- Major U.S. corporations report widespread operational disruptions due to shifting DEI and immigration policies.
- The technology and hospitality sectors face 81% impact rates on their business operations.
- Increased legal risks have doubled litigation anxiety regarding corporate diversity programs among leadership.
(US) — U.S. employers reported widespread disruption tied to DEI policy changes and immigration policy changes during the first year of President Trump’s second term, with very large companies describing the heaviest operational exposure, a Littler Workplace Policy Institute survey found.
The survey of over 300 in-house counsel, HR leaders and C-suite executives linked the two policy areas as parallel compliance-and-workforce pressures, with many respondents describing the combined effect as a material constraint on hiring and day-to-day management.
Large employers with over 10,000 workers reported higher rates of impact than smaller companies, the survey found, a pattern that companies and attorneys said can reflect how big workforces face simultaneous compliance reviews across locations, business units and job categories.
Technology, retail and hospitality employers stood out for immigration-related disruption, with 81% of employers in each sector reporting business effects, the survey found.
Staffing challenges also emerged as a cross-cutting outcome of immigration shifts, especially for large employers, as companies described strain in recruiting, retention, role backfills and the internal capacity needed to keep up with compliance workloads.
Some employers responded by limiting sponsorship programs, the survey found, a step that can narrow pipelines for roles that depend on employer-sponsored workers and add uncertainty for teams planning start dates, relocation and onboarding.
The findings arrived after earlier employer surveys signaled that legal risk and workforce constraints were building. In May 2025, Littler’s poll of about 350 leaders showed 84-85% expecting DEI impacts and 75% worried about immigration, suggesting many companies entered the start of the term already anticipating near-term operational change.
That earlier snapshot also pointed to rising litigation anxiety around DEI. Littler found that litigation fears over DEI doubled to 45% from 24% the prior year, a shift that workplace lawyers said can change how employers structure approvals, documentation and internal review even when the underlying hiring plans do not change.
Jorge Lopez, chair of Littler’s immigration and global mobility practice, tied the survey findings to heightened compliance scrutiny affecting legal staffing rather than undocumented hiring, as employers reassess internal processes and oversight.
Jeanine Conley Daves, a Littler shareholder in inclusion, equity, and diversity consulting, highlighted employers analyzing DEI practices for compliance amid federal scrutiny, a posture that can move inclusion programs into more formal governance channels.
Respondents identified a cluster of federal actions as central drivers of the reported disruption. On DEI, they pointed to an executive order eliminating federal DEI programs and directing agencies to combat private-sector DEI initiatives, which employers said prompted reviews of workplace policies, communications and program design.
On immigration, the survey cited executive orders rescinding Biden-era policies, expanding enforcement priorities, ending protections near sensitive locations, targeting sanctuary jurisdictions and imposing enhanced visa vetting. Employers described those actions as likely to create projected delays and costs for employer-sponsored workers, with knock-on effects for business planning.
Other measures referenced by employers included a proclamation imposing a $100,000 H-1B entry fee, surges in worksite raids, and AI-driven “Catch and Revoke” visa crackdowns, steps respondents associated with higher perceived enforcement risk and greater uncertainty in travel and visa status.
The survey also mapped how the same policy environment can translate into different stress points across industries. In technology, employers described global talent pipeline disruptions, with vetting uncertainty and shifting enforcement posture complicating recruiting for specialized roles and extending timelines for hires who require employer sponsorship.
Retail and hospitality companies described heightened sensitivity to enforcement expectations alongside high-turnover staffing realities, as managers balance scheduling needs with compliance demands and respond to perceived increases in worksite scrutiny.
Manufacturing employers reported moderate DEI and immigration impacts compared with some other sectors, but the survey found that more than 40% reported headcount reductions or hiring slowdowns, tying those decisions to uncertainty and compliance cost.
Beyond compliance workload, employers reported broader business retrenchment. The survey found that 35% implemented job cuts and 30% paused hiring amid policy and economic uncertainty, steps that can amplify staffing gaps and increase pressure on remaining teams to cover open roles.
Despite the disruptions, many companies signaled they did not plan to keep rolling back inclusion efforts. Littler found that 45% of employers resisted further DEI rollbacks, framing inclusion, equity, and diversity, which the survey described as IE&D, as tied to talent retention.
Employers also described workplace conflicts that intersect with DEI debates and policy enforcement. The survey found religious accommodation conflicts in 35% of workplaces, an issue respondents said intersected with DEI and drew attention because it was prioritized by the EEOC.
Healthcare, by contrast, showed hiring resilience even as respondents described uneven labor-market pressures elsewhere, offering an example of how sector demand can buffer employers from some staffing volatility even when compliance scrutiny rises.
For HR and legal teams, the survey’s core message was workload and timing. Employers described increased scrutiny driving policy reviews, training updates, documentation needs and internal investigations, with some companies reassessing whether they have enough in-house capacity to manage the volume and pace of changes.
Lopez’s comments about legal staffing underscored that the compliance pressure employers described extends beyond concerns about undocumented hiring, reaching governance, workplace policy and public-facing commitments that can trigger internal reviews and external legal risk.
Immigration-related friction, respondents said, can compound those pressures by adding delays and potential cost increases for employer-sponsored workers as vetting and enforcement posture shifts. Employers described those uncertainties as hard to absorb in fast-moving hiring markets, where delays can mean lost candidates, delayed project starts and additional retention pressure on existing staff.
Taken together, the survey portrayed companies trying to keep hiring and operations steady while managing DEI policy changes, immigration policy changes and staffing challenges as interconnected constraints on workforce planning and compliance capacity.
