Key Takeaways
• 75% of businesses expect immigration policy changes to impact operations within the first year of the Trump administration.
• Retailers face higher risks due to dependence on immigrant labor and rising federal and state compliance audits.
• Over half of surveyed firms worry about stricter hiring rules and possible loss of business licenses for non-compliance.
Immigration Policy Rises as Top Workplace Worry for Retailers: Key Takeaways from the Littler Report
The Littler report highlights how immigration policy has quickly become one of the most important workplace problems for companies in the United States 🇺🇸, especially for those in the retail sector. As the country faces changes in government rules under the Trump administration, this study from one of the world’s largest employment law firms helps us understand what businesses are worried about, what they expect, and how it might impact workers and consumers. If you work in retail, manage a team, or simply want to know what’s going on with jobs and immigration in the coming year, these findings matter.
Who’s Behind the Littler Report?
Every year, Littler—an international law firm focused on employment and labor—asks leaders from nearly 350 big companies what issues worry them most. The newest version, called the 13th Annual Employer Survey, included responses from top executives, in-house lawyers, and human resources (HR) experts. Notably, 36% of the people surveyed are C-suite leaders (meaning they are at the very top of their companies, like CEOs, CFOs, and COOs).
This survey is important because it gives a real snapshot of what is keeping business leaders up at night. This year’s Littler report makes clear that, for many, immigration policy is a front-and-center issue—especially if they’re in the retail sector.
What’s Driving Employer Concern About Immigration Policy?
From national politics to local laws, many things are changing fast. The report shows several clear reasons why companies are anxious:
- Three out of Four Expect an Impact
According to the Littler report, 75% of businesses think adjustments to immigration policy will affect their work within the first year of the Trump administration. This is not just a small group of worried owners—it’s most companies surveyed. -
Retail’s Special Situation
Retailers depend heavily on workers from different backgrounds, including many immigrants. As these businesses often need to quickly hire lots of staff (especially during busy times like holidays), any changes to visa rules or more paperwork checks can quickly cause trouble. In fact, the Littler report states that these worries about immigration regulations are even higher in retail compared to other sectors. -
Staffing and Compliance Pressures
Over half—58%—of all businesses in the survey are concerned about how stricter immigration rules might make hiring hard. For many, there is a looming fear that government agencies will soon begin more frequent and sometimes sudden checks at their workplaces, making things even more complicated.
The Littler report also says 70% of those surveyed expect major or moderate impact if there’s an increase in government audits, especially those done by U.S. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations (HSI).
Why the Retail Sector Feels the Pressure More Than Others
Retailers have some unique risks when it comes to immigration policy. These include:
- Worksite Enforcement Is Set to Rise
Under current federal policy, there is an expected jump in the number of government audits at stores, warehouses, and offices. This means retailers need to double-check all employee documents, especially the I-9 forms. An I-9 form is a simple document required by the U.S. 🇺🇸 government showing that each employee is legally allowed to work in the country.
More frequent audits mean if stores aren’t careful, they could face big fines or even lose their business licenses in some states. -
Quote from an Expert
Jorge R. Lopez, chair of Littler’s Immigration & Global Mobility Practice Group, put it clearly:
“With the expected uptick in worksite enforcement, it is important for employers to proactively conduct reviews to check that I-9 forms are up to date… there is a crisis management team in place…”
His advice reflects how important preparation is—with so much at stake, even a small mistake can cause a big problem. -
Staffing Struggles Get Worse
The Littler report also makes it clear that changes in immigration policy—such as stricter requirements to get a job-based visa or possible travel bans—make it hard for retailers to find and keep enough workers. This is especially true right before busy seasons, when demand for goods and services shoots up.
Patchwork of Rules Makes Life Complicated
It’s not just about federal law. The Littler report found that many employers are struggling to keep up as states and local areas create their own rules. Some states are making it much tougher for businesses to avoid hiring workers who are not authorized. For example, there is a bigger push to use E-Verify—a government tool that electronically checks if someone’s identification is real and matches federal records. More states are looking at strict penalties for those who don’t follow the rules, including heavy fines or even shutting down a business.
The Regulatory Maze
- Uncertainty is a Real Problem
A big finding in the Littler report is that a patchwork of federal, state, and local rules has created a state of confusion about what businesses must do to comply. It’s hard for companies to know exactly which rules matter most, especially when they operate in more than one state. -
New Legislation
As reported by VisaVerge.com, legislative trends include broader use or stricter rules for E-Verify in different states. According to the Littler report, some lawmakers have even discussed taking away business licenses for companies that break these rules. This adds more stress and paperwork for anyone hiring or managing workers, especially in retail where large numbers of people are employed.
How Immigration Policy Intersects with Other Workplace Issues
Immigration is not the only challenge occupying business leaders’ attention. In fact, the Littler report makes it clear that other workplace values, like inclusion, equity, and diversity (sometimes called DEI), are just as pressing.
