Employment Law & Compliance Highlights from the Law Offices of Paul P. Cheng
– FEDERAL –
DHS Finalizes Major Changes to H-1B Visa Selection Process
The U.S. Department of Homeland Security (DHS) has announced a significant regulatory change to the H-1B visa program that will impact employers and foreign professionals nationwide. Under a final rule issued by DHS, U.S. Citizenship and Immigration Services (USCIS) will now prioritize H-1B visa selection based on wage levels, effectively favoring highly skilled and higher-paid foreign workers.
The new rule revises the H-1B registration and selection process by assigning each registrant a wage level and applying a weighted, wage-based lottery system. DHS has stated that the change is intended to better align the H-1B program with its original purpose of attracting top global talent while reducing abuse and wage suppression.
The final rule was published in the Federal Register on December 29, 2025, and will take effect on February 27, 2026, ahead of the FY 2027 H-1B registration season. Employers planning to sponsor H-1B workers should carefully evaluate compensation structures and filing strategies in light of these changes.
If you have questions about how the new H-1B selection rules may affect your business or immigration plans, our office is available to provide strategic guidance and compliance support.
The Law Offices of Paul P. Cheng continue to monitor federal employment law developments and advise employers and employees on compliance, risk management, and enforcement issues arising under Title VII and related statutes.
– CALIFORNIA –
California Civil Rights Department Releases Preliminary 2025 Pay Data Reporting Templates
The California Civil Rights Department (CRD) has released preliminary pay data reporting templates and accompanying Frequently Asked Questions (FAQs) to assist employers in preparing for the upcoming Reporting Year 2025 filing cycle. The official filing period is expected to open in early February 2026 and run through May 13, 2026.
These preliminary templates are a streamlined version of the final reporting forms and are intended to help employers familiarize themselves with the anticipated data structure and required fields. While not yet final, the templates offer valuable insight into upcoming reporting expectations and compliance planning.
Notably, the CRD’s companion FAQ highlights three newly proposed data categories, including:
- Employee exemption status
- Employment type
- Total weeks worked
The CRD emphasizes that these templates are for planning and preparation purposes only and should not be submitted as official filings. The final versions may be revised prior to the start of the filing window.
Employers subject to California’s pay data reporting requirements are encouraged to begin internal data reviews and coordinate with legal counsel to ensure timely and accurate compliance.
For guidance on California pay data reporting obligations or assistance preparing for the 2025 filing cycle, the Law Offices of Paul Cheng is available to help.
At the Law Offices of Paul P. Cheng & Associates, we counsel businesses on California labor compliance and defense. If you have questions about how these changes affect your operations, contact our office to ensure your policies are updated before January 2026.
These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.
