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Beyond Tariffs: Practical Strategies to Elevate Your U.S. Investment

OCTOBER 2025 | Fisher Phillips

Firm Overview and Services

Fisher Phillips was founded in 1943 and was one of the first U.S. law firms to exclusively represent employers in labor and employment matters. We are one of the largest firms in the field of labor and employment, with more than 600 attorneys in 38 offices nationwide, who are licensed to practice in 47 states and the District of Columbia. We also have approximately 35 attorneys practicing in three offices in Mexico. Our geographic reach enables us to combine international coverage with local insights and responsive service. Furthermore, we have invested in knowledge management resources to help us securely share information about our clients across offices, enabling us to provide clients with seamless and efficient services wherever they have operations or employees. Fisher Phillips and our attorneys are frequently recognized for their work and will provide top-tier service to you. Our firm is nationally ranked by Chambers & Partners, U.S. News – Best Lawyers, The American Lawyer, and BTI. Our attorneys enjoy individual rankings by The Best Lawyers in America, Chambers USA, Super Lawyers, BTI, Martindale-Hubbell, Law 360, The Legal 500, Lawdragon, Benchmark Litigation, Corporate Counsel, Who’s Who Legal, and many others.

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Business Development in the United States

Top 10 US Workplace Surprises Japanese Companies Must Prepare For – and Action Steps to Address Concerns Japanese businesses expanding into the United States often focus on customers, site selection, and supply chains. But the greater shock usually comes from US workplace law. Labor and employment law in the States is decentralized, aggressively enforced, and often counterintuitive to Japanese executives accustomed to centralized and consensus-driven practices. And missteps can quickly escalate into costly litigation or reputational harm. Here are 10 critical employment law differences, each with a real-world example and a practical action item you can take to help ease your organization’s transition. 1. “At-Will” Employment Doesn’t Always Mean You Are Free to Terminate Workers What to Know: Most US workers are employed “at will,” meaning they can be terminated at any time for almost any lawful reason. But exceptions – such as alleged discrimination or retaliation – create frequent lawsuits. Example: In Brown v. Daikin America, a US employee sued his employer in New York claiming race and national origin discrimination after his employment was terminated during a reduction-in-force. He claimed that Japanese employees received preferential treatment over him and that he was fired because he wasn’t Japanese. The appeals court not only allowed his claim to proceed to trial but ruled that the employer’s Japanese parent company could be liable as well. Action Item: Draft offer letters and handbooks confirming that your employees are serving “at-will” while clearly respecting the many legal exceptions that might restrict your ability to fire employees (or at least could create legal risks). 2. The US Has a Patchwork of Federal, State, and Local Rules Across the Country What to Know: Federal law sets the floor, but states and cities add their own rules. And this is true across the country, where traditionally progressive states like California, New York, Massachusetts, and Washington have strict and complex laws, while conservative states like Texas, Florida, North Carolina, and South Carolina are much more flexible for employers. For this reason, compliance in California looks nothing like Texas, just as one example. Example: A Japanese-owned restaurant chain with operations in the US faced a consolidated California class action covering unpaid wages, meal and rest period violations, unreimbursed expenses, and PAGA (Private Attorneys General Act) penalties. In 2023, the company agreed to a $700,000 class settlement to resolve these claims, covering multiple lawsuits coordinated in Los Angeles and Orange County. Action Item: Before selecting the location of your operations, work with your employment counsel to build a compliance “heat map” showing all relevant labor laws in your target jurisdictions. 3. Overtime and Other Wage and Hour Laws Can Create Strict Rules What to Know: Overtime pay – where you are required to compensate workers at 1.5 times their regular pay – generally applies after the employee works 40 hours/week. Only a narrow set of

