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

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New Jersey Expands Paid and Family Leave Protections

New Jersey will officially implement several major amendments to its family and paid leave systems on July 17, 2026. Under the new regulations, the scope of the New Jersey Family Leave Act (NJFLA) will be significantly expanded, while rules relating to the state’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs will also be adjusted.

The new law lowers the employer coverage threshold under the NJFLA from 30 employees to 15 employees. This means that more small and medium-sized businesses will, for the first time, be subject to the law and will be required to provide eligible employees with up to 12 weeks of unpaid, job-protected family leave.

At the same time, the eligibility threshold for employees to take NJFLA leave will be greatly reduced. Going forward, employees will only need to have worked for their employer for 3 months and accumulated 250 hours of work to qualify. Previously, the requirement was 12 months and 1,000 hours.

The new law also revises TDI and FLI benefits, clarifying that employees may choose to use either state paid benefits or accrued sick leave, but may not stack both at the same time. The provisions also address job restoration after leave, although the specific scope of application remains subject to further clarification.

USCIS Officially Announces H-1B Lottery Registration Period for the New Fiscal Year

On January 30, USCIS officially announced that the initial electronic registration period for the FY 2027 H-1B cap lottery will open at noon Eastern Time on March 4 and remain open until noon Eastern Time on March 19.

During this period, employers and their representatives seeking to submit H-1B cap petitions must complete registration for each beneficiary through a USCIS online account and pay a registration fee of $215 per beneficiary. Only employers whose registrations are selected in the lottery will be eligible to file a full H-1B petition.

Notably, FY 2027 will be the first year in which the weighted lottery system is fully implemented. According to the final rule issued by the Department of Homeland Security, if the number of registrations exceeds the annual cap, USCIS will prioritize allocation of H-1B numbers to highly skilled and higher-paid beneficiaries in order to better protect the U.S. labor market.

In addition, the announcement states that some employers may be required to pay an additional $100,000 fee as a condition before filing a formal H-1B petition. USCIS reminds employers and applicants to plan ahead and closely monitor changes in policy details.

$1,000 for Every Child at Birth? Accounts Could Grow to as Much as $300,000 by Age 18

President Trump announced the launch of the “Trump Account” program. Under the “One Big Beautiful Bill,” all children under the age of 18 who have a Social Security number may open a dedicated investment account and receive a one-time $1,000 government startup contribution after registration for long-term compound investment.

The program allows parents to contribute up to $5,000 per year to the account. Based on the historical average return of the S&P 500 Index, if families consistently make the maximum annual contribution, the account could potentially grow to approximately $300,000 by the time the child turns 18. Even if the account relies only on the government’s initial contribution, it could still grow to approximately $5,800 after 18 years.

In addition, technology entrepreneur Michael Dell and his wife have pledged to donate $6.25 billion to provide an additional $250 subsidy for eligible families, with a focus on children from low- and middle-income communities.

Families may register for the account by submitting IRS Form 4547 with their 2025 tax return. Funds are expected to be distributed in the summer of 2026. The program is viewed as one of the largest child asset-building initiatives in the United States in recent years, aiming to help the next generation establish a financial foundation earlier in life.

Minnesota Controversy: Video Released in Federal Law Enforcement Shooting Case

On January 24, a fatal shooting involving federal law enforcement officers occurred in the Whittier neighborhood of south Minneapolis. Alex Pretti, a 37-year-old U.S. citizen, was shot and killed at the scene.

At the time, U.S. Border Patrol was carrying out an immigration enforcement operation known as “Operation Metro Surge.” The Department of Homeland Security stated that Pretti was armed and posed a threat to officers, and that officers opened fire because their lives were in danger.

However, video from the scene and media analysis show that an agent had already removed a firearm from Pretti before the shooting occurred, and the footage does not show him waving a gun. This has raised public questions about the claim that the shooting was defensive.

