Immigration Issues Top of Mind When Hiring

GOVERNMENT CHANGES AT THE FEDERAL LEVEL HAVE MADE HIRING SKILLED FOREIGN WORKERS EXPENSIVE, TIME-CONSUMING, AND MORE RISKY.

By Lisa Goulian Twiste, Contributing Writer On Apr 7, 2026

With the current focus on immigration policy in American politics and law enforcement, many companies are taking a hard look at their own employment practices to make sure they’re in compliance with the latest rules and regulations. Whether it’s keeping up with recent changes to H-1B visa rules, being extra careful with Form I-9 (Employment Eligibility Verification) procedures, or doing self-audits to know if any employees are undocumented or have an expired H-1B, businesses are becoming increasingly aware that stronger government immigration compliance scrutiny could expose them to greater legal risks.

This is especially relevant in New Jersey, where a higher-than-average number of employers rely on global talent in areas like healthcare, pharmaceuticals, technology, finance, higher education, and professional services. “For many businesses, immigration is top of mind when hiring is tight, and the workforce includes international talent. Even companies that don’t sponsor frequently are paying more attention because enforcement and compliance are being discussed more often, and a single issue can disrupt operations,” says David Nachman, Esq., managing attorney at the Nachman Phulwani Zimovcak (NPZ) Law Group (VISASERVE), with New Jersey offices in Ridgewood and Raritan.

“The practical effect is that businesses will be spending more time – and money – upfront on planning and documentation,” he continues. “The employers who do best are those who treat immigration as a workforce strategy, not an emergency task.”

H-1B Update

Since President Donald Trump took office last year, the H-1B visa program has undergone significant changes, including the introduction of a $100,000 H-1B filing fee for certain filings (up from roughly $2,000 to $5,000 previously); replacement of the random H-1B lottery with a wage-weighted selection system that favors higher-paid, higher-skilled roles; and increased compliance scrutiny through a new U.S. Citizen and Immigration Services (USCIS) H-1B fraud detection and integrity unit, which works closely with the Department of Labor (DOL) to identify potential violations of Labor Condition Application (LCA) requirements.

“Under this coordinated framework, USCIS can refer suspected wage, working condition, or worksite location violations directly to the DOL for investigation, increasing employer exposure to audits, penalties, and debarment,” says Elizabeth LaRocca, a partner at FBT (Frost Brown Todd) Gibbons in Newark. “This expanded interagency scrutiny, combined with the new wage-based lottery, marks a fundamental shift toward a more restrictive, compliance-heavy H‑1B environment that raises the cost and complexity of sponsorship for employers across the economy.”

LaRocca also notes that New Jersey employers – recipients of 4,651 H-1Bs last year, fourth highest in the nation – may feel the sting more acutely because the state relies heavily on immigrant labor in both the high-skilled and essential‑services sectors. And while large corporations may be better equipped to pay the $100,000 filing fee, startups, universities, nonprofits, and small employers who have long relied on the H-1B program may be shut out or forced to shift to candidates already in the US.

“Healthcare systems depend on foreign‑trained nurses, physicians, and medical technologists, and visa delays or denials can leave critical roles unfilled,” she says. “Nonprofit hospitals are worried about the $100,000 H-1B fee because many of them are not cap‑exempt, even though they operate as nonprofits.”

H-1B caps are also affecting the state’s large biotech and pharmaceutical corridor, which relies on chemists, data scientists, regulatory specialists, lab researchers and other specialized workers who often come from other countries through H-1Bs and other programs. When H-1B caps limit access to this talent, companies can face delays in R&D timelines, higher recruitment costs, and increased competition for the limited pool of US workers with advanced STEM degrees, LaRocca says. Additionally, restaurants, hotels, food processors and grocery distribution centers employ significant numbers of immigrant workers, making these industries particularly vulnerable to I‑9 audits and ICE enforcement actions. “When workers fear instability, absenteeism rises, retention drops, and employers face higher training and onboarding costs,” LaRocca adds.

Sound Policy Needed

According to Nachman, the H-1B vetting process can vary widely, with larger employers tending to have a more structured onboarding process regarding HR workflows, standard Form I-9 procedures, document retention policies, and the E-Verify Program for certain roles or locations, while small- to mid-sized employers often rely on informal processes, which is where mistakes are more likely to occur. And mistakes can be costly.

Employers faced with an I-9 inspection, which is a formal, administrative audit requiring them to produce employee work authorization records within three days, can be subject to fines ranging from $288 for simple paperwork violations to $28,619 for knowingly hiring, recruiting, referring, or retaining unauthorized workers. In extreme cases, New Jersey companies employing undocumented workers can face criminal charges and/or debarment from government contracts, with fines potentially reaching hundreds of thousands of dollars. “A written policy is one of the most practical risk-management tools an employer can have,” Nachman says. “It ensures consistency, reduces panic during an audit or government agency visit, and helps prevent well-intentioned mistakes.”

According to Caroline Murphy, chair of Roseland-based Chiesa Shahinian & Giantomasi Law’s Immigration Group, employers should prepare in advance for an ICE raid, establishing an ICE Response Team with a chain of command, conducting best practice training, and ensuring receptionists and security staff know who should be contacted in case of an ICE action. In other words, anyone involved in any part of the business that touches on immigration should be aware of what their role is in any given scenario.

“I find employers recognize the urgency of putting in place robust plans for I-9 compliance and ICE raids in the current climate,” she says. “Most employers who hire foreign nationals do so out of necessity, often for positions that are hard to hire for within the US, so we are not seeing a slowdown in employers wishing to file visa or green card petitions for employees.”

Next Steps

Looking ahead, LaRocca says the top three issues facing businesses are continued tightening of enforcement, higher compliance expectations, and ongoing processing delays. Employers should be preparing for more audits, more scrutiny of visa petitions, and a greater need for internal HR compliance infrastructure.

“I have been practicing immigration law for 30 years, and I have never received as many calls as I am now for I-9 assistance and ICE readiness,” she says. “ICE enforcement has steadily increased worksite enforcement activity across the country, and we are seeing a rise in I-9 audits, targeted investigations, and fraud‑related inquiries.”

Again, Nachman emphasizes the importance of employers being “proactive” as opposed to “reactive,” standardizing job descriptions, confirming worksites and reporting structures early, and planning immigration strategies well ahead of deadline.

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