employees are exempt from these laws, and the rules applying this system are often complex and easily misapplied. Worse still, misclassifying workers as exempt is a top cause of lawsuits. US law also requires compensation for all hours worked. Permitting workers to clean and organize their workplace pre- or post-shift can also lead to costly liability for uncompensated time. Example: The same California case included overtime and wage-statement claims, illustrating how wage/hour issues are fertile ground for class actions. Action Item: Work with your legal counsel to carefully audit job classifications and actual work performance. When in doubt, compensate hourly employees for all hours worked and treat employees as overtime-eligible. 4. Anti-Discrimination Laws Create Legal Obligations What to Know: US law at both the federal and state level protects employees against discrimination on many bases: race, sex, age, disability, religion, sexual orientation, gender identity, and more. In addition, even if the alleged discrimination is meritless, an employer is prohibited from retaliating against (disciplining, suspending, terminating, etc.) the employee for bringing the claim. Example: Mitsuwa Marketplace, a large Japanese market located in New Jersey, paid $250,000 to settle an EEOC case alleging Latino employees were paid less than others for the same work. Action Item: Provide anti-harassment, anti-bias, and prohibited retaliation training to all managers – in English and Japanese – to ensure cultural alignment with US law. 5. Be Aware of Strong Union Rights and Labor Relations Issues What to Know: Employees across the country have rights to organize into workplace unions, and even non-unionized workers are protected by law if they engage in “concerted activity” (such as discussing pay or protesting working conditions). In addition, protected “concerted activity” includes negative speech about the company as long as it addresses the terms and conditions of employment. Even small US worksites (or a portion of a larger worksite) can unionize, so you are never immune from a potential organizing drive. Example: Large Japanese automakers have repeatedly faced union organizing drives in their US plants, especially in the South and Southeastern US. Action Item: Train managers early on legal union-avoidance practices and unfair labor practices. Also, adopt open communication systems to resolve grievances quickly. These could help to forestall unionization efforts. 6. Employees Expect Benefits Offerings – and Are Entitled to Protected Work Leave What to Know: The US has no national paid leave mandate, but a federal law protects workers for taking up to several months of unpaid leave for medical or family caregiving reasons, if certain conditions are met. Moreover, many states and cities require paid sick or family leave. Finally, benefits

like health insurance are expected by US workers and are necessary in order to stay competitive with other employers. Example: Japanese employers in California have had to rapidly adapt to the state’s strict paid sick leave laws, which go well beyond federal standards – and the same is true for many locations across the US. Action Item: Benchmark local competitors and ensure benefits and leave policies satisfy both legal requirements and talent expectations. 7. Compliance With Federal Immigration and Work Authorization Laws are More Critical Than Ever What to Know: The current Trump administration has been aggressively enforcing the nation’s strict immigration laws, so compliance is now more important than ever. All of your employees must be authorized to work in the US. Japanese personnel can enter the US under the Visa Waiver program; however, they cannot perform productive “hands-on” work while there. While there are a variety of mechanisms that would allow you to legally employ foreign national workers in various capacities, sponsoring expatriates from Japan or elsewhere requires careful visa planning. Employers in the US must ensure every employee correctly completes a Form I-9 – or you could risk a workplace audit, enforcement action, or raid. Example: Japanese manufacturers have relied heavily on E-2 and L-1 visas to transfer key staff to US operations – but delays can hinder your expansion plans. Action Item: Begin immigration planning months in advance, aligning visa strategy with site selection and workforce needs. Review our playbook for ICE audits and workplace raids, and take note of the Fisher Phillips Employers’ Rapid Response Team (877-483-7781 or DHSRaid@fisherphillips.com) if you need immediate legal counsel when a raid occurs. 8. Workplace Safety is a Critical Component to Your Compliance Plan What to Know: The Occupational Safety and Health Administration (OSHA) enforces workplace safety standards across industries, and many states have local-level safety agencies that can act even more aggressively. Safety inspectors can arrive at worksites without notice and their inspections can lead to large fines and punishments. Example: In a two-year period between 2022 and 2024, a Japanese-owned manufacturing plant located in Texas received two fines from OSHA totaling over $630,000. The government found that Kyoei Steel LTD failed to properly guard machinery, did not ensure workplace respirators correctly fit workers, and failed to keep workers clear of dangerous loads of material. Action Item: Conduct equipment acceptance safety approvals, facility-wide pre-opening safety audits, and implement OSHA-compliant policies and training.