Minneapolis police confirmed that Pretti had a legal permit to carry a firearm. It remains unclear which law enforcement officer fired first. The incident triggered large-scale local protests. The Governor of Minnesota has called for an independent investigation and deployed the National Guard to maintain order. The mayor has called for a suspension of federal immigration enforcement operations in the city.

A federal judge has ordered all relevant evidence to be preserved, and body-camera footage will be a key part of the investigation. The case remains under further investigation.

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Senate Rejects Funding Proposal; Government May Face Another Shutdown

On January 29, the U.S. Senate failed to pass a procedural motion to advance a government funding proposal. The vote ended 45 in favor and 55 against. If the proposal is not passed by 11:59 p.m. on January 30, the federal government will once again face the risk of a shutdown.

Republicans stated that the funding proposal was intended to keep the government running and included funding arrangements for six departments. They hoped to move the package forward as a whole to avoid a fiscal interruption.

After the vote, Senate Majority Leader John Thune filed a motion to reconsider, leaving room for further negotiations.

Democrats stated that they had largely reached agreement on five of the appropriations measures, but wanted to address Department of Homeland Security funding separately until further progress was made on related reforms and accountability mechanisms. Senate Appropriations Committee Vice Chair Patty Murray stated that Democrats would not support a combined package including that department until those issues were clarified.

The two sides are still communicating about a possible split package, but no final agreement has been reached.

USCIS Raises Fees Again: Premium Processing Fees to Increase Across the Board Starting in 2026

On January 9, USCIS issued a final rule notice announcing that, beginning March 1, 2026, it will increase premium processing fees for multiple immigration and nonimmigration applications to reflect inflation adjustments from 2023 to 2025. This is another fee increase following the February 2024 adjustment.

Among the changes, the premium processing fee for I-140 employment-based immigrant petitions will increase from $2,805 to $2,965. The fee for I-129 work visa petitions, including H-1B and R-1 petitions, will increase from $1,685 to $1,780. The premium processing fee for F-1 student OPT I-765 applications will also rise to $1,780.

The new fees will apply to applications mailed on or after March 1, 2026. USCIS reminds employers and applicants to include the new fee schedule in their immigration budget planning in advance to avoid delays caused by insufficient payment.

Puerto Rico Supreme Court Rules Employers May Face Dual Liability for Gender and Pregnancy Discrimination

The Puerto Rico Supreme Court ruled that the Women’s Advocate Office, known as OPM, has the authority to investigate and impose fines on public and private employers for violations of women’s rights, including cases involving gender and pregnancy discrimination in the workplace.

The court also clarified that OPM may not only impose penalties on employers through administrative proceedings, but may also file lawsuits in court on behalf of affected employees. This means that employers may face both administrative fines and civil remedies ordered by a court for the same alleged discriminatory conduct.

The case arose from a female temporary employee who alleged that, after informing her employer that she was pregnant, she was required to submit a medical certificate before returning to work but was ultimately not rehired.

OPM then filed a gender and pregnancy discrimination lawsuit on behalf of the employee and, almost simultaneously, initiated an administrative proceeding seeking to impose up to $60,000 in fines on the relevant company. The employer argued that OPM lacked authority to handle employment discrimination matters, but that argument was ultimately rejected by the Puerto Rico Supreme Court.

Can Foreign Nationals Legally Establish a Company in Washington State? An Interpretation Based on Washington State Corporate Law

As cross-border investment and global entrepreneurship become increasingly common, more non-U.S. citizens, non-permanent residents, and even foreign individuals holding only B-1/B-2 business or tourist visas are planning to establish companies in Washington State for purposes such as investment holdings, corporate control structures, future immigration or business planning, and cross-border tax planning.

However, there is a major misconception in practice: many people confuse “corporate ownership capacity” under corporate law with “work authorization” under immigration law.

