H-1B Lottery Insights Part 2: Filing Options and Key Strategies for FY2026 [Podcast]
In the second part of our two-part podcast series on H-1B visa applications, Kara Lancaster (shareholder, Raleigh) and Meagan Dziura (of counsel, Raleigh) begin with a deep dive into the process of how individuals selected in the H-1B lottery file petitions (including related travel restrictions) the filing options for those selected (including change of status and consular notification), and the timeline for when individuals can enter the United States. Kara and Meagan touch on special provisions for F-1 students, the importance of considering L-1 visa holders, and other visa categories that may also benefit from entering the lottery. The speakers also cover recent updates from U.S. Citizenship and Immigration Services (USCIS), the impact of increased fees, and strategies for managing various employee visa situations.
Listen to part one here.
Canada reveals international student enrolment limits for 2025
Canada reveals international student enrolment limits for 2025. The Canadian government has just released the study permit issuance targets for 2025, along with the breakdown of how those targets will be distributed across the country under the Provincial Attestation Letter (PAL) formula introduced in 2024. Since the government implemented caps on new international students last […]
H-1B Lottery Insights Part 1: From Basics to Registration [Podcast]
In part one of this two-part podcast series on H-1B visa applications, Kara Lancaster (shareholder, Raleigh) and Meagan Dziura (of counsel, Raleigh) discuss recent updates from U.S. Citizenship and Immigration Services (USCIS) and provide valuable insights on how to prepare for the fiscal year 2026 H-1B lottery. Meagan and Kara cover the basics of the H-1B visa, its benefits, and why it is a popular choice among employers. They share practical tips on what steps you can take now to prepare for the registration window, which typically opens in early March, including updates from USCIS and the importance of early planning. The conversation also covers the benefits of the H-1B visa, recent changes to the registration process, and the impact of increased fees on employers.
Navigating OFCCP Changes: Insights on Compliance Post-EO 14173 [Podcast]
In this podcast, shareholders Scott Kelly (Birmingham) and Lauren Hicks (Indianapolis/Atlanta) provide an update on the current status of the Office of Federal Contract Compliance Programs (OFCCP), which has been in flux since President Trump’s inauguration. Lauren and Scott discuss the uncertainty that federal contractors have faced since the new administration issued Executive Order (EO) 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity, which immediately revoked EO 11246 and gave federal contractors and subcontractors 90 days to comply. In addition, they address voluntary compliance options and the considerations for unwinding compliance with EO 11246 (for example, regarding job postings, career websites, self-identification, clauses with vendors and subcontractors, etc.). Lauren and Scott also highlight that the obligations under Section 503 and Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) remain in effect, meaning the annual affirmative action requirements under both programs are still applicable.
A Changing Enforcement Landscape Under the New Administration
As the Trump Administration embarks on its second term, significant shifts in government enforcement priorities are quickly taking shape. Not surprisingly, this administration appears to be focusing on immigration, drug and violent crime offenses, and traditional fraud rather than more novel white-collar enforcement. Additionally, it appears as though the Department of Justice will face potential resource issues due to the efforts of the Department of Government Efficiency (DOGE). Whether that is through hiring freezes, resignations resulting from ending remote work, layoffs, and potential buyouts of federal employees, the reduction of resources could have a substantial impact on staffing for white-collar enforcement cases, which tend to be resource intensive. Nonetheless, businesses and industry professionals should be aware of these evolving trends to ensure compliance and readiness for potential government investigations. Below we highlight what we expect to see throughout this administration’s term.
Immigration: The Trump Administration has reaffirmed its commitment to stringent immigration enforcement. Prior to this administration taking office, agencies like the Department of Labor had been focused on underage labor violations and holding businesses accountable for third party staffing companies. Now, however, the focus will shift to the removal of anyone not legally in the United States, likely leading to an increase in ICE raids and I-9 audits, including in places like hospitals, schools and places of worship, all of which used to be safe havens for this type of enforcement activity.