9. Litigation and Class Action Risks What to Know: The US litigation climate is far more aggressive than Japan’s. Wage/hour and discrimination claims are most common. Class actions – where one or a small group of employees seek to recover damages on behalf of hundreds or thousands of similarly situated workers – are the costliest and can quickly lead to million-dollar liability. Example: The California restaurant case shows how small errors in meal/rest breaks and payroll records can balloon into a class action with major settlement costs. Action Item: Invest in HR compliance systems, work closely with legal counsel, and consider employment practices liability insurance (EPLI) to mitigate risk. 10. Privacy and Data Rules in Employment What to Know: Data privacy rules are notoriously fragmented around the US, with no federal requirement but dozens of strict state laws that all add their own differences and nuances. And to make matters worse, some states (like California and Colorado) are amending their data privacy laws to also regulate HR data, creating compliance traps for unwary employers. Example: The California Consumer Privacy Act (CCPA) is the nation’s strictest law that requires employers to disclose HR data practices, catching many foreign companies off guard. Action Item: Create a written employee data privacy policy tailored to the states where you operate, and train staff on proper data use and storage. Conclusion We will continue to monitor developments related to US workplace law and offer updates as necessary, so make sure you are subscribed to Fisher Phillips’ Insight System to track the most up-to-date information. Please contact your Fisher Phillips attorney, the authors of this Insight, or any attorney in our International Practice Group or in our Tokyo office with any questions.

Site Selection Checklist for Companies Expanding Operations or Entering the US Many companies are accelerating US expansion or entry plans due to favorable policy shifts, rising demand for domestic supply chains, and shifting population dynamics. For example: • Over the past decade, companies have announced nearly $200 billion in investments in electric vehicles (EV) and battery manufacturing facilities. • In the semiconductor sector, 2025 will see around 18 new fabrication construction projects begin across the Americas and Japan; many more are expected to begin production in 2026- 27. • Southern and Southeastern states continue to grow rapidly. Florida has added 900,000 residents since 2023, while North Carolina gained approximately 350,000 in the same period and South Carolina’s population grew by 1.5%. Meanwhile, Texas just won the 2025 Prosperity Cup, awarded by Site Selection magazine, recognizing its top ranking among states in new and expanded facility projects, capital investment, job creation, business and tax climate, and workforce readiness. But the variabilities involved in large scale investment – considering federal, state, and local incentives, shifting demographics, and many other factors – mean that companies need to carefully evaluate if a potential landing site makes strategic, operational, and financial sense. The following checklist will help you assess whether a particular US location is suitable for expansion or entry.

1. Labor and Employment Considerations ____ Will there be sufficient qualified employees to support the new location?

____ Is there information on local occupations as rates of the applicable labor force?

____ What are the educational levels within the hiring pool?

____ What are the trends in the available workforce over the past five or 10 years? Is the labor pool growing or shrinking? ____ What local educational resources are available to help train your workforce now and into the future? ____ Will the local post-secondary educational institutions create or modify educational programs to meet your company’s needs (use of robotics and AI in your operations)? ____ What type of regulatory environment prevails in the proposed location? This can include such areas as safety, workers’ compensation, anti-discrimination, leave management, and unemployment.

____ Is there an existing employer in a similar line of business or with similar business processes (e.g., IT or accounting) that might compete for workers? ____ What’s the outlook for current and future workforce competition? Are local businesses expanding or are new businesses coming into the area resulting in additional competition for workers?