The conclusion is that a person’s nationality or immigration status does not, by itself, restrict their ability to establish a company in Washington State, hold shares, become a member of an LLC, or serve as a director. The real limitations come from the registered agent system, tax identification procedures such as EIN applications, banking compliance such as KYC requirements, and immigration law restrictions on “working” or “operating” a business.

Corporate law capacity: under RCW 23B.02.010, one or more persons may act as incorporators of a corporation, and the law does not impose residency or citizenship restrictions. A foreign individual may directly sign the Articles of Incorporation.

Under RCW 23B.08.020, directors do not need to be residents of Washington State or shareholders of the corporation. Therefore, a foreign national may serve as a director or officer. Under RCW 23B.01.400(20), “person” means an individual or entity, which includes individuals, foreign entities, and overseas investors.

For LLCs, Washington law does not impose a residency requirement on members. A foreign national may own 100% of an LLC, serve as a manager, and serve as a member.

During formation, an LLC Certificate of Formation must include the company name, registered agent, registered office address, principal business address, and signer. Washington law requires a registered agent, and the registered agent must consent. For foreign nationals, the most common practical issues are lack of a Washington address, lack of someone willing to serve as registered agent, and inability to receive service of process. Common solutions include hiring a commercial registered agent or using professional corporate secretary services.

For EIN applications, the responsible party must be a natural person, and nominee arrangements are prohibited. If the applicant has no SSN or ITIN, the form may state “Foreign” or “N/A.” A foreign national may legally apply for an EIN without an SSN, but an attorney or agent may not replace the actual responsible party’s identity.

Texas Temporarily Halts H-1B Petitions by Public Institutions: A New Employment Chill?

On January 27, Texas Governor Greg Abbott signed an executive directive requiring all Texas state government agencies and public universities to immediately suspend the filing of new H-1B visa applications until the state legislature meets next year and reviews a related “regulatory framework.”

In an open letter to agency heads, Abbott stated that the measure was intended to give the state legislature time to develop “anti-abuse mechanisms” for the H-1B program. He stated that the current H-1B program has been “exploited by some bad employers” and has failed to sufficiently prioritize qualified local workers, instead relying too heavily on foreign skilled workers to fill positions that could have been held by Texas residents.

According to federal data, H-1B workers in Texas are primarily concentrated in private companies, but the public institutions most affected include several leading public universities and medical centers.

Notably, although Texas public K-12 schools also rely on H-1B teachers to address bilingual education teacher shortages, the ban does not apply to elementary and secondary school systems. The policy has already drawn widespread attention in higher education and medical research fields.

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Tax Season: One Big Beautiful Bill Takes Effect, Bringing Major Updates to Tax Rules

As tax season approaches, the IRS reminded taxpayers on January 7 to prepare early for their 2025 federal income tax filings. With the official implementation of the One Big Beautiful Bill, multiple tax rules have undergone major changes involving credits, deductions, and filing requirements.

The new law creates or strengthens several tax reduction measures, including tax exemptions for tip income, overtime income, car loan interest, and additional deductions for seniors. The IRS and Treasury Department are gradually issuing related guidance to clarify how the new rules apply in actual tax filings.

In terms of information reporting, the IRS confirmed that taxpayers who use online platforms or payment apps in 2025 to conduct transactions involving goods or services, and who receive more than $20,000 with more than 200 transactions during the year, will receive Form 1099-K in January 2026.

The IRS also emphasized that the basic principle of whether income is taxable has not changed, and all taxable income must still be reported accurately. The IRS reminds taxpayers to plan ahead, properly retain records, and timely adjust withholding to avoid refund delays and reduce tax risks.

Five-Year-Old Boy Taken During ICE Enforcement Operation, Raising Community Concerns

On January 20, during an immigration enforcement operation conducted by Immigration and Customs Enforcement, or ICE, in Columbia Heights, Minnesota, a five-year-old boy was temporarily taken by officers at the scene, raising concern in the local community.

