EOR & Compliance Digest, May 28: USCIS Adjustment of Status Memo Tightens H-1B and L-1 Green Card Path

Four employer headlines this week sit on different continents, but they all push the same way: less benefit of the doubt for filers, more procedural weight on employers. First, the USCIS adjustment of status memo turns I-485 approval into a discretionary call, not a checklist. Meanwhile, Colombia hits two July 1 deadlines that change payroll math. In addition, Brazil starts fining employers who skipped mental-health risk mapping. And India just locked in final social security rules for gig and platform workers. Each one is a payroll, hiring, or sponsorship decision you cannot defer.

USCIS Adjustment of Status Reframed as Discretionary Relief

USCIS issued Policy Memorandum PM-602-0199 on May 21, 2026. Specifically, the memo reframes how officers must handle Form I-485 adjustment of status applications. In practice, that filing is the green card route most H-1B, L-1, and other dual-intent visa holders rely on. Notably, it does not strip any eligibility category. However, it tells officers that adjustment of status is an “extraordinary form of relief” and “a matter of administrative grace.” Therefore, USCIS adjustment of status decisions are now framed as discretionary first and technical second.

What changed in USCIS adjustment of status guidance

First, the memo updates the USCIS Policy Manual, Volume 7, Part A, with new instructions that elevate discretionary review. Now, officers must weigh “positive and adverse” factors, even when statutory eligibility is met. Specifically, conduct “inconsistent with the purpose” of temporary admission, parole, or nonimmigrant status is flagged as an adverse factor. Per Ballard Spahr’s employer alert, the guidance is most consequential for filers whose nonimmigrant intent record is mixed. For instance, that includes H-1B and L-1 holders who switched roles, took unpaid leave, or worked through extended status windows.

In contrast, Harris Beach Murtha notes that immediate relatives of US citizens, VAWA self-petitioners, refugees, asylees adjusting under INA Section 209, and Special Immigrant Juveniles stay protected. Because their statutes mandate adjustment, officer discretion has less room in those categories.

Why USCIS adjustment of status now needs extra evidence

For sponsoring employers, the practical shift is documentation. Consequently, officers can deny technically eligible cases on discretion alone, and Requests for Evidence are likely to expand. Therefore, if you sponsor an H-1B or L-1 employee on a pending I-485, build a stronger paper trail this quarter. Specifically, that means detailed job duties tied to the PERM, continuous payroll, evidence of physical presence on the worksite, and clean immigration history attestations.

Moreover, Boundless flagged in its breakdown that filers should prepare to interview, even for categories that previously skipped one. As a result, in-house mobility teams should re-baseline pending USCIS adjustment of status files this week. After that, expect adjudication queues to catch up to the new posture. If your US sponsorship volume is growing, also revisit how you handle visa sponsorship documentation. In addition, audit how your US hiring playbook manages long-pending green card cases.

Colombia Cuts Workweek to 42 Hours and Lifts Surcharges July 1

Meanwhile, Colombia’s Ministry of Labour confirmed two changes that hit on the same day. First, from July 1, 2026, the maximum legal workweek drops from 44 hours to 42 hours under Law 2466 of 2025. At the same time, the Sunday and public holiday surcharge rises from 80% to 90% of the hourly rate. Then, the 100% surcharge follows in July 2027.

For payroll, this means contracts and shift templates must be updated. Specifically, if you employ engineers, support staff, or contractors in Colombia, salaries cannot drop with the shorter week. So you absorb roughly a 4.5% productivity hit unless you redistribute hours across more days. Also, for weekend operations like ecommerce, BPO, or fintech support, model the 90% surcharge into your June run-rate. In addition, Littler flagged that the Ministry will inspect schedule templates, time-tracking, and payroll runs after the change. Before mid-June, check the new math against your current Colombia payroll setup.

Brazil Starts Fining Employers Over Mental-Health Risks

Earlier, the educational grace period on Brazil’s revised Regulatory Standard 1 (NR-1) ended May 25, 2026. Then, from May 26, labour inspectors began fining employers whose Programa de Gerenciamento de Riscos (PGR) skips psychosocial risk factors. Specifically, stress, harassment, workload, lack of autonomy, and unfair treatment are all in scope, per Fisher Phillips’ compliance brief.