____ What is the unionization environment and history of labor activity?

____ Are there workforce development partnerships (apprenticeships, vocational training, job centers) available?

2. Operational Considerations ____ Are there sufficient crucial suppliers within reasonable travel times? ____ Are there restrictive zoning requirements on the proposed site as well as adjacent properties?

____ How accessible is the proposed location to existing company operations in the region?

____ Can you reach existing and new customers efficiently?

____ Are there existing buildings/offices or greenfield sites available for development?

____ Is there room for future expansion as needed?

____ Will there need to be infrastructure improvements to meet your company’s needs (airports with good connections, road or rail service, port access, and intermodals, etc.)? ____ Will you have access to sufficient levels of gas, electricity, potable water, sewer and waste handling, and emergency services to support your operations?

____ What type of renewable energy sources are available for the site (wind, solar, etc.)?

____ What are the permitting and approval timelines for site development or facility expansion?

____ Are there restrictive regulations on air and wastewater emissions or wetlands mitigation requirements? ____ How reliable are the logistics networks (congestion, weather disruptions, labor strikes at ports, etc.)?

3. Cost and Financial Considerations ____ What is the overall cost of doing business in this location (real estate, utilities, insurance, transportation)?

____ What are the state and local corporate, income, property, and sales tax burdens?

____ Are there property tax abatements, investment tax credits, job tax credits, cash grants, etc., available in the proposed area? ____ Is there a minimum level of investment or job creation needed to obtain incentives? Is there a risk of clawbacks?

____ What are average wage levels and benefits costs compared to other peer markets?

____ What are the hidden or long-term costs (compliance, environmental remediation, local fees)? ____ Does the region offer financial predictability (e.g., stable tax policies, no sudden incentive clawbacks)? 4. Community and Quality of Life Considerations ____ Is the proposed region desirable for workers (i.e., affordable housing, good schools, and recreational opportunities) – especially for those who might transfer from existing operations?

____ What is the availability and affordability of healthcare services?

____ How attractive is the region to new talent (arts, culture, amenities, diversity, climate)?

____ Are there relocation support services for families (spousal employment assistance, international schools, etc.)?

____ What is the community’s track record welcoming and retaining major employers?

5. Risk and Strategic Considerations ____ Is the site vulnerable to natural disasters, severe weather, or the negative impacts of climate change (hurricanes, ice storms, floods, wildfires, sink holes, earthquakes)?

____ How stable is the political, judicial, and regulatory environment?

____ Are there reputational risks associated with locating in the region (litigation climate, environmental controversies)?

____ Does the location align with corporate ESG/sustainability goals?

____ What is the long-term strategic fit? Does the region position the company well for future expansions, shifts in customer demands, or shifts in supply chains?

Conclusion We will continue to monitor developments related to site selection activities and offer updates as necessary, so make sure you are subscribed to Fisher Phillips’ Insight System to keep up with the most up-to-date information. Please contact your Fisher Phillips attorney, the authors of this Insight, or any attorney on our Site Selection and Incentives Team or International Practice Group with any questions.

6 Reasons More Japanese Companies Are Moving to Texas: Your Strategic Guide As Japanese companies expand to the US, many are finding that Texas offers key advantages for long- term growth, particularly in the Dallas and Houston regions. Notably, Texas lawmakers have taken steps in recent years to attract Japanese businesses and strengthen economic relationships. Indeed, the Texas Economic Development Corporation reports that over 400 Japanese companies currently operate in the state, covering a variety of industries including manufacturing, technology, telecommunications, automotive, and logistics. Why has Texas emerged as a hotspot for Japanese investment? Whether you’re establishing your first US location or expanding existing operations, here are the top six reasons Japanese companies are doing business in the Lone Star State. 1. History of Japanese Investment Texas is the second largest state in the US – both by population and GDP – and is also among the 10 largest economies in the world. These statistics demonstrate why Texas is a popular expansion spot for businesses. According to the Texas Economic Development and Tourism Office, Texas