If you employ foreign nationals in the United States, this week reshaped your risk map. A new federal proposal would tighten discretionary work authorization for whole categories of workers, from H-1B spouses to pending green-card applicants. Meanwhile, Oregon and Washington moved in the opposite direction, adding worker protections and sharper wage enforcement. Across the Pacific, the Philippines centralized its work-permit processing overnight. So the thread today is control: who decides whether your people can legally work, and how fast that decision can change. Here is what changed, who it hits, and what to do before the deadlines land.

US Proposes New Limits on Discretionary Work Authorization

On June 5, 2026, the Department of Homeland Security published a Notice of Proposed Rulemaking in the Federal Register. The rule would clarify and sharply limit several categories of discretionary work authorization. (Source: Federal Register) It is a proposal, not law yet. Still, the scope is wide enough that most US employers with global talent should read it now.

Who discretionary work authorization changes hit

The rule reaches further than parolees. Immigration firm Berry Appleman & Leiden flagged the breadth in its analysis. (Source: BAL) It touches discretionary Employment Authorization Documents for adjustment-of-status applicants (category C9) and asylum applicants (C8). It also covers spouses of H-1B workers on H-4 status (C26). It also covers deferred action recipients, including DACA, and people released on an order of supervision. For example, a tech company employing an H-4 spouse on an EAD now has a direct stake in this rule.

What the rule would require

The proposal adds friction at almost every step. First, all applicants would submit biometrics. Second, parole, deferred action, and order-of-supervision EADs would carry a one-year cap on validity, down from longer terms. Third, renewals for those categories would require proof that the applicant works for an E-Verify employer in good standing. In addition, an EAD would terminate automatically when its underlying basis ends, such as a revoked parole. Applicants would also need to show economic necessity and that they merit a favorable exercise of discretion. Because of these layers, processing times and denials are likely to rise.

What to do before August 4

The comment window is open. Written comments are due by August 4, 2026. (Source: Federal Register) So first, audit your workforce for anyone on a discretionary EAD, especially H-4 and pending-AOS staff. Then map their renewal dates against the proposed one-year cap. If you are weighing whether to sponsor or restructure a role, our guide to hiring foreign nationals in the United States walks through the options. For background on the term itself, see our work authorization glossary entry. Finally, file a comment if these categories sit on your payroll.

Why discretionary work authorization matters for distributed teams

Many startups treat an EAD as a settled fact. It is not, under this rule. A 60-person company with two H-4 engineers could face a lapse if a renewal slips past the new one-year window. That means a sudden gap in legal work status, which forces unpaid leave or termination. So the practical risk is operational, not just legal. Build a renewal tracker now, before the rule finalizes.

Oregon Shields Workers Who Update Federal Work Documents

Oregon took the protective route. House Bill 4111 took effect June 5, 2026. The law bars retaliation when an employee updates their records after a lawful change to federal work documents. (Source: Squire Patton Boggs) In plain terms, if a worker’s name or status changes legally and they update their records, you cannot punish them for it.

Who needs to act? Any employer with staff in Oregon. Review your handbook and your I-9 reverification steps so a routine document update never triggers discipline. For HR teams, this pairs directly with the federal discretionary work authorization changes. As status documents shift more often under the new federal rule, clean reverification habits protect both the worker and you.

Washington Lifts the Cap on Willful Wage Penalties

Washington sharpened its wage enforcement on June 11, 2026. House Bill 2479 lets the Department of Labor & Industries expand a single wage complaint into a company-wide audit. (Source: Washington Legislature) The law also broadens the definition of willfulness and removes the $20,000 cap on penalties for willful violations. So one underpaid worker can now open the books on your entire Washington payroll.

The same day, a second law took effect. House Bill 2105 adds an I-9 step. If an inspection finds deficiencies, you must notify the worker and describe the problem. You must also give them time to fix it, offer a meeting, and note their right to representation. (Source: Squire Patton Boggs) Therefore Washington employers should review payroll records and I-9 files together this quarter, not separately.

Quick Hits: Work Permits and Compliance Around the World

• Philippines: The Department of Labor and Employment centralized all Alien Employment Permit processing at its Central Office, effective June 9, 2026. Regional offices no longer accept or issue AEPs. (Source: BAL) If you sponsor foreign staff there, route new filings through the Central Office and check our Philippines hiring guide.
• New York: From June 10, 2026, OSHA-covered employers must keep an opioid antagonist in workplace first-aid supplies, readily available to staff. (Source: Squire Patton Boggs)
• Indiana: From July 1, 2026, it becomes unlawful to knowingly employ an unauthorized worker, with a safe harbor for employers who use E-Verify or comparable diligence. (Source: Squire Patton Boggs)

Action Items This Week

If you employ EAD holders in the US: Audit everyone on discretionary work authorization, especially H-4 spouses and pending adjustment-of-status staff. Map renewal dates against the proposed one-year cap. File a Federal Register comment by August 4 if these categories affect your team.

If you hire in Oregon: Update your handbook so document updates after a lawful status change cannot trigger discipline. Brief managers before they handle reverification.

If you hire in Washington: Reconcile payroll records and I-9 files this quarter. One wage complaint can now become a full audit, and willful penalties no longer cap at $20,000.

If you sponsor staff in the Philippines: Route every new Alien Employment Permit filing through the DOLE Central Office. Expect a short transition while regional cases migrate.

If tracking these moving deadlines across countries is pulling your team off real work, that is exactly what an employer of record handles. Asanify’s US work permit and visa guidance and Global HRMS keep multi-country payroll, status tracking, and compliance in one place. Worth a look before your next renewal cycle.

FAQ: Discretionary Work Authorization and Global Hiring

What is discretionary work authorization?

Discretionary work authorization is permission to work that an immigration officer grants based on judgment, not an automatic right. It covers EAD categories like H-4 spouses, asylum applicants, and adjustment-of-status applicants. Because it is discretionary, the government can tighten the criteria, as the June 2026 DHS proposal does.

Does the DHS rule apply to my employees right now?

No. It is a proposed rule with a public comment period that closes August 4, 2026. Existing regulations still govern these EADs until any final rule takes effect. Use this window to audit affected staff and submit comments.

Do we need an EOR if we have one employee abroad?

Often, yes. For most startups with one or two hires in a country, an employer of record removes the tax, payroll, and work-authorization risk of setting up a local entity. Larger teams in a single country sometimes hire direct instead. Asanify’s Global HRMS helps you model both paths.

How often do work authorization and employment rules change?

Frequently, and sometimes overnight. The Philippines centralized work-permit processing in a single order, and the US can shift EAD validity through one proposed rule. A per-country compliance calendar and monthly checks are essential for distributed teams.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.