Day 3 of Government Shutdown: What Employers Should Know

October 3, 2025 | Insights



By Kelly D. Cobb

The current U.S. immigration shutdown has created significant uncertainty for employers, HR teams, and legal departments. With key government functions suspended or delayed, companies face disruptions in hiring, onboarding, and compliance processes—especially those relying on foreign talent.

This environment demands vigilance and proactive planning. If your business is affected or you’re unsure how to proceed, it’s essential to consult a qualified business immigration attorney to navigate the risks and protect your workforce strategy.

  1. Labor Certifications Are Frozen

The Department of Labor (DOL) has suspended all immigration-related functions, including Labor Condition Applications (LCAs), PERM filings, and Prevailing Wage Determinations, halting progress on H-1B, H-2B, H-2A, and employment-based green cards.

  1. E-Verify Is Unavailable

The E-Verify system is offline. Employers must still complete Form I-9s within three business days and document good-faith compliance. USCIS has suspended the “three-day rule” for E-Verify case creation.

  1. USCIS Is Operational but Delayed

USCIS continues processing most applications because it is fee-funded. However, delays are expected due to dependencies on other agencies like the DOL.

  1. Visa Applications Made Through U.S. Consulates Abroad

Consular services are fee-funded and generally remain open. However, if fee reserves run low, some posts may scale back to emergency and diplomatic cases only.

  1. Border Processing Is Slower

CBP continues essential operations, including TN visa adjudications at ports of entry. However, travelers should expect longer lines and possible secondary inspections due to reduced staffing.

  1. Immigration Courts Are Partially Operational

Detained docket cases continue, but non-detained cases may be postponed or inconsistently handled, contributing to growing backlogs.

  1. Worksite Enforcement Is Increasing

ICE enforcement—including I-9 audits and raids—is ramping up under expanded funding from the One Big Beautiful Bill Act. Employers should expect more scrutiny.

  1. Legal Exposure Is Heightened

Employers remain liable for I-9 violations and unauthorized employment. Shutdown-related delays do not excuse noncompliance, and penalties can include fines, criminal charges, and debarment.

  1. HR and Legal Teams Must Be Proactive

HR leaders should:

  • Prepare LCA postings now for immediate filing when systems return.
  • Use alternate I-9 verification methods.
  • Communicate clearly with foreign national employees about travel and visa risks.
  1. Strategic Workforce Planning Is Critical

Hiring delays, visa uncertainty, and paused certifications can disrupt operations. Industries reliant on foreign talent—like tech, healthcare, and manufacturing—must reassess timelines and contingency plans.

If your company sponsors foreign workers or is navigating immigration-related hiring, now is the time to:

  • Review your current immigration cases.
  • Communicate clearly with impacted employees.
  • Seek legal counsel to ensure compliance and minimize risk.

The opinions expressed are those of the author and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For assistance, please contact an attorney in Jackson Walker’s Business Immigration & Compliance practice.


Meet JW

Founded in 1887, Jackson Walker has played a vital role in the growth and development of Texas business. With over 500 attorneys, we are the largest firm in Texas. The Firm represents Fortune 500 companies, multinational corporations, major financial institutions, insurance companies, and a wide range of public companies and private businesses around the globe.

Our Business Immigration & Compliance practice provides integrated legal solutions to complex problems that permit our clients to achieve U.S. immigration objectives. The team’s experience ranges from foreign investors and business owners; international and domestic start-ups, small- to medium-size enterprises (SMEs) and public companies who employ individuals that need U.S. visa options to grow and expand their business; families who wish to live in the U.S. temporarily and/ permanently; and persons who wish to acquire U.S. citizenship.