DEI and False Claims Act Liability: President: President Trump’s executive order aimed at eliminating diversity, equity, and inclusion (DEI) policies introduces new compliance challenges for federal contractors and grant recipients. The order reverses federal contracting requirements dating back nearly 60 years, which obligated federal contractors and subcontractors to implement affirmative action programs. The January 21, 2025, executive order requires federal contractors and grant recipients to agree that their “compliance in all respects with all applicable Federal anti-discrimination laws is material to the government’s payment decisions” under the False Claims Act (FCA). Second, it requires federal contractors and grant recipients to certify that they do “not operate any programs promoting DEI that violate any applicable Federal anti-discrimination laws.” The new certification and materiality requirements create heightened FCA risk for clients who participate in government programs and may incentivize whistleblowers to initiate qui tam actions.
Health Care: Health care enforcement, particularly those involving the FCA, is anticipated to continue at a steady pace. During President Trump’s first term, health care enforcement actions increased in his second year and remained steady thereafter, so we can likely expect a similar trend this term. Additionally, the newly established Department of Government Efficiency (DOGE) is taking steps to actively mine data for fraud, particularly in Medicare and Medicaid, which could lead to an increase in enforcement activities in the healthcare sector.
Foreign Corrupt Practices Act: While the Department of Justice (DOJ) achieved record enforcement levels for Foreign Corrupt Practices Act (FCPA) cases during the previous term, President Trump has signed an executive order directing the DOJ to pause criminal prosecutions related to the bribing of foreign government officials under the FCPA and instructing Attorney General Pam Bondi to prepare new guidelines for enforcement. The executive order comes a week after Attorney General Pam Bondi had already announced via a memo that the DOJ would be scaling back laws governing foreign lobbying transparency and bribes of foreign officials. In the memo, Attorney General Bondi also disbanded the National Security Division’s corporate enforcement unit and directed the Department of Justice’s money laundering office to prioritize cartels and transnational crime.
SEC Enforcement: We expect a major scaling back on the SEC’s focus on cryptocurrency, internal accounting and disclosure control violations. President Trump’s nominee as SEC chairman, Paul Atkins, is a known supporter of the crypto industry. Instead, we anticipate a renewed focus on traditional securities fraud cases, including like retail investor protection, Ponzi schemes, and insider trading. Under Chair Gensler, corporate penalties and disgorgement reached record highs, but with a Republican-controlled SEC we are likely to see smaller penalties and an adherence to disgorgement limitations set by the Supreme Court.
Antitrust: Antitrust enforcement is expected to pivot away from merger scrutiny towards addressing concerns related to “Big Tech” and alleged censorship. Additionally, there may be enforcement actions targeting alleged collusion on DEI issues, reflecting the administration’s executive orders and stated policy goals. Industries under high public scrutiny and foreign corporations should be particularly vigilant in preparing for potential agency scrutiny.
As the enforcement landscape continues to evolve, it will be crucial to stay informed and proactive.
What You Need to Know to Prepare for an ICE Raid or Audit
On January 20, 2025, President Trump signed an executive order declaring a national emergency at the southern border of the United States and allowing for the use of federal funding for border security and the deployment of armed resources to the region. The following day, the Department of Homeland Security issued a directive rescinding policies that limited enforcement in sensitive locations such as churches, schools and hospitals.
Since this directive was implemented, employers should be prepared to handle ICE immigration enforcement actions or inspections at these locations as ICE raids, which target undocumented employees are not announced in advance. Businesses, schools, employees, and students must be ready and well prepared to address immigration actions by ICE during the foreseeable future.
Preparing requires designating a key representative, such as HR, legal counsel or a senior administrator, to interact with ICE officers and training front-line staff to direct officers to the representative. Employers should be prepared with written response plans and should be aware of their rights—and the rights of their employees.
Immigration Policy Tracker: January 20—February 5, 2025
The first three weeks of the new presidential administration resulted in numerous executive orders and agency actions impacting foreign nationals living and working in the United States. These actions were far-reaching, with potential impacts for employers and sponsored employees across the United States. This article discusses several of the actions that may have the most impact on employers, including updates on visa screening, potential travel restrictions, the sunset of temporary protected status (TPS) for Venezuela, and increased enforcement in sensitive locations, which include hospitals and universities.
Quick Hits
Visa Issuance Review: Several orders have the potential to impact trade visa issuance, visa screening procedures, and the potential for limitations on admission to the United States.
