🔒Federal rule changes, uncertainty complicate hiring foreign-born workers in CT

The many Connecticut companies that rely on foreign-born workers have been navigating a legal minefield for much of 2025. The landscape of immigration-related work authorizations — never simple to begin with — has been changing almost week-to-week as the Trump administration excludes or restricts more classes of employees. The potential problems extend across many industries and a wide range of skill levels, from highly skilled employees on H-1B visas to workers on temporary protected status from countries including Haiti, Venezuela and Ukraine. “Employers are left with a great deal of uncertainty,” said Nina Pelc-Faszcza, an attorney at law firm Shipman & Goodwin who focuses on business immigration. She points to confusing guidance tied to a new $100,000 fee on H-1B visas imposed under a September presidential proclamation. An H-1B allows employers to hire skilled foreign workers in specialty occupations — jobs requiring a bachelor’s degree or higher in fields where U.S. labor is in short supply — and is awarded through a lottery system. “Obviously the vast majority, if not almost all employers, are not going to pay $100,000 per H-1B worker to get them status,” Pelc-Faszcza said. The implications for Connecticut employers are far-reaching. Almost 1,500 companies in the state applied for H-1B visas in fiscal year 2024, and almost 300 of those indicated they were heavily dependent on such work authorizations. According to U.S. Citizenship and Immigration Services (USCIS) data, Yale University received more than 200 H-1B approvals in the most recent fiscal year, making it the state’s largest user of the program. Other major sponsors include Quest Global, SS&C Technologies, Synchrony Bank and The Hartford, each with roughly 70 to 80 approvals. Most of Connecticut’s H-1B petitions seek software developers, data analysts, systems engineers and other computer-science roles. But civil engineering is also deeply affected. AI Engineers in Middletown employs about 350 people in the U.S., including roughly 25 on H-1B visas. Chief of Staff Tariq Islam said the initial announcement in September of the new $100,000 fee created widespread anxiety, with some employees who were overseas visiting family unsure whether they’d be able to return. The uncertainty eased somewhat the following week, he said, after industry groups pressed the administration and officials indicated the fee would not take effect until more detailed regulations were developed. Companies had to wait until the end of October before USCIS issued guidance on how the fee would be implemented, but even that left many questions unanswered, particularly around the so-called national interest exception. Under the proclamation, the Homeland Security secretary has discretion to waive the fee if a hire is deemed in the national interest and does not pose a threat to national security or welfare. Pelc-Faszcza said attorneys were given an email address to submit exception requests, but so far the system does not appear to be working. “There have been attorneys who have had national interest exception requests outstanding in that email inbox for over a month now with no correspondence from the government,” she said. She said many employers now include clauses in offer letters to foreign-born candidates saying they can withdraw the job if the government imposes the H-1B fee.

Impacted sectors

There was at least one positive development in the October guidance, said Dana Bucin, a partner in the immigration practice group at law firm Harris Beach Murtha. The $100,000 fee will not apply, as most attorneys interpret it, to prospective hires already in the United States on another legal status — such as a student visa — who seek to enter the H-1B lottery. Bucin said that clarification matters for Connecticut employers. “They’ve always been recruiting from the pool of international students who hold Connecticut degrees, so when we heard that those people are not affected when they go for the lottery, we were relaxing a little bit,” she said. That’s true for AI Engineers, which frequently recruits overseas students from U.S. master’s programs. But the company has also had a talent pipeline from its office in Pakistan, and Islam says that’s now on hiatus. Islam said he expects many companies to back away from using the H-1B program, which he believes will worsen an already tight labor market in fields like civil engineering. He said the shortage is especially pronounced in mid-level roles typically filled by H-1B holders. “Those people come with so much experience, they end up being the mentors to a lot of those entry-level kids at the undergrad level,” he said. The changes to the system seemingly are not over. In early December, President Donald Trump announced plans to increase H-1B applicant vetting and shorten work-permit duration for asylum seekers from five years to 18 months, raising new concerns over renewals and processing delays. Employers are also grappling with shifts to the temporary protected status (TPS) system. TPS is a humanitarian designation for people fleeing natural disasters or conflict. When Trump became president in January, 19 nationalities were eligible. The administration has since ended the status for seven countries, with more scheduled to end in 2026. TPS holders can receive an employment authorization document. While it’s difficult to pinpoint precise numbers, Connecticut may have had as many as 9,460 TPS holders as of March 2025. Haitians are routinely cited as one of the largest TPS groups in the state, and temporary protected status for them will end Feb. 3, 2026. Once TPS ends, that person becomes undocumented, and it’s illegal to employ them. They also risk detention and deportation. In Connecticut, that could significantly affect sectors such as health care and education. Bucin said employers want to stay compliant by avoiding unauthorized hires while still trying to help affected workers. Options for workers include seeking asylum, pursuing employer-sponsored green cards, or obtaining sponsorship from family members, particularly those in the U.S. military. “If you’re eligible for something, file and file (as soon as possible),” is Bucin’s advice. She acknowledged that many people may now be afraid to interact with federal immigration authorities, given stories about people being detained when they show up for hearings.

‘Arbitrary and capricious’

A big change for Bucin this year has been the number of in-person interactions she’s had with federal officials. “It used to be paper-only interactions before 2025,” she said. “We’re back to in-person interviews for all green cards.” That increase in red tape is likely to be exacerbated by another recent change. In October, DHS said it would no longer automatically extend employment authorization documents for people filing renewal applications in most categories. Previously, if a work authorization was expiring but a renewal application had been filed on time, employment eligibility was automatically extended. Now, once authorization expires, the person can no longer work, even with a valid application pending. The change is so concerning that numerous attorneys general, including Connecticut’s William Tong, have written to DHS Secretary Kristi Noem, calling the new rule “arbitrary and capricious.” Pelc-Faszcza, of Shipman & Goodwin, said that as 2025 has progressed and work-authorization rules have grown increasingly complicated and uncertain, she’s seeing more employers hesitate to even pursue immigrant hires. “Employment-based green card applications through permanent labor certification have gone way down this year,” she said. “I’m almost getting the feeling like certain employers are more hesitant than ever to sponsor temporary workers.”