EOR & Compliance Digest, July 15: TPS Work Authorization Deadline Hits Six Countries This Week

If you employ workers under Temporary Protected Status from Myanmar, Ethiopia, Somalia, South Sudan, Syria, Yemen, or Haiti, this week matters. A new TPS work authorization deadline lands July 17 for six of those countries. Haiti gets until July 24. USCIS has moved this date before, so don’t treat it as final. Meanwhile, India’s payroll teams are still absorbing the 50% basic pay rule. Virginia just changed how noncompetes get enforced. Denmark raised the bar for work permit salaries. Four countries, one theme: the paperwork window keeps shrinking.

The TPS Work Authorization Deadline: What Changed, and What Didn’t

What the TPS work authorization deadline covers

USCIS confirmed on July 10 that Employment Authorization Documents tied to Temporary Protected Status remain valid a little longer. Burma, Ethiopia, Somalia, South Sudan, Syria, and Yemen holders are covered through July 17, 2026. Haitian TPS holders get an extra week, through July 24. The extensions apply specifically to EADs coded A12 or C19 on Form I-766. This is not a new grant of status. It’s a short bridge while lower courts work out how to apply the Supreme Court’s June 25 ruling in Mullin v. Doe. That decision let the administration move ahead with terminating TPS for Haiti and Syria.

Why the TPS deadline keeps moving

This is the third or fourth time USCIS has pushed the TPS work authorization deadline back. The previous cutoff was July 10. Before that, it was earlier still. For employers, that pattern matters more than any single date. Treat July 17 and July 24 as the current checkpoint, not a hard stop. USCIS could extend again. Or the courts could change the calculus entirely. Either way, you cannot assume automatic termination of work eligibility just because a date passes.

What to do before July 17

Pull work authorization records for anyone whose I-9 lists an EAD category of A12 or C19 from these seven countries. For the six-country group, enter “as per court order” in Section 1. Enter “July 17, 2026” in Section 2, plus a note in the additional information box. Haitian employees get “July 24, 2026” in the same fields. If you use E-Verify, the case should reflect the same date pulled straight from Form I-9. Don’t take adverse action, like suspending someone from payroll, based solely on a looming date. Talk to immigration counsel first. Review your US hiring and verification process so this doesn’t catch your team off guard next time. USCIS and E-Verify’s M-274 Handbook, updated in sections 5.0 through 5.3, has the specifics.

India’s 50% Basic Pay Rule Is Reshaping Payroll Right Now

India’s four consolidated Labour Codes took effect November 21, 2025. One provision is still working its way through payroll systems eight months later: basic pay, plus dearness allowance, must equal at least half of total cost-to-company. The Ministry of Labour and Employment confirmed the framework in its official FAQ on the codes. In practice, employers restructuring a package where basic pay was 30% of CTC now have to push it to 50%. That pulls Provident Fund and gratuity contributions up with it. If basic pay doubles from ₹25,000 to ₹50,000 a month, the employer’s PF contribution doubles too, from ₹3,000 to ₹6,000. The employee’s offer letter total doesn’t change at all. Full and final settlements move faster now too: two working days after an exit, down from the 30 to 45 days many companies used before. If you have any headcount in India, check your salary structure against that 50% threshold. It’s the same kind of proactive check this week’s TPS work authorization deadline calls for on the immigration side. Several states still haven’t notified their own rules, so both the old acts and the new codes apply until they do.

Virginia Rewrites the Rules on Noncompetes and Severance

Virginia’s SB170 took effect July 1. It changes something specific: a noncompete signed, amended, or renewed on or after that date is void if the employer later fires the person without cause and doesn’t pay severance. There’s a new disclosure piece too. Employers now have to spell out, at the moment the noncompete is signed, what severance or payment would support enforcing it later. The law doesn’t set a minimum dollar figure. Expect guidance from the Virginia Department of Labor or case law to fill that gap over time. Noncompetes signed before July 1 aren’t touched. The rule still allows enforcement against employees fired for cause or who quit on their own. Virginia also updated pay transparency and expanded paid sick leave the same day. If you have Virginia employees, this is a good week to review every agreement template you use there.