Sunset of TPS for Venezuela: Executive agencies are charged with reviewing humanitarian status programs, resulting in the first termination of temporary protected status programs.
Increased Enforcement: DHS rescinded a long-standing policy on conducting enforcement actions in sensitive locations, and President Trump issued an executive order that may impact universities with foreign students.
Review of Trade Agreements, Visa Issuance Procedures, and Potential for Travel Bans
The “America First Trade Policy” revisits and reviews the United States-Mexico-Canada Agreement (USMCA), as well as other existing U.S. trade agreements in consultation with other executive departments and agencies.
The outcome of this review has the potential to impact trade visa categories, including TN, E-1, E-2, E-3, and H-1B1 visas.
The “Protecting the United States From Foreign Terrorists and Other National Security and Public Safety Threats” executive order charges executive agencies, including the U.S. Department of State, with reviewing visa application vetting procedures. Agencies need to make a recommendation within the next sixty days if certain countries and their citizens require enhanced vetting or a full suspension of admission to the United States.
This order has the potential to increase visa processing times and may result in a partial or full suspension of entry for citizens from certain countries.
Humanitarian Programs Under Review
Last week, the 2023 TPS designation for Venezuela was officially terminated, sunsetting that program as of April 7, 2025. This was the most recent humanitarian program to come under review. The administration also suspended U.S. participation in the refugee admissions program for the next ninety days under the “Realigning the United States Refugee Admissions Program” executive order. All humanitarian parole and temporary protected status designations have been ordered to be reviewed by the U.S. Department of Homeland Security (DHS) pursuant to the “Protecting the American People Against Invasion” executive order.
TPS and other humanitarian parole programs account for over a million individuals in the United States, and a sunset of work authorizations in these categories may have impacts across the U.S. labor market.
Immigration Enforcement Expanded
Immigration enforcement was a central element of the incoming administration’s policy platform, and the first three weeks saw numerous executive orders relating enforcement actions.
DHS revoked a long-standing policy limiting enforcement actions at sensitive locations, which included schools, medical facilities, places of worship, social services establishments, children’s gathering places (playgrounds and childcare centers), places for disaster or emergency response and relief, wedding and/or funeral sites, and public demonstrations (parades, marches, demonstrations, and rallies).
With the rescission of the prior sensitive areas policy, enforcement actions may now be conducted in locations that had previously not experienced U.S. Immigration and Customs Enforcement (ICE) activity. ICE officers can conduct enforcement actions—which include arrests, interviews, searches, and surveillance—in sensitive areas without requiring authorization from senior DHS officials.
ICE officers are encouraged to use discretion, “along with a healthy dose of common sense” when conducting arrests, searches, and interviews in these locations.
On January 29, 2025, President Trump issued an executive order that affirms the administration will “us[e] all available and appropriate legal tools” to combat antisemitism, especially at higher education institutions. The order requests federal agencies to submit reports “[w]ithin 60 days of the date of [the] order” that include, among other data, inventory of all pending administrative complaints, complaints under Title VI of the Civil Rights Act of 1964, and court cases against universities alleging civil rights violations relating to antisemitic activities on campus.
The order also directs agencies to recommend ways to educate higher education institutions on the grounds for inadmissibility, enabling such institutions to monitor, report, and investigate relevant activities by foreign national students, faculty, and staff, potentially leading to their removal.
Key Takeaways
Executive orders impacting foreign national workers in the United States have created uncertainty for employers and employees. Given the stated policy platform of the administration, employers can expect additional policy changes in the coming weeks.
Kristen M. Tully also contributed to this article.
Attorney General Bondi’s Day One Orders for DOJ
Shortly after her confirmation, and just after her swearing-in by Associate Justice Clarence Thomas, U.S. Attorney General Pamela Bondi issued fourteen memoranda that seek to reform the Department of Justice by rescinding prior guidance, issuing new guidance, and establishing new priorities for the nation’s chief law enforcement and prosecuting agency. We examine below the actions taken by Attorney General Bondi.
