Legal Curiosities: What Happened in U.S. Law in February?

Page 1

Supreme Court Rules: Employers Face "Double Jeopardy" of Back Pay and Punitive Damages for Pregnancy Discrimination

The Supreme Court recently issued a landmark ruling, confirming that the Women’s Advocate Office (OPM) has the authority to initiate administrative lawsuits against employers who violate laws protecting pregnancy and childbirth. The court clarified that OPM is not limited to administrative penalties but can also file lawsuits on behalf of victims in local courts to seek back pay and punitive damages. This means that even if an employer reaches a settlement during an OPM administrative investigation, they could still face separate civil lawsuits. The case originated from a female employee who filed a complaint with OPM after being dismissed due to pregnancy. The employer claimed they had already paid OPM's administrative fine and that the matter was resolved. However, the Supreme Court rejected this defense, stating that OPM's administrative penalties do not replace or eliminate the employer's civil liability to the victim, nor do they waive Puerto Rico Supreme Court precedents on the matter.

H-2B Supplement: First Round of Cap Reached, Refugee Admissions Initiated

On February 13, USCIS announced that the first round of the FY 2026 supplemental H-2B visa cap—allocating 18,490 visas for positions starting between January 1 and May 31, 2026—has been reached. The application deadline was February 6. For the remaining supplemental allocation, USCIS has received applications for positions starting between April 1 and May 14. This includes a specific allocation for nationals of El Salvador, Guatemala, Honduras, Colombia, Ecuador, and Haiti, in addition to the standard 66,000 H-2B annual cap. USCIS will continue to accept applications for the separate allocation reserved for returning workers, which provides 18,490 visas for positions starting between May 1 and September 30. Applications will close once that cap is reached.

Government Discontinues Free Tax Filing System! Tax Season Faces Downturn

As the tax filing deadline approaches, the IRS announced that the "IRS Direct File" system, which was trialed in 2024, will not be available this year. The system originally allowed taxpayers to file their returns directly with the federal government online. Supporters argued it was streamlined, cost-effective, and safe, and had pushed for it to expand nationwide. The IRS noted that while Direct File is suspended, eligible taxpayers can still use IRS Free File. This program, operated through partnerships with private tax software companies, allows individuals with an adjusted gross income (AGI) of $89,000 or less to select free filing software. Additionally, revenue departments remind taxpayers that free online options like the Free File Fillable Forms are still available, though they require manual calculation. Furthermore, the Volunteer Income Tax Assistance (VITA) program continues to offer free tax prep services to individuals making $69,000 or less, persons with disabilities, and limited-English-speaking taxpayers. Elderly taxpayers can also utilize the Tax Counseling for the Elderly (TCE) program. Taxpayers are reminded to carefully review the eligibility criteria and terms of use for these free services, as some private software providers may charge fees for state tax filings or additional services.

Will Re-Entry Permit Applications Be Made Online? Operations Shift Toward Tightening

Recently, discussions within the immigration community regarding whether "Green Card holders can apply for Re-Entry Permits while in the U.S." have drawn significant attention. This stems from a green card holder's plan to leave the U.S. for an extended period due to personal reasons, requiring them to apply for a travel document. Historically, a standard practice was to submit the Form I-131 application while in the U.S. and leave after biometrics were collected, or have the approved permit sent to an overseas consulate for pickup. However, recent cases show that processing times for Re-Entry Permits have lengthened significantly. Many applicants face long waits for biometrics appointments, making it difficult to coordinate travel plans. According to USCIS data, the current processing time for Form I-131 Re-Entry Permits is approximately 16 months. Under these circumstances, if an applicant leaves the U.S. before biometrics are captured or if the application is rejected, it could severely impact their green card status. Therefore, how to properly handle travel timing is a critical issue for Green Card holders planning long-term travel.

Immigration Bureau Set to Raise Filing Fees, Set for February 1 Effective Date

USCIS announced that a new fee schedule for immigration applications will take effect on February 1, 2026. This adjustment marks the first comprehensive fee increase since 2024. According to the published final rule, the filing fee for Form I-140 and various Form I-129 employment-based petitions will rise from $2,805 to $2,965. The premium processing fee for H-2B and R-1 petitions will increase from $1,685 to $1,780. The premium processing fee for Form I-539 will adjust from $1,685 to $1,780, and Form I-765 premium processing will rise from $1,685 to $1,780. USCIS stated that this adjustment is necessary to cover operational costs and reduce application backlogs. The last fee adjustment occurred in 2024, and applicants are advised to pay close attention to the new fee requirements based on their post-February 1 filing dates.

