US Visa Risks for Workforce: Strategies to Stay Ahead

Recent statements, intentions, and actions from the Department of Homeland Security (DHS), the Department of Labor (DOL), and US Citizenship and Immigration Services have triggered unusual activity in the offices of those of us who work in international tax and compliance. What’s particularly striking is how international tax regulation has shifted from being something companies only address after a warning from authorities to becoming a core part of operational continuity strategies for hundreds of businesses in the United States.

According to DHS data for fiscal year 2024, approximately 3.6 million individuals currently reside in the United States under nonimmigrant visas. These workers have seen their residency status become more vulnerable given current regulatory shifts. Some examples include:

• Changes to H-1B Visas (Specialty Workers)
• Higher salaries prioritized for H-1B visa selection (2024–2025)
• Administrative changes that tighten selection/entry and increase processing costs
• Increased oversight and additional requirements for H-1B renewals or transfers
• Changes to TPS (Temporary Protected Status)
• Extensions or terminations of TPS for certain countries, affecting the validity of EADs (Employment Authorization Documents)
• Updates on automatic EAD extensions in 2025
• Risk of losing work authorization if TPS designation expires or isn’t renewed
  Changes to H-2 Visas (Temporary / Seasonal Workers)
• H-2A: temporary agricultural workers
• H-2B: temporary non-agricultural workers
• Temporary increase in H-2B visa slots for FY2025: 64,716 additional H-2B visas added. Allocated for returning workers and nationals from specific countries (El Salvador, Guatemala, Honduras, Haiti, Colombia, Ecuador, Costa Rica).
• Temporary, subject to employer requests citing irreparable harm from labor shortages.
   

The uncertainty and complexity of the regulatory framework for millions of workers has prompted companies across the United States to explore strategies that protect operational continuity against potential changes. The recent shifts in migration and work authorization require careful attention. Missteps could jeopardize an employee’s ability to remain or return to the United States, put the company in legal noncompliance, or trigger new obligations in other countries.

The most common strategies we’ve seen — and in light of the likely departure of thousands of workers from the United States — are: hiring the worker as a US employee (US payroll) but allowing them to live in Latin America and work remotely, or employing them through an EOR (Employer of Record) in Latin America.

Hiring a worker on US payroll who lives abroad comes with tax complexities, potential permanent establishment risks for the company, and withholding/insurance obligations. This approach requires reviewing federal, state, and local regulations in the employee’s country of residence.

Alternatively, hiring through an EOR, which acts as the legal employer in the worker’s country and handles payroll, taxes, and local benefits, allows a US company to maintain operational control while gaining agility in cross-border payroll and tax management. This model mitigates, but does not eliminate, many cross-border employment risks.

While EOR-based strategies streamline operations for employees who need to leave the United States safely, legally, and in compliance with tax obligations, they do not resolve US immigration status. Hiring through an EOR in Latin America is a practical way to provide employment security (regular pay, local benefits, formal employment) for workers residing outside the United States, especially when the alternative is informal employment or off-the-books payment. However, it does not replace immigration solutions (work authorization/US residency) or eliminate compliance and tax risks for the hiring company. To maximize real worker security, companies should combine EOR employment, additional benefits (insurance, legal support), and robust compliance and audit policies.

In short, every case and worker is unique. A person’s social and employment history heavily influences their options and the strategy of the hiring company. Specialized guidance is essential to develop a solid, effective plan.

The fact that hundreds of companies are actively seeking strategies to safeguard their operations through employees from diverse national backgrounds, given today’s complex regulatory and global environment, highlights the tangible socioeconomic value that multicultural teams bring to businesses. These teams are not only a source of innovation and operational flexibility, but they also represent a critical asset in sustaining business continuity during periods of uncertainty.

Employees from diverse backgrounds often bring unique perspectives, specialized skills, and cultural insights that enhance problem-solving and decision-making within organizations. This, in turn, strengthens the company’s ability to adapt to regulatory changes, market fluctuations, and geopolitical risks. Companies that recognize and leverage the contributions of these employees are better positioned to maintain resilience, secure talent retention, and reinforce their competitive advantage.

Moreover, the commitment and motivation of these employees are essential factors in ensuring long-term organizational stability. Workers who feel valued and see opportunities to grow within a company, even while navigating complex legal or immigration-related challenges, are more likely to remain engaged, productive, and loyal. This mutual alignment between organizational strategy and employee stability creates a virtuous cycle: companies benefit from continuity and operational reliability, while employees gain security, professional growth, and recognition of their contributions.

In practice, this dynamic requires companies to implement thoughtful policies, compliance measures, and supportive infrastructure that acknowledge both business and human needs. From offering cross-border work arrangements to ensuring robust legal and immigration support, businesses can create an environment where multicultural teams thrive, even in volatile contexts.