“Elimination of Diversity, Equity, and Inclusion” (DEI): Two of the memos focus on the elimination of prior Diversity Equity and Inclusion (DEI) efforts at the Department and in the private sector. These directives stem from President Trump’s executive order on January 21, 2025 concerning “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”. The first memo requires “[a]ll Department materials that encouraged or permitted race- or sex-based preferences as a method of compliance with federal civil rights laws” to be rescinded and replaced with new guidance. The second memo directs theDOJ’s Civil Rights Division to “investigate, eliminate, and penalize illegal DEI and DEIA preferences, mandates, policies, programs, and activities in the private sector and in educational institutions that receive federal funds.” For a full summary of the DOJ’s focus on DEI, go to the blog post by our colleagues in Labor and Employment.
Immigration. This memo directs the DOJ to withhold federal funding from, and pursue enforcement actions against, sanctuary cities. The memo cites 8 U.S.C. § 1373which provides that state or location jurisdictions “may not prohibit, or in any way restrict, any government entity or official from sending to, or receiving from, the Immigration and Naturalization Service information regarding the citizenship or immigration status, lawful or unlawful, of any individual.” The memo warns that any sanctuary cities that violate this statute will receive a cut in federal funding cuts.
Elimination of Cartels. This memo directs DOJ personnel to focus its efforts to eliminate cartels and transnational criminal organizations (TCOs). The memo identifies various enforcement mechanisms and resources that may be used in carrying out the directive. Notably, the memo calls for the Department to shift the focus of its prosecutions under the Foreign Corrupt Practices Act (FCPA) to “the criminal operations of Cartels and TCO”. Additionally, the memo removes the requirement that the Fraud Section of the Criminal Division handle all investigations and prosecutions under the FCPA, now permitting any U.S. Attorney’s Office to initiate charges with only 24 hours of advance notice to Main Justice required. It is unclear whether, and to what degree, DOJ will continue its pending corporate investigations and prosecutions and/ or initiate new ones.
Joint Task Force October 7. This memo focuses on the creation of the Joint Tasks Force October 7 to “seek[] justice for victims of the October 7, 2023 terrorist attack in Israel” and address ongoing antisemitic threats in the United States.
Charging, Pleas Negotiations, Etc. This memo outlines general policy regarding charging, plea negotiations, and sentencing for prosecutors. It lays out the Department’s criminal enforcement including immigration enforcement; human trafficking and smuggling; transnational organized crime, cartels, and gangs; and protection of law enforcement personnel. The memo also disbands the Foreign Influence Task Force and the National Security Division’s Corporate Enforcement Unit. [I think we should also note that the guidance is now to charge the most serious, readily provable crime, with the highest “recommended” sentence under the guidelines. Quote the language.]
“Zealous” Advocacy on Behalf of the U.S. This memo directs DOJ to “zealously defend the interest of the United States.” The memo emphasizes the responsibilities DOJ attorneys have to enforce the laws of the United States, but also highlights their responsibility to “vigorously defend[] presidential policies and actions against legal challenges on behalf of the United States.” This memo suggests discipline for DOJ attorneys that decline to sign briefs or appear in court on personal grounds or “otherwise delay or impede the Department’s mission.”
Recession of Biden Administration Guidance. Three of the memos roll back specific directives made by former Attorney General Merrick Garland who served in the Biden Administration, including those that pertained to the interpretation of guidance documents, third-party settlements to non-governmental, third-party organizations, and the prioritization of environmental prosecutions.
Death Penalty. Two memos focus on the death penalty—one memo directs U.S. Attorney’s Offices “to assist local prosecutors in pursuing death sentences under state law against the 37 commuted inmates” who’s sentence former President Joe Biden previously commuted, while the other memo revives the federal death penalty by lifting the moratorium on federal executions and provides for the re-review of pending cases potentially eligible for death.
DOJ Employees Back to the Office. This memo directs DOJ employees to return to work in-person by February 24, 2025 and reinforces President Trump’s January 20, 2025 Presidential Memorandum on the same matter.
Weaponization Work Group. This memo targets “abuses of the criminal justice process, coercive behavior, and other forms of misconduct.” The directive addresses Trump’s January 20 Executive Order concerning “Ending the Weaponization of The Federal Government” by establishing a “Weaponization Work Group,” tasked with reviewing criminal and civil enforcement over the last 4 years, and reporting to the White House “instances where a department’s or agency’s conduct appears to have been designed to achieve political objectives or other improper aims rather than pursuing justice or legitimate governmental objectives.”
