How Employers Can Navigate I-9 Compliance Amid Parole and TPS Terminations

As immigration policies continue to shift rapidly under the Trump Administration, U.S. employers face increasing uncertainty in meeting their I-9 and E-Verify obligations. Recent terminations of humanitarian parole programs (like CHNV for Cuban, Haitian, Nicaraguan, and Venezuelan nationals) and Temporary Protected Status (TPS) for multiple countries have disrupted the legal status of hundreds of thousands of workers, many of whom previously held valid employment authorization documents (EADs).

To aid employers, the Department of Homeland Security (DHS) launched a new E-Verify “Status Change Report”, alerting E-Verify users of revoked parole- or TPS-based EADs. However, employers not enrolled in E-Verify are not notified and may unknowingly continue to employ unauthorized workers—exposing themselves to liability under INA § 274A.

What Employers Need to Know

1. Actual vs. Constructive Knowledge:Employers can be held liable if they knowingly employ unauthorized workers—whether through direct admission (actual knowledge) or indirect indicators (constructive knowledge). For example, if an employer receives a government notification or recognizes inconsistencies in documents but fails to act, this may constitute constructive knowledge.

2. E-Verify vs. Non-E-Verify Employers:E-Verify employers now receive DHS alerts and access to status reports, arguably increasing their legal obligations. While these reports are not definitive proof of unauthorized status, DHS is likely to treat them as providing constructive knowledge—triggering a duty to review I-9s and reverify affected employees.

3. Reverification Protocols:Employers must establish and document internal protocols for reverifying work authorization. There is no set timeframe in the law, but DHS recommends “immediate” action, and employers should adopt a consistent, reasonable timeframe based on business operations. Employers should avoid discriminatory practices and ensure affected employees are given adequate opportunities to present valid documents.

4. Compliance Risks:Failure to properly respond to these developments can result in:

• I-9 penalties

• Unauthorized employment violations

• Discrimination claims

• Privacy breaches

• Creation of duplicate E-Verify cases

• Exposure to audits and enforcement actions

5. Best Practices:

• Regularly monitor E-Verify status reports and USCIS guidance

• Establish and document a consistent reverification policy

• Train HR personnel to recognize affected EAD categories (C11, A12, C19)

• Consult counsel before taking adverse action against employees

• Avoid assumptions based on national origin or prior documentation

Final Thoughts

The Administration’s ongoing efforts to restrict humanitarian-based work authorizations have created a volatile environment for both workers and employers. With limited guidance and inconsistent notifications, employers must be proactive and diligent in maintaining I-9 compliance while mitigating risk. Staying informed and building a thoughtful, well-documented compliance process is now more critical than ever.