If you employ anyone in Brazil on CLT contracts, this is not optional. In contrast to the prior 12-month transition window, inspections now look for live evidence. For example, that includes a documented risk assessment, a named responsible officer, employee training records, and integration into the broader GRO. Therefore, confirm with your local HR partner or EOR that filings are current. For more context, see the Brazil labour law overview and the country employment laws guide.

India Notifies Final Rules for Gig Worker Social Security

Also, India’s Ministry of Labour and Employment published the Social Security (Central) Rules, 2026 on May 8. The rules operationalise the Code on Social Security, 2020, for gig and platform workers. Moreover, they place direct compliance duties on aggregators including ride-hailing, food delivery, and ecommerce platforms. Per the rules, aggregators must register every gig and platform worker on the designated portal within 45 days.

In addition, the rules mandate a National Social Security Board for gig workers. They also require states to set up Gig Worker Welfare Boards. For employers using Indian contractors through aggregator platforms, this changes the risk picture. Specifically, your platform partners now carry contributions and worker registration as a statutory duty. As a result, your indirect labour cost will move. Finally, Law.asia notes that the 90-day work threshold unlocks individual benefit eligibility, so contract duration design matters.

Quick Hits This Week

• The EU Pay Transparency Directive transposition deadline is 10 days away on June 7. The Commission confirmed in December 2025 that there will be no postponement.
• Australia’s Fair Work Commission is expected to hand down its 2026 minimum wage decision in early June, effective from the first full pay period on or after July 1.
• Germany’s first LkSG amendment moved through its first Bundestag reading on January 16. The annual reporting obligation is set for retroactive repeal back to January 1, 2023.

USCIS Adjustment of Status, Colombia, Brazil, and India Action Items

If you sponsor H-1B or L-1 staff in the US: Audit pending USCIS adjustment of status filings this week. Pull a copy of the PERM and the I-485. Then refresh employer support letters with current job duties, worksite address, and payroll continuity evidence. Brief any employee with an upcoming interview.

If you employ workers in Colombia: Update shift templates, internal regulations, and time-tracking by mid-June. After that, recalculate Sunday and holiday payroll runs using the 90% surcharge starting July 1.

If you have CLT-employed staff in Brazil: Confirm your PGR includes psychosocial risk factors and a named monitoring officer. In addition, schedule employee training and update onboarding to cover stress and harassment risk.

If you use Indian gig or platform workers: Ask your aggregator partners which 45-day registration window applies to your contracted headcount. Then request copies of their portal registrations and confirm contribution flow-through pricing.

Coordinating compliance across four jurisdictions in one week is the job an EOR is built for. Specifically, Asanify’s Global EOR handles USCIS adjustment of status sponsor docs, Colombia payroll surcharge math, Brazil PGR filings, and India gig worker registration in one workflow. Worth a look if your team is stretched thin on local counsel.

FAQ

What does the USCIS adjustment of status memo change for H-1B sponsors?

The May 21, 2026 memo (PM-602-0199) tells USCIS officers to treat Form I-485 as discretionary relief, even when statutory eligibility is met. As a result, H-1B and L-1 sponsors should expect more Requests for Evidence. Therefore, prepare stronger documentation on job duties, payroll continuity, and immigration history.

When does Colombia’s 42-hour workweek take effect?

July 1, 2026. On the same day, the Sunday and public holiday surcharge rises from 80% to 90% of the hourly rate under Law 2466 of 2025. Salaries cannot be reduced as a result of the shorter week.

What is Brazil’s NR-1 enforcement date and scope?

Labour inspectors began issuing fines on May 26, 2026. Specifically, every employer in Brazil with CLT-employed staff must include psychosocial risk factors in their Programa de Gerenciamento de Riscos. For example, stress, harassment, and excessive workload are all in scope.

Who must register gig workers in India under the new rules?

Aggregators, including ride-hailing, food delivery, and ecommerce platforms, must register every gig and platform worker on the designated government portal. Specifically, registration must happen within 45 days. The Social Security (Central) Rules, 2026 were notified on May 8.

Does the USCIS adjustment of status memo affect family-based green card filings?

Immediate relatives of US citizens, VAWA self-petitioners, refugees, asylees adjusting under INA Section 209, and Special Immigrant Juveniles remain in mandatory adjustment categories. In contrast, the discretionary heightening primarily hits employment-based and other discretionary filings.

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.