5 Benefits Of The Dutch American Friendship Treaty (DAFT) Visa
The DAFT visa is a unique agreement between the Netherlands and the United States. It aims to create more entrepreneurial opportunities for U.S. citizens in the Netherlands. You can enjoy several benefits if you are looking to establish a business in Europe. However, it is best to get some legal advice before you proceed with […]
Key Takeaways on New U.S. Tariffs on Canada, China and Mexico Imports
On Feb. 1, 2025, the White House published new executive orders imposing tariffs on goods imported from Canada, Mexico and China citing national security threats of illegal immigration and drugs and statutory authority under the International Emergency Economic Powers Act (IEEPA).
Specifically, the executive orders impose a 10 percent tariff on imports from China and a 25 percent tariff on imports from Mexico and Canada, excluding Canadian energy imports, which will carry a 10 percent tariff. Below are initial highlights from the orders and from the Federal Register notices published shortly after the orders:
The effective date and time of the tariff actions is on or after 12:01 a.m. Eastern time on Feb. 4, 2025, except for tariffs on Mexico and Canada, which have been deferred for one month, until March 4, 2025.
The IEEPA tariffs appear to cover every imported commodity from Canada, Mexico, and China, with the exception of limited statutory exclusions on personal communications, donated articles, informational materials (e.g., certain publications, films, and artwork), and transactions ordinarily incident to travel
The executive orders are silent on whether there will be a product exclusion process, akin to the exclusions for Section 301 and Section 232 tariffs
The executive orders include a retaliation clause that should Canada/Mexico/China retaliate against the U.S. in response (i.e. tariffs on U.S. exports), then the “President may increase or expand in scope the duties imposed under this Executive Order to ensure the efficacy of this action.”
Drawback (refund) claims and the $800 de minimis exclusion are not available under these IEEPA tariffs
In a prior post on potential tariffs, we had noted the possible use of IEEPA to impose immediate tariffs. No president has used IEEPA to impose tariffs, although President Richard Nixon used a predecessor statute to IEEPA to impose a 10 percent tariff on all imports in 1971.
What does this all mean, and what is next for importers and stakeholders affected by these tariffs? Below are a few issues and questions to keep in mind:
What exactly will be the U.S. response to the announcement of retaliatory measures? Canada announced tariffs of 25 percent on $155 billion worth of American goods. These tariffs target products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. Mexico initially announced plans to impose retaliatory measures. But since that time, Mexico and Canada have agreed to take action at the border, resulting in a one-month deferral of the application of IEEPA duties against Mexico and Canada and suspension of any reciprocal tariffs.
IEEPA tariffs on China are 10 percent, but these are on top of existing Section 301 tariffs that are 25 percent on most goods from China. Interestingly, there will now be a smaller group of products from China that are subject to lower Section 301 duties (List 4A, 7.5 percent) or even no Section 301 duties. Thus, if the suspended Canada and Mexico tariffs ultimately go into effect, imports of those products from China may actually be subject to lower duties than imports of the same products from Canada and Mexico.
For China, the Federal Register is silent on the applicable rule of origin, although it is anticipated that “substantial transformation” will be the applicable rule. For Canada, there will actually be two applicable rules of origin for IEEPA tariffs – USMCA marking rules of origin and the “substantial transformation” legal standard. This will have particularly interesting implications for importers of goods produced in Canada from Chinese-origin materials. Indeed, an FAQ released by the White House states that IEEPA tariffs will be in addition to any other tariffs imposed under other authorities.
Tayo Osuntogun, Michelle Rosario, and Yusra Siddique contributed to this article
H-1B Cap Registration to Open on March 7, 2025
USCIS announced that the H-1B Cap initial registration period will open March 7, 2025, at 12:00 PM EST and will close at 12:00 PM EST on March 24, 2025. Employers take note: if you employ or are seeking to employ foreign students or other foreign talent in the U.S., this tiny window of opportunity is the only period in 2025 wherein employers are eligible to register any foreign talent they may seek to sponsor for the H-1B Cap lottery. This is the only method by which employers may sponsor a foreign national who has never held H-1B status previously. The registration will continue to be an electronic process. Over the years the USCIS online registration system has experienced temporary outages and technical glitches so be sure to identify your H-1B Cap population early. Also, remember that the filing fee for the H-1B Cap Registration has increased from $10.00 to $215.00 per applicant registered.
