DACA Reopens: Employers Must Update I-9 Compliance and Policies

(TEXAS) The federal government is poised to resume accepting new DACA applications nationwide—except for work authorization in Texas—pending a final court order that could arrive soon, marking the first reopening since 2021.

Federal courts have held that DACA’s deportation protection is lawful across the United States 🇺🇸, while a Fifth Circuit decision in January 2025 left the work permit component on shaky legal ground in Texas. No party sought Supreme Court review by the May 20, 2025 deadline, so the ruling is moving toward implementation. For employers, the coming weeks will likely bring fresh I-9 verification challenges and anti-discrimination risks, as thousands of new applicants could soon qualify for lawful employment outside Texas.

Under the expected framework, U.S. Citizenship and Immigration Services (USCIS) would begin taking and approving new DACA applications after the court issues a formal order. Renewals remain open nationwide, and current recipients should keep renewing on time. But Texas stands apart: new DACA applicants in the state are not expected to receive work authorization. That split outcome—and the potential for more lawsuits—will shape HR policies, onboarding, and day-to-day compliance.

Employers should plan for two parallel realities. In most states, new DACA recipients will receive an Employment Authorization Document (EAD) and can lawfully work once onboarded with proper I-9 verification. In Texas, new applicants may gain deportation protection but not an EAD, which means no federal work authorization for those applicants. Multistate companies must keep close track of location-based rules, given the real possibility that a DACA employee who relocates to Texas could lose work authorization tied to that move.

Policy Changes Overview

USCIS is expected to greenlight new DACA filings following the finalization of court procedures, ending a four-year freeze. The shift stems from federal court rulings that allowed the core deportation protection to stand. But because the Fifth Circuit treated work authorization differently in Texas, the EAD piece will not extend to new applicants there. The exact start date hinges on a formal court order, which stakeholders anticipate could come soon.

As this unfolds, two key facts drive employer planning:

• DACA status is temporary. It does not confer permanent immigration status; it offers protection from deportation and, outside Texas for new applicants, a path to work authorization via an EAD.
• Benefits limitation. DACA recipients remain ineligible for ACA Marketplace health coverage as of June 2025, which affects benefits planning and counseling for HR teams.

USCIS and the Department of Homeland Security will publish operational updates, including the date when new filings begin. Employers and counsel should watch the agency’s official DACA page for procedural details, forms, and any interim guidance. The agency’s resource hub is available at USCIS: Consideration of Deferred Action for Childhood Arrivals (DACA).

Impact on Employers and HR

The return of new applications will likely expand the pool of work-authorized candidates outside Texas, and employers may see more jobseekers presenting EADs during onboarding. For I-9 verification, an unexpired EAD is a valid List A document. Under federal rules:

• Employers must accept valid documents that reasonably appear genuine and relate to the person.
• Employers cannot demand extra papers, set different rules for DACA recipients, or single out workers based on their status.
• Such discriminatory practices can trigger penalties.

For Texas employers, the rule is different: new DACA applicants in Texas are not expected to receive work authorization, meaning they will not have an EAD to present for I-9 verification. Companies should:

• Build neutral screening questions into standard onboarding workflows that apply to all candidates.
• Train teams to avoid unlawful document requests while maintaining consistent, lawful procedures.

According to analysis by VisaVerge.com, the lack of work authorization for new DACA applicants in Texas will create uneven access to jobs and might reshape internal transfer policies. Employers with staff in multiple states should consider stronger pre-transfer reviews. A worker with a DACA-based EAD issued outside Texas could face a change in eligibility after relocating, depending on how the final order is implemented.

Coordinating early with immigration counsel can reduce sudden work stoppages and help prevent I-9 reverification surprises.

Common onboarding mistakes to avoid

Employers must treat an unexpired EAD like any other valid List A document.

