What HR, Education, and Healthcare Leaders Need Now
The yellow brick road to compliance just got bumpier. A federal shutdown is slowing or pausing core labor and employment functions, while a sweeping H-1 B policy change adds a six-figure fee for new petitions. Together, these pressures are reshaping hiring plans, documentation workloads, and audit readiness across hospitals, school districts, universities, and private employers.
Follow the Facts, Not the Flying Monkeys
Social Security and SSI payments continue on schedule, according to the Social Security Administration’s guidance to advocates, though local offices are operating with reduced services. Agencies central to HR are functioning with sharply limited capacity, which means delays now and significant backlogs later. The safest approach is to ground decisions in official notices and reputable reporting, rather than rumor, and to maintain dated records of every compliance action taken.
When the Wizard Goes Dark: What the Shutdown Changes for HR
E-Verify is offline during the lapse. Employers must still complete Form I-9 for new hires on time and then submit E-Verify checks as soon as the system returns. Keep a dated log of each affected hire so you can clear queued cases promptly once access is restored.
The Equal Employment Opportunity Commission is accepting new charges but has paused most investigations and mediations, which will likely result in a surge of activity when operations resume. The Department of Labor’s Wage and Hour Division has a limited number of staff on duty, which limits enforcement to actual emergencies and freezes most ongoing investigations.
The National Labor Relations Board has paused case handling, elections, and unfair labor practice investigations. Employers should expect automatic extensions followed by a rush of work when funding is restored. Continue internal investigations and preserve evidence now so you are ready for review later.
The Emerald City Shuts Its Gates: Agency by Agency Impacts
Cybersecurity: The Cybersecurity and Infrastructure Security Agency is operating with roughly one-third of its workforce. That reduction places greater responsibility on private organizations to maintain vigilance. Review privileged access, confirm patching and backup schedules, and test your incident response plan.
Healthcare: The Department of Health and Human Services has implemented large-scale furloughs. The shutdown also coincided with the expiration of Medicare’s pandemic-era telehealth flexibilities and the Acute Hospital Care at Home program on October 1. The Centers for Medicare and Medicaid Services has advised providers that pre-pandemic restrictions are back in effect. Claims may be held pending congressional action, but there is no assurance of retroactive reimbursement. Coordinate clinical and revenue-cycle messaging to avoid confusion for patients and clinicians.
K-12 and Higher Education: Most schools can continue drawing on previously awarded Title I and IDEA funds, and student aid processing remains ongoing, but new grant-making and civil rights investigations are paused. The Department of Education is operating with a minimal staff, and Impact Aid payments, which usually arrive at the start of the fiscal year, may be delayed if the shutdown lingers. Communicate clearly with boards and families about what is paused and what continues.
FDA nuance: The Food and Drug Administration can continue some user-fee-funded activities using existing carryover balances; however, it generally cannot accept new applications that require new fee payments. Expect slower reviews and longer response times until full appropriations return.
Lions and Tigers and Fees Oh My: The H1-B Shock and What It Means
The administration has introduced a $100,000 supplemental fee on each new H-1 B petition. Healthcare and education employers are raising alarms about the financial and operational impact. The fee applies to new petitions filed on or after September 21, 2025, and not to extensions or existing H-1B holders. Details could still evolve through rulemaking or litigation, so scenario planning is essential.
Medical groups and hospital associations have urged the administration to exempt healthcare roles, warning that patient access and rural staffing are at risk. School districts that rely on international educators in math, science, bilingual education, and special education are also modeling the budget and hiring impacts. For most districts, the new fee makes global teacher recruitment financially untenable.
Bricking the Yellow Road: What to Do This Week
Document as you go. Complete every I-9 on time and maintain a clear log of hires affected by the E-Verify outage so you can submit checks as soon as the system returns. Pair every policy update with a plain-language internal note, especially for visa holders and clinical teams, so anxiety does not fill the silence.
Map critical dependencies. Identify filings and interactions paused at the EEOC, DOL, NLRB, FDA, and education agencies. Assign owners and list the first actions you will take once funding is restored. In healthcare, decide now whether to hold telehealth claims or accept the risk of nonpayment to preserve continuity of care and document the rationale.
Strengthen cybersecurity. With CISA staffing limited, take extra precautions. Tighten user access, verify that monitoring tools and backup systems are working properly, and review your response plan with key staff.
Triage your H-1B pipeline. Identify roles that remain business-critical despite the new fee. Audit Public Access Files and restricted compliance files for each worker to ensure wages, postings, and documentation are accurate. For education and healthcare employers, engage with industry associations that advocate for targeted exemptions while preparing contingency plans to reduce reliance on new H-1 B hires in the short term.
Plan for the snapback, not the poppy field. Once the shutdown ends, agencies will move quickly to clear backlogs. Cross-train staff, pre-draft responses, and keep a dated log of every compliance decision you make so you can demonstrate good faith during later reviews.
Staying on the Yellow Brick Road: How DynaFile Helps
When government systems stall, strong internal systems keep you steady. DynaFile’s secure cloud document management solution gives HR leaders control and visibility when it matters most. Granular access permissions protect sensitive records, immutable audit trails record who acted and when, and centralized searchable files ensure nothing gets lost in the shuffle. Automated workflows and reminders help your team queue E-Verify cases, monitor visa steps, and stay audit-ready even in uncertain times.
Stay Prepared. Protect Your People.
Visa shifts and government shutdowns are testing every organization’s compliance strategy. DynaFile helps you stay ready with centralized document management, secure access controls, and built-in audit trails that simplify every inspection.
Schedule a DynaFile demo to see how our cloud-based solution keeps your HR team organized, compliant, and confident, regardless of what the future holds.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Organizations should consult qualified counsel for advice specific to their circumstances and jurisdictions.