Impactful Changes to Specialty Occupation
The H-1B Rule implemented on January 17, 2025, clarifies the definition of a Specialty Occupation. With the revised definition of specialty occupation criteria, employers may want to review the educational background of an H-1B Cap applicant more carefully than in previous years to ensure it aligns with the offered position.
Previously, the law at 8 CFR 214.2(h)(4)(iii)(1) indicated that one of the criteria for an H-1B petition was that the position normally requires a bachelor’s or higher degree or its equivalent for entry into the particular position.
That provision has been revised and that criteria now requires that a U.S. bachelor’s or higher degree “in a directly related specific specialty, or its equivalent” normally serve as the minimum requirement for entry into the particular “occupation.”
Insightful Analysis
If a company seeks to sponsor a foreign worker for an opened position that may be filled by an applicant with a degree in any subject, then that position may not immediately qualify as a specialty occupation position. Similarly, even if a potential H-1B worker is an amazing candidate, if the candidate has a degree that seems unrelated to the position offered, it could be tougher to gain an approval under those facts. In either of these scenarios, USCIS may issue a tough Request for Evidence (RFE) under those circumstances. Do not be afraid to use the H-1B Cap Registration as a tool in your hiring strategy but do use an experienced immigration practitioner who will issue spot and mitigate risk to maximize chances of success.
FY 2026 H-1B Cap Lottery Alert: Registration Period and Important Changes to USCIS Online System
U.S. Citizenship and Immigration Services (USCIS) has announced that the fiscal year (FY) 2026 H-1B cap registration period will open at noon ET on Friday, March 7, 2025, and will remain open until noon ET on Monday, March 24, 2025.
Quick Hits
The fiscal year 2026 H-1B cap registration period will open at noon ET on Friday, March 7, 2025, and will remain open until noon ET on Monday, March 24, 2025.
Prospective cap-subject H-1B petitioners and their representatives must use a USCIS organizational account online to register beneficiaries and pay required fees.
USCIS’s new H-1B registration fee of $215 per registration will be in effect for this year’s H-1B cap season.
USCIS announced enhancements to the organizational account system to improve functionality for paralegals, legal representatives, and those preparing Forms I-129 online.
Similar to last year’s registration process, prospective petitioners and their legal representatives must use a USCIS organizational account online to register beneficiaries and pay registration fees.
This year brings USCIS’s higher registration fee requirement of $215 per registration, originally announced by USCIS in January 2024. In light of H-1B cap registration volume and higher fees, the U.S. Department of the Treasury increased its daily credit card transaction limit from $24,999.99 to $99,999.99 per day.
USCIS will again use the beneficiary-centric selection process originally launched in FY 2025. Through this process, registrations will be randomly selected by unique beneficiary rather than by registration. USCIS intends to start releasing lottery results by March 31, 2025.
USCIS reminded stakeholders that petitioning employers must create an organizational account through their online system if they did not create an account during the FY 2025 H-1B cap registration process. Additionally, while legal representatives may add company clients to their accounts at any time, it will not be possible to create H-1B cap registrations until the registration period opens on March 7, 2025.
USCIS also announced enhancements to the organizational account system it launched last year, including the following:
The ability for a paralegal to work with more than one legal representative. This will allow a paralegal account to prepare H-1B registrations, H-1B petitions, and requests for premium processing for multiple attorneys (representatives) within the legal team organizational account.
An easier process for legal representatives to add paralegals to different company clients.
The ability to upload a spreadsheet of H-1B beneficiary data into the system, allowing for that data to prepopulate into H-1B registrations.
Prepopulation of some data from an H-1B registration into fields within Form I-129 (if prepared online).
Key Takeaways
Launched in 2024, USCIS’s successful organizational account system and beneficiary-centric selection process are here to stay in the FY 2026 H-1B cap registration lottery, and USCIS has already announced online system improvements based on feedback last year from petitioners and legal representatives. Employers may want to mark their calendars with this year’s dates and check their USCIS online account access as they prepare for this year’s H-1B cap season.