2025 Immigration & Compliance Updates
Critical insights for US companies, naturalization applicants, and H-1B employers
Compliance Now Critical for US Companies
In January DHS ordered “extreme vetting” of foreign nationals. It has since increased cross-departmental coordination and data sharing, shifted funding and staff to investigative functions and invested in AI and other data-related technologies specifically to escalate enforcement efforts. We expect an increase in Administrative Site Visits, I-9 inspections, and Wage and Hour audits by the government.
How can my company prepare?
Put a rapid response plan in place: Train receptionists and other front-line personnel how to direct a federal officer, identify the key company representative responsible for the substantive response and ensure all relevant documents and information are readily accessible.
Conduct a self-audit: Assess the company's I-9 records and ensure they are in compliance, and confirm that appropriate employees have I-9 training. Note that Form I-9s must be complete, signed, updated where necessary, and must include information to verify the employment eligibility of all employees. The company must retain original, signed Form I-9s for three years from the date of hire or for one year after termination of employment, whichever is later.
Prepare for DOL Wage and Hour Audits: Keep the Public Access Files (PAFs) for employees in H-1B, E-3, and H-1B1 statuses current and available. Conduct self-audits to ensure employees are being paid at least the prevailing wage on a per-pay-period basis, the worksite locations match the LCA, and there have been no material changes to the job duties. Note: this includes ensuring remote employees haven't moved outside of commuting distance from the address listed on the LCA.
Naturalization Applicants Now Subject to Increased Scrutiny
In August, USCIS announced that naturalization applicants will face a more intensive “good moral character” investigation.
What was the prior standard?
A key requirement for naturalization is proof of good moral character (GMC) over the five years preceding the application for naturalization. Historically, GMC has been interpreted to mean an absence of negative factors in the applicant's history, such as criminal convictions and a failure to file and pay US taxes.
What is the new standard?
USCIS officers must now use a “totality of the circumstances” approach when assessing GMC and affirmatively weigh positive and negative factors in each case.
Positive factors: community involvement and contributions, family caregiving and responsibility, educational attainment, stable and lawful employment history, length of lawful residence in the US, and compliance with tax obligations and financial responsibility.
Negative factors: conduct that is “inconsistent with civic responsibility” in the community such as “reckless or habitual traffic infractions” and aggressive solicitation, and failure to show rehabilitation after prior negative conduct. USCIS is now likely to review an applicant’s public social media presence, community records, and tax filings to spot positive contributions or negative patterns that fit the revised criteria.
Who does the new policy affect?
The new policy applies to currently pending and future naturalization applications.
What should I expect?
Be ready to discuss your community ties, employment and educational history, family life, and evidence of rehabilitation after prior negative acts, and to submit documentation to affirmatively prove your good moral character.
NIV Applicants Must Now Interview in Their Country of Nationality or Residence
In a big shift from prior policy, all NIV applicants are now required to schedule their visa interviews in the country where they hold nationality or legal residence. Nationals of countries without routine NIV operations must apply at designated third-country embassies or consulates.
H-1B Visa Changes and the $100k Rule
The recently announced policy creating a $100k entry fee for H-1B visas does NOT apply in all circumstances.
Employers can continue to file H-1B petitions for candidates already in the US in H-1B status without paying the $100k fee.
Per the plain language of the Executive Order, Employers can continue to file H-1B petitions for candidates in the US under a different status ("change of status") without paying the $100k fee. Since the order has gone into effect, we have successfully filed and had receipted H-1B change of status petitions.
Even for cases where the $100k fee is required for reentry to the US, there is a National Interest exception. We will support our client and beneficiary efforts to make the case for exception. Historically, visa holders applied for this exception at a consulate, typically with a supporting letter from the employer explaining why their industry and/or the beneficiary's role was important to the US's national interest. As there is further guidance from the government or reports from the consulates on the process and evidence for this exception, we will share with our clients.
What is the New Wage-Weighted H-1B Lottery Proposal?
The Department of Homeland Security has proposed replacing the random H-1B lottery with a tiered, wage-weighted system. Registrations tied to higher prevailing-wage levels would receive more entries, as follows:
Level IV (highest wage) – 4 entries
Level III – 3 entries
Level II – 2 entries
Level I (entry-level) – 1 entry
Employers would need to certify the SOC code, wage level, and location at registration, with petitions required to match those details. The proposal is open for public comment until October 24, 2025, and if finalized, the earliest impact would be the FY 2027 cap season.
Does this affect current H-1B employees?
No. The proposal only potentially impacts future lottery selections and does not change the status of individuals already in H-1B status.
When would this take effect?
If finalized, the earliest it could apply is the FY 2027 cap season (lottery expected in March 2026).
What about H-1B transfers, amendments, or extensions?
These are not part of the proposal. The rule applies only to cap-subject lottery registrations.
Can the rule still change?
Yes. It is currently a proposal open for public comment until October 24, 2025, and may be revised, delayed, or challenged before becoming final.
Our firm is here for you, to guide you through if this change happens. We will continue to keep you updated as this proposal moves forward.