Page 2

Visa Scheduling "Major Shift"! Errors in Filling Forms Draw Heavy Penalties

Recently, many applicants have noted a significant tightening of the DS-160 review process within the visa scheduling system. Applicants must complete their DS-160 form and submit it to obtain a "Confirmation Page" (AA Number) before booking an interview slot. The system validation process has become stricter, requiring that the DS-160 number entered into the appointment system matches the actual submitted form. Otherwise, applicants risk having their appointments canceled. To address this, some applicants have tried to bypass the system by using a "placeholder" or incomplete DS-160 number to secure a slot, planning to update it later with their final DS-160 confirmation number. However, current system updates show that the DS-160 confirmation number cannot be modified once the appointment is booked. Even if an appointment is successfully made, discrepancies in names, dates of birth, or barcode numbers during the document check stage could lead to a refusal of entry for the interview. Applicants must fill out the form carefully, confirm all details are correct, and double-check that the "Sign and Submit" step is fully completed to avoid appointment cancellations or entry denials.

H-1B Wage Adjustments Looming? New Rule Details Set for Publication

The Department of Labor (DOL) is preparing to publish a new proposed rule regarding H-1B non-immigrant visas and PERM labor certification wage levels. It has passed review by the Office of Management and Budget (OMB) and is entering the public comment phase. Although specific details have not yet been released, the rule is expected to adjust the prevailing wage calculation methodology for H-1B applications, potentially raising the minimum salary requirements across all wage levels. This adjustment aims to ensure that H-1B workers do not undercut local wages, but it will also increase the cost of hiring foreign talent for U.S. employers. Concurrently, the DOL will update the prevailing wage request processing system to align with the new standards. Notably, back in 2021, the Trump administration pushed for a similar wage-raising rule, which faced immediate legal challenges and was eventually blocked by federal courts. It remains to be seen whether this current attempt will face similar legal hurdles. According to the timeline, the proposal will be open to public comments for 30 to 60 days post-publication before a final rule is drafted. Currently, this policy is generating widespread concern among tech, engineering, and high-tech industries heavily reliant on H-1B talent.

EAD "Frozen for a Year"? Work Permit Extensions Expected to Extend to 365 Days, Drawing Market Attention

USCIS recently released a proposal aimed at easing the employment anxiety of green card applicants: extending the automatic extension period for Employment Authorization Documents (EAD) to up to 365 days under certain conditions. Currently, when green card applicants file an EAD renewal, they receive a 180-day automatic extension if their current card expires. However, due to severe USCIS backlogs, the average processing time for EAD renewals often exceeds 180 days. Many applicants risk losing their legal work authorization while waiting for approval. To prevent these employment disruptions, the proposed rule would extend this automatic buffer to a full year. Once implemented, it will significantly alleviate pressure on applicants and employers alike, reducing the risk of forced work stoppages due to processing delays. The rule is currently in the proposal stage and has not yet taken effect. The public comment period is scheduled to run until April 24, 2026, after which final implementation details will be finalized.

B-1 Visa Clarification: "Business" vs. "Employment" Boundaries Clearly Defined

USCIS issued a new policy clarification regarding the permissible activities for B-1 business visitors, drawing a clearer boundary between temporary business activities and local employment. The new guidance reaffirms a core principle: the B-1 visa is suitable for commercial activities but strictly prohibits local employment. For B-1 visa holders entering via the Visa Waiver Program (ESTA), all activities must remain within the scope of business travel. Acceptable activities include attending commercial meetings, contract negotiations, consulting, attending conferences, or conducting short-term independent market research. However, if an alien's activities involve day-to-day operations or replace a position that would otherwise be filled by a local worker, it constitutes "employment" and requires an appropriate work visa. In light of stricter border scrutiny, the policy advises companies to carefully review the travel purpose and visa types of foreign visitors to ensure full compliance and avoid compliance risks at the port of entry.

Low-Cost Tax Filing Era Opens: Chain Stores Can Save Millions of Dollars

Under the new "Small Business Income" tax incentives, chain stores and retail businesses in multiple states can leverage recent tax cuts. According to the 2025–2026 tax regulations, corporate income tax for qualified small and medium chain retail enterprises will be significantly reduced, with deductions up to 15%. Concurrently, tax code amendments (specifically Section 45) will grant FICA tax credits to businesses in the food and beverage industry based on employee tips, applicable to various business structures. Retail and restaurant owners are advised to consult certified public accountants to optimize corporate tax planning.

