears expired on its face, it may be subject to an automatic extension by operation of this court order. Federal officials and employers are barred from taking adverse actions, such as termination or detention based solely on the previously announced (and now voided) termination dates for these specific countries. What This Means for Form I-9 Compliance? Employers should review their active Form I-9 files for employees who previously presented TPS-based EADs from these three countries. Do Not Terminate: If an employee's work authorization was set to expire due to the now-voided DHS termination, they remain authorized to work. Monitor for USCIS Guidance: We expect USCIS to publish a formal Federal Register notice shortly providing specific instructions on "Additional Information" notations for Section 2 of the Form I-9. Note that the government may appeal this decision to the Ninth Circuit. However, the injunction remains in effect nationwide until further notice. Note: For specific EAD auto-extension dates and official documentation to keep with your I-9 records, please refer to the USCIS Temporary Protected Status page.
Haiti’s TPS designation and related benefits will terminate on Feb. 3, 2026, at 11:59 p.m. Completing Form I-9 Form I-766, Employment Authorization Documents (EADs) with a category A12 or C19 and an original “Card Expires” date of Feb. 3, 2026; Sept. 2, 2025; Aug. 3, 2025; Aug. 3, 2024; June 30, 2024; Feb. 3, 2023; Dec. 31, 2022; Oct. 4, 2021; Jan. 4, 2021; Jan. 2, 2020; July 22, 2019; Jan. 22, 2018; or July 22, 2017, will expire Feb. 3, 2026. Employers must reverify TPS Haiti beneficiaries who presented these EADs before they start work on Feb. 4, 2026. Recommended Employer Actions Reverify Form I-9: Employers must reverify employment authorization for Haiti TPS holders before the termination date. Use Supplement B and request updated documentation from affected employees. Monitor E-Verify Alerts: Stay alert for notifications regarding expiring or revoked Employment Authorization Documents (EADs). Avoid Discrimination: Ensure compliance with anti-discrimination provisions when requesting documentation. Employers should prepare for potential workforce impacts and communicate clearly with affected employees. For further guidance, consult DHS and USCIS resources or legal counsel.
IRS announces TY25 penalty relief for reporting under the One Big Beautiful Act. Learn what this means for year-end compliance and W-2 changes for TY26.
The IRS recently announced penalty relief associated with OBBBA tax reporting for tips and overtime wages.
DHS has terminated TPS designation for South Sudan. Here are next steps employers should take for compliance.
DHS ends 540-day work authorization extension for many EAD holders starting Oct. 30, 2025. See who’s affected.
DHS issued an interim final rule ending automatic extension of EADs for certain applicants who file Form I-765 on or after October 30, 2025.
E-Verify has resumed after a pause during the government shutdown. Learn what steps employers should take now to maintain compliance.
FNU/LNU naming issues are affecting immigrants when it comes to employment eligibility, travel and legal compliance.
Learn how the reopening of the DACA program affects I-9 requirements, work authorization, and employer compliance responsibilities.
DHS proposes wage-based H1-B lottery reform, prioritizing higher-paid applicants. Learn how this may affect employers and applicants.
New H-1B visa reform imposes a $100K petition fee for 2026 lottery. Learn how it affects employers and applicants.
DHS announced the termination of Syria’s Temporary Protected Status (TPS). Learn key dates, employment implications, and guidance.
Starting in October 2025, the maximum weekly benefit amount (WBA) for unemployment benefits will increase from $504 per week to $869 per week. Scheduled increases to the maximum WBA have been delayed for years because the state had an outstanding advance from a Title XII loan which was initiated to keep the New York Department of Labor Division of Unemployment’s trust fund solvent. The loan and interest were both paid in full recently so the new, higher WBA can now go into effect. Employers will also see an increase in the taxable wage base (TWB) for 2026 and a decrease in the unemployment tax rate schedule to be used for the 2026 tax rates. The taxable wage base for 2026 is $13,000 which represents an increase of $200 from 2025. The tax rate table to be used for 2026 is not yet finalized because it is based on the Size of Fund Index (SOFI) at the end of the rate fiscal year, which is September 30. Effective Date October 1, 2025 for the increase in the maximum WBA January 1, 2026 for the taxable wage base increase January 1, 2026 for the decrease in the tax rate schedule Implication to Stakeholders The substantial increase in the maximum WBA could negatively impact employers doing business in the state. This is a 72% increase in the weekly benefit amount. Since benefits paid from an employer’s fund balance have an impact on future tax rates, this increase could signal increases in tax rates for years to come. The increase in TWB may also mean an increase in taxes for employers doing business in the state starting in 2026. The decrease in the tax rate schedule for 2026 should mean lower taxes for employers however, that, coupled with the increase in the TWB could mean a wash for tax liability year over year (2025/2026). That remains to be seen. Recommended Action Employers should monitor their benefit charge statements and tax rates as soon as they are received to prevent unwarranted charges from hitting their account and increasing tax rates.