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• Federal Court Orders USCIS to Resume Work Permit Decisions
• Proposed Changes to Optional Practical Training (OPT) and F-1 Duration of Status (F-1 D/S) Could Reshape Hiring Landscape
• Acting ICE Director Todd Lyons to Step Down
• DOL Proposes Major Increases to Prevailing Wage Requirements

Federal Court Orders USCIS to Resume Work Permit Decisions

A federal judge in California has ordered U.S. Citizenship and Immigration Services (USCIS) to resume adjudicating work permit applications that had been placed on hold, including those filed by individuals from Iran and Sudan. The ruling challenges a USCIS policy that paused decisions on immigration benefit applications for nationals of designated high-risk countries.

The court found that USCIS likely has a legal obligation to adjudicate employment authorization applications within a reasonable timeframe and cannot delay them indefinitely. While the agency cited enhanced vetting and national security concerns,  the court determined that these factors do not justtsify open-ended delays, particularly for individuals already  in the United States.

Under the decision, USCIS must adjudicate affected applications within 180 days of filing, resume processing without applying the hold policy, and issue formal decisions, including reasons for any denial. The case involved individuals with pending Form-I I-765 applications, including students, researchers, and professionals, many of whom have faced months-long delays.

The decision does not require approvals but mandates timely decisions.

Impact: The ruling reinforces USCIS’s obligation to process work authorization applications within a reasonable timeframe, even in the context of enhanced screening policies. Employers and foreign nationals should monitor developments closely, as the decision may influence broader adjudication practices and reduce prolonged processing delays.

Proposed Changes to Optional Practical Training (OPT) and F-1 Duration of Status (F-1 D/S) Could Reshape Hiring Landscape

U.S. Citizenship and Immigration Services (USCIS) is finalizing regulatory changes that would significantly alter F-1 student status and Optional Practical Training (OPT).  A key proposal would replace the current Duration of Status framework with fixed periods of admission, requiring students to actively maintain and extend their status.

This shift would introduce new compliance considerations for both students and employers. Under a fixed status model, individuals may need to file extensions  more frequently, increasing reliance on USCIS processing timelines and creating potential gaps in work authorization.

For employers, the proposed changes could increase responsibility for tracking status validity, add complexity to I-9 compliance, and heighten the risk of work interruptions due to delayed adjudications. The proposals may also affect the broader talent pipeline. OPT has traditionally served as a key pathway for international graduates to gain U.S. work experience and transition to longer-term visa options such as the H-1B... Limitations on OPT duration or eligibility could reduce access to this talent, particularly in STEM fields.

Additional considerations include increased scrutiny of STEM OPT, greater risk of status violations, and potential declines in international student enrollment.

Impact: These changes could introduce new compliance risks and disrupt a key pipeline of international talent, requiring employers to reassess hiring strategies, strengthen internal tracking systems, and plan earlier for alternative visa options to maintain workforce continuity.

Acting ICE Director Todd Lyons to Step Down

The Department of Homeland Security (DHS) has announced that Todd Lyons, the acting director of U.S. Immigration and Customs Enforcement (ICE), will leave his position at the end of May 2026. Lyons, who has led the agency since March 2025, is expected to transition to the private sector.

During his tenure, Lyons oversaw a significant expansion of immigration enforcement efforts, including increased arrests, hiring, and detention capacity aligned with broader federal policy priorities. ICE also played a central role in high-profile enforcement operations across major U.S. cities.

His leadership also coincided with heightened scrutiny and public debate over enforcement practices, including  congressional hearings and  legal challenges focused  tactics, authority, and operational transparency. Despite criticism, DHS leadership credited Lyons with strengthening enforcement efforts and advancing agency objectives.

DHS has not announced a successor. The transition comes amid ongoing congressional discussions on enforcement priorities, funding, and oversight.

Impact: Leadership changes at ICE may signal potential shifts in enforcement priorities or operational strategy. Employers and stakeholders should monitor developments closely.

DOL Proposes Major Increases to Prevailing Wage Requirements

The U.S. Department of Labor has issued a proposed rule that would significantly raise prevailing wage levels across several employment-based immigration programs, including H- 1B, H-1B1, E-3, and PERM. The rule is currently in the notice-and-comment stage, with implementation timing dependent on the rulemaking process.

If finalized, the rule would increase wage thresholds across all experience levels:

• Level I would rise from the 17th percentile to the 34th percentile;
• Level II from the 34th to the 52nd percentile;
• Level III from the 50th to the 70th percentile; and
• Level IV from the 67th to the 88th percentile.

These changes would significantly increase compensation requirements for sponsored employees.

For employers, the proposed rule introduces both cost and timing considerations, potentially affecting hiring, budgeting, and long-term workforce planning. Because the rule would apply prospectively, there may be a limited window to file Labor Condition Applications or initiate PERM cases under current wage levels.

Employers should consider taking proactive steps, including:

• Reviewing current sponsored employee populations to identify potential exposure;
• Modeling the financial impact of increased wage requirements; and
• Evaluating whether to accelerate filings within the next one to three years.

While a standard implementation window is often around 60 days after finalization, there is speculation that this rule could take effect as early as mid 2026.

Impact: If implemented, the rule would increase labor costs and  limit flexibility in hiring foreign talent, making early planning critical.