Page 3

Federal Judge Temporarily Halts USDA Proposal, Saving SNAP Funds Over Detention Disputes

A federal judge has stepped in to temporarily block a controversial rule proposed by the U.S. Department of Agriculture (USDA) regarding the Supplemental Nutrition Assistance Program (SNAP), originally scheduled to take effect on July 17, 2026. The ruling stems from a lawsuit challenging the expansion of the New Jersey Family Leave Act (NJFLA) guidelines. Concurrently, the State Department of Labor (DOL) and the Family Leave Insurance (FLI) program announced expanded coverage. This adjustment lowers the employer threshold for compliance from 30 employees to 15. The New Jersey Supreme Court recently ruled that even small business owners must allow employees to take up to 12 weeks of unpaid, job-protected family leave. Furthermore, NJFLA eligibility criteria have been significantly relaxed: workers only need to be employed for 3 consecutive months to qualify, down from the previous 12-month and 1,000-hour requirement. For employers who violate TDI and FLI regulations, penalties will now accumulate on a weekly basis rather than per incident, heavily inflating non-compliance costs.

Administration Strengthens Information Sharing; Free Travel Visas Face Scrutiny or Revocation

On February 6, the U.S. administration signed Executive Order 14585, requiring U.S. Customs and Border Protection (CBP) to establish a comprehensive history-sharing mechanism with foreign government immigration departments. The mechanism will track visa applications and cross-border travel histories of visa-exempt travelers. Under this order, the U.S. government will verify applicant eligibility based on reciprocity and the VWP (Visa Waiver Program) framework, aiming to "prevent illegal immigration and counter-terrorism." Signed agreements require participating nations to share traveler entry/exit logs, criminal records, and biometric data. Government departments state that while this policy targets security risks, it will expand the scale of cross-country data exchanges and make background checks much more stringent. Moving forward, individuals with past criminal penalties or immigration violations face a high probability of being denied entry or having their automated travel authorizations revoked. Individuals are strongly advised to check their personal records before planning travel and pay close attention to the implementation details of these new policies.

Updates to U.S. Visa Scheduling System Spark Debate; True Intent of Changes Awaits Clarification

On February 10, the U.S. Visa Scheduling Website (US Travel Docs) rolled out an important system update. The notification stated that starting from January 21, all U.S. immigrant visa applications processed through the Guangzhou Consulate will be unified under a new system platform. The update aims to simplify the scheduling process, improve efficiency, and enhance user experience. However, since the system transition, many applicants have encountered technical issues, such as an inability to check scheduling statuses or log into their accounts. Regarding these issues, the American Immigration Lawyers Association (AILA) and U.S. Consular Services stated they are actively troubleshooting. The website advisory notes that during the transition, technical glitches may cause temporary data synchronization delays across certain accounts. Applicants are urged to carefully review information provided on the official website and avoid submitting repetitive requests, as unverified data transfers may result in processing errors.

11 Indicted in Marriage Fraud and Extortion Ring; Schemes Involved Cross-State Shammed Marriages

On February 10, federal prosecutors announced a sweeping indictment against 11 individuals involved in a massive marriage fraud and extortion ring in Louisiana. The group allegedly masterminded sham marriages between U.S. citizens and foreign nationals (primarily from Asia) to bypass immigration laws. According to court documents, the criminal syndicate charged foreign nationals up to $70,000 to arrange fake marriages, coach them on immigration interviews, and forge residency documents. In addition to immigration fraud, several lead defendants face charges of extortion and witness tampering, as they allegedly threatened to report clients to ICE if they failed to pay additional "hush money." The investigation remains ongoing, and immigration authorities emphasize that they will continue to aggressively target fraudulent schemes that undermine the integrity of the legal immigration system.

Page 4

1.4 Million Case Backlog! Bureau Proposes Eliminating "Automatic Work Permit Extensions"?

On February 20, the Department of Homeland Security (DHS) released a proposal intended to address the compounding backlog of employment authorization document (EAD) applications and alleviate operational burdens. However, part of the strategy involves modifying current automatic extension rules. DHS data reveals that there are currently over 1.4 million pending EAD applications. The agency claims that the existing 540-day automatic extension rule, while protective of applicants, reduces incentive to finalize cases and strains administrative resources. Under the new proposal, the automatic extension buffer for certain categories could be scaled back to 180 days, or require a separate fee-based expedited review if processing exceeds standard timelines. Following its publication in the Federal Register, the rule will undergo a 60-day public comment period before final review. If implemented, it will fundamentally reshape the employment timeline for hundreds of thousands of green card and asylum applicants. Legal experts recommend that applicants closely monitor the policy's progress and submit renewal applications as early as legally permissible.

Professional Services Directory