The Department of Homeland Security stated that officers approached an adult male in a residential driveway who had been identified as unlawfully present in the United States. The man was with his son at the time. Officials stated that the enforcement target was the adult and that ICE did not target the child.

According to officials, the man left the scene as officers approached, and officers then cared for the child to ensure his safety. ICE stated that officers attempted to contact family members to retrieve the child but were unsuccessful. The child’s father requested to remain with the child, so the father and son are currently being housed together at a detention facility in San Antonio, Texas.

Columbia Heights Public Schools stated that community members took photos at the scene and said that adults had offered to care for the child but were not allowed to do so. The school district also stated that ICE had recently detained multiple minor students within the district, raising concern among parents.

U.S. officials stated that related enforcement actions will continue in accordance with the law.

Immigrant Visas Suddenly Suspended for 75 Countries: Public Charge Review Tightened to the Strictest Level in History

On January 14, the U.S. Department of State announced that, beginning January 21, 2026, it would indefinitely suspend the issuance of immigrant visas to citizens of 75 countries in order to reassess the “public charge” review mechanism. This policy will affect a large number of applicants waiting for immigrant visas.

According to official guidance, applicants from affected countries may still submit applications and attend interviews, but during the suspension period, they will not receive immigrant visas even if they pass their interviews. Dual nationals who hold a passport from a country not included on the suspension list may be unaffected.

The suspension includes 75 countries, including Afghanistan, Iran, Syria, Haiti, Russia, Nigeria, Pakistan, and Ethiopia. Some of these countries had already been subject to travel restrictions, but this policy will further worsen immigrant visa backlogs.

The core reason for the policy adjustment is the significant tightening of public charge review standards. The Department of State has instructed consular officers to focus on applicants’ health conditions, family circumstances, educational background, and financial capacity when determining whether they may rely on public benefits in the future.

The duration of the suspension has not yet been announced. Applicants should closely monitor further official updates.

No More SSN Together with EAD? Major Change to Form I-765

USCIS has begun using a new version of Form I-765, Application for Employment Authorization, officially removing the option to apply for a Social Security number, or SSN, at the same time as applying for an EAD. This means that the long-standing mechanism allowing foreign nationals to apply for an EAD and SSN together has been fully ended.

Since 2017, applicants who filed Form I-765 could usually receive an SSN card automatically after approval, without needing to visit the Social Security Administration separately. However, according to disclosed information, the Social Security Administration had actually stopped automatically issuing SSNs based on I-765 applications in March 2025, and the new form officially confirms this change.

After the new rule takes effect, applicants who need to apply for or replace an SSN must submit a separate application to the Social Security Administration and appear in person. This adjustment may affect employment onboarding, payroll, tax filing, bank account opening, and driver’s license applications. Applicants and employers should plan their timelines in advance.

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Conclusion

Based on the current provisions of Washington State corporate law, the conclusion is clear: at the corporate law level, Washington adopts a fully open access regime for foreign nationals. Foreign nationals may legally establish a corporation or LLC in Washington State, hold equity interests, and serve as directors. Foreign status itself does not create any legal barrier to company formation or ownership eligibility.

In practice, the restrictions do not come from the question of whether a person is qualified to form a company. Rather, they mainly arise from the subsequent compliance framework, including registered agent arrangements, tax identity determinations, banking compliance reviews, and work authorization issues under immigration law.

It is especially important to emphasize that forming a company does not mean a person may legally operate or work in the United States. Even if corporate law allows a foreign national to hold shares, establish a company, or serve as a director, actual participation in day-to-day management, receiving compensation, or engaging in business operations while in the United States may still trigger serious immigration consequences, including unauthorized employment, status violations, entry risks, or even visa revocation.

Therefore, related business activities usually need to be supported by an appropriate work or investment-based immigration status, such as E-2, L-1, H-1B, O-1, or another suitable category. For specific planning, it is recommended that you consult this firm’s immigration legal services team.

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