Refresh training to prevent common errors, such as:

• Asking for a Social Security card in addition to an EAD
• Refusing an EAD because it’s tied to DACA
• Setting shorter rehire windows for DACA workers than for others
• Reverifying early or more often than required

Employers should also plan for reverification. DACA-based EADs expire, and reverification must occur before the expiration date to avoid unauthorized employment. Recommended steps:

1. Set calendar reminders for expirations.
2. Use secure tracking systems for document dates.
3. Notify employees well in advance of impending expirations.

Apply the same policies uniformly across the workforce.

Compliance Essentials and Practical Steps

• Monitor official announcements for the effective date of new filings and approvals. The reopening won’t be real until the court order lands and USCIS confirms processing.
• Update I-9 policies and training. Use the latest edition of Form I-9, Employment Eligibility Verification and follow instructions closely. The official form and guidance are available at Form I-9, Employment Eligibility Verification.
• Prepare systems to onboard candidates with DACA EADs outside Texas. Ensure your HR systems capture:
  • Document number
  • Document category
  • Expiration date
• Build fair reverification practices. Apply the same timelines for all limited-duration work permits, not just DACA. Avoid early reverification unless required by law.
• For Texas: exercise added caution. New DACA applicants in Texas should not be expected to present an EAD. Consider consulting counsel before hiring or transferring DACA recipients into Texas roles.
• Support retention. Offer flexibility for immigration appointments and consider assistance with renewal costs to reduce turnover tied to EAD renewal cycles.

Legal Uncertainty and Contingency Planning

The legal backdrop remains unsettled. Opponents of DACA are widely expected to file new challenges that could alter the scope or timing of work authorization. Employers should not assume today’s rules will hold indefinitely.

Suggested contingency measures:

• Alternate staffing plans
• Phased start dates
• Remote roles based outside Texas where appropriate

Workers and families will feel the effects quickly. For many who arrived as children, the chance to apply for DACA again opens doors to jobs, internships, and apprenticeships—especially in states recognizing work authorization for new applicants. In Texas, the lack of EADs for new applicants will limit options and may push some workers to seek roles in other states. Multistate employers should anticipate more internal requests to transfer out of Texas to preserve work eligibility.

Preventing Discrimination and Maintaining Records

Employers should guard against bias. Even well-meaning managers sometimes ask DACA recipients for more documents “just to be safe.” That approach is unlawful.

The correct standard is simple:

• Accept documents that meet Form I-9 rules.
• Treat all workers the same.
• Avoid extra hurdles based on status.

Reinforce this message through training to protect both the company and the worker.

Also, maintain strong documentation of compliance efforts:

• Policy updates
• Training records
• Audit notes

A clear paper trail demonstrates a good-faith effort to follow the rules if questioned later.

Communications and HR Resources

Until USCIS announces the exact start date for new filings, employers should prepare communications for recruiting and HR teams so they know what to do when candidates ask about DACA, work authorization, and I-9 verification. Suggested internal FAQ topics:

• Where DACA applicants can find official updates
• What documents are acceptable for I-9
• How reverification works for EAD holders
• How Texas-specific rules affect hiring and transfers
• Benefits eligibility, noting DACA recipients remain ineligible for ACA Marketplace coverage as of June 2025

For official program updates as this shift moves forward, see USCIS: Consideration of Deferred Action for Childhood Arrivals (DACA). For day-to-day hiring, ensure your teams use the most current Form I-9, Employment Eligibility Verification and apply the same standards to every worker.

Key Takeaways

• The reopening of new DACA applications is expected soon, but Texas is likely to be excluded from the work-authorization component.
• Outside Texas, employers must accept valid DACA EADs as List A documents and follow standard I-9 procedures.
• Inside Texas, new DACA applicants are not expected to receive EADs—plan hiring and transfer policies accordingly.
• Update I-9 policies, refresh training, monitor USCIS announcements, coordinate with counsel, and keep clear records.

The next few weeks could redefine the talent pool for many employers. Planning now—grounded in fair, uniform processes—will help companies meet demand, protect workers, and stay compliant as DACA reopens.