- Rising Litigation Risks
Nearly half (45%) of the companies surveyed are worried about being sued over inclusion or equity programs. This is a big change compared to earlier years. And even though rules are getting stricter in some places, most companies say they do not plan to roll back (or reduce) their programs for diversity and equity. -
Religious Accommodation and DEI Tensions
The Littler report notes an increase in conflicts where an employee’s religious needs clash with a company’s diversity or equity goals. This kind of incident is especially common in the retail and hospitality sectors—almost half of those businesses said they had seen conflicts like this recently. Across all other types of companies, it’s just over a third, so retail and hospitality are feeling these problems much more.
Why Now? Context Behind the Numbers
The 2025 Littler report comes at a time of big change and uncertainty. Over the last few years, both employers and workers have had to respond to new health concerns, changes in consumer needs, and quickly shifting laws about who can work and under what conditions. Immigration policy has always affected the workplace, but with enforcement actions on the rise and lawmakers adding more rules about hiring and paperwork, the impact is being felt more than ever in places like retail.
For retailers specifically, these new pressures hit right where it hurts—they must hire fast and at scale, yet face rising risks if even small paperwork mistakes are made. Companies must prepare for more audits and be ready to show that every worker is properly authorized, or risk serious fines. At the same time, they cannot ignore the need to treat all workers fairly, celebrate diversity, and balance the often-conflicting legal requirements that come from different states and federal authorities.
What Can Retailers Do?
The Littler report gives some clear advice for business owners, HR professionals, and anyone responsible for hiring in the retail sector:
- Review and Update I-9 Forms Regularly
Firms must regularly review all immigration paperwork, especially the I-9 forms. This is not only good practice but also a smart way to catch problems before a government agency does. For more on I-9 compliance, you can visit the official U.S. Citizenship and Immigration Services page. -
Have a Crisis Management Plan
As Jorge R. Lopez recommends, every business needs to have a plan for surprise audits or site visits. This means having clear steps for what to do if ICE or HSI agents appear at your store. -
Keep Track of Changing Laws
Since states are making their own rules, what works in one place might not be good enough in another. Businesses that operate in several states need to pay close attention and update their policies as needed. -
Balance Compliance with Inclusion
While it’s important to follow every legal rule, businesses should also keep working on inclusion and equity programs—these are important for morale and for staying competitive in the job market.
What Are the Risks If Retailers Ignore These Issues?
Ignoring immigration policy changes could mean:
- Fines or business shutdowns: States are starting to take away licenses from companies that break the rules or do not use E-Verify as required.
- Loss of valuable employees: If retailers do not keep up with visa or work permit requirements, they may lose key workers—sometimes at the worst possible moments, like during holiday shopping seasons.
- Bad publicity: News about immigration compliance problems can lead to public relations headaches, lost sales, or trouble hiring in the future.
Long-Term Outlook: What the Littler report Signals for the Future
As the United States 🇺🇸 continues to adjust its approach to immigration and workplace enforcement, businesses will keep facing new hurdles. The Littler report expects regulatory scrutiny—meaning close government attention—to only get stronger through 2025. That’s why it’s so important for retailers to stay alert, to update their paperwork, and to make sure they’re ready for whatever comes next.
At the same time, those who adapt early—by putting good systems in place and by balancing legal needs with worker well-being—are likely to weather this storm better than competitors. The stakes are high, but the path forward is also clear: Prepare, review, and remain fair to both workers and the rules.
Summary: Key Points for Retail Employers
To wrap up, here are the main takeaways if you’re in the retail sector or manage teams affected by U.S. immigration policy:
- The Littler report has identified immigration policy as one of the biggest workplace worries for 2025, especially for the retail sector.
- Most employers expect to feel changes as the Trump administration adjusts immigration rules.
- Retailers are at extra risk because they must hire fast, use large workforces, and face more scrutiny from government agencies.
- Regular checks of I-9 forms, keeping up with both state and federal rules, and planning for audits can help reduce risk.
- Inclusion, equity, and diversity stay important—and sometimes clash with new rules, so balance is key.
- Not paying attention could lead to big fines, lost staff, or damaged reputation.
- The Littler report suggests more government checks and new laws are likely on the way, so action now can make a big difference.
If you want more details about workplace immigration rules or about the Littler report, check official resources like USCIS’s I-9 information, or review industry research at VisaVerge.com.
Retailers and other employers should stay watchful, be prepared for rapid changes, and always put compliance and fair treatment of workers first as immigration policy keeps shifting.
Learn Today
I-9 Form → A federal document verifying if an employee is legally authorized to work in the United States, required for every new hire.
E-Verify → An online system used to confirm employees’ work eligibility by matching their information against government records for compliance.
ICE (Immigration and Customs Enforcement) → A federal agency conducting immigration enforcement, workplace audits, and investigations into unauthorized employment within the U.S.
C-suite → Top senior executives in a company, such as CEO, CFO, and COO, involved in strategic decisions and business operations.
DEI (Diversity, Equity, and Inclusion) → Workplace initiatives focused on fostering equal treatment, representation, and opportunities for diverse employees.
This Article in a Nutshell
As the 2025 Littler report reveals, U.S. retailers increasingly view immigration policy as a top threat. With stricter rules from federal and state governments, companies face audits, staffing shortages, and legal risks. Proactive compliance, updated records, and balanced diversity programs are now essential to surviving intense workplace scrutiny and rapidly shifting regulations.
— By VisaVerge.com
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