Denmark Raises the Bar on Work Permit Salaries

Denmark’s Pay Limit Scheme now requires an offered annual salary of at least DKK 552,000 under the ordinary track. The supplementary track needs DKK 446,000. Both are up from 2025 levels. On top of that, applications submitted after June 30 get assessed against Q1 2026 income statistics instead of older data. The Danish immigration service refreshes that figure every quarter. Only fixed and guaranteed pay counts toward the threshold. Bonuses, commissions, and benefits like housing or meals don’t. If you’re sponsoring anyone into Denmark this quarter, run their offer letter against the current numbers before you file. A package that cleared the bar in January might not clear it now.

Quick Hits

Outside this week’s TPS work authorization deadline, four more updates are worth a skim:

• Mississippi signed HB 4073 into law, creating a state-run Work and Save retirement program. Employees at companies without a 401(k) can opt into payroll-deducted Roth IRA contributions once it launches. PR Newswire
• Illinois stopped counting employer 401(k) contributions made after June 30 as “wages” for unemployment insurance reporting. Employee contributions still count. EY Tax News
• Indiana’s FAIRNESS Act took effect July 1. It bars employers from knowingly hiring or continuing to employ unauthorized workers, with penalties up to $10,000. E-Verify use creates a safe harbor. Ogletree Deakins
• The European Commission confirmed it won’t extend the June 7 Pay Transparency Directive deadline that most member states missed. Infringement letters under Article 258 could start later this year. Littler

Action Items This Week

If you employ TPS holders from Myanmar, Ethiopia, Somalia, South Sudan, Syria, or Yemen: Update Form I-9 Section 2 with “July 17, 2026” before that date. Confirm your E-Verify case matches. The TPS work authorization deadline has moved three times already, so don’t assume this one is final.

If you employ Haitian TPS holders: Same process, but your working date is July 24, 2026. Loop in immigration counsel before removing anyone from payroll.

If you run payroll in India: Audit whether basic pay plus dearness allowance hits 50% of CTC. If not, budget for higher PF and gratuity costs before your next restructuring cycle.

If you use noncompetes in Virginia: Update your template to disclose severance terms at signing. Confirm you’re not relying on any agreement signed after July 1 without a severance clause.

If you’re sponsoring a work permit in Denmark: Re-check the offered salary against the DKK 552,000 (or DKK 446,000 supplementary) threshold before filing. Use only fixed and guaranteed pay in that calculation.

Every one of these changes touches the same nerve: paperwork windows are shrinking, and the penalties for missing them are not. Juggling TPS deadlines, Indian wage restructuring, Virginia noncompete templates, and Danish salary thresholds is a lot for one HR team to track by hand. Asanify’s Global HRMS keeps multi-country compliance calendars in one place. Worth a look before your next filing.

Frequently Asked Questions

What is the TPS work authorization deadline for July 2026?

The TPS work authorization deadline for July 2026 covers USCIS-extended Employment Authorization Documents. TPS holders from Burma, Ethiopia, Somalia, South Sudan, Syria, and Yemen are covered through July 17, 2026. Haiti is covered through July 24, 2026. These are short bridge extensions tied to ongoing litigation, not a final cutoff. USCIS has moved the date several times already.

Do employers have to fire employees when their TPS work authorization deadline passes?

No, not automatically. USCIS has repeatedly extended these dates. Employers should confirm current guidance through USCIS or E-Verify before taking any adverse action. Involve immigration counsel rather than assuming work authorization has lapsed.

How does India’s 50% basic pay rule affect PF and gratuity?

Basic pay plus dearness allowance must equal at least 50% of an employee’s cost-to-company under India’s Labour Codes. PF and gratuity are calculated on basic pay. Raising it to hit that threshold increases both employer contributions and end-of-service payouts, even when total CTC stays the same.

Can Virginia employers still use noncompete agreements?

Yes, but as of July 1, 2026, any noncompete signed, amended, or renewed after that date works differently. It’s unenforceable if the employer fires the employee without cause and doesn’t provide severance or another monetary payment. Employers must disclose those terms at the time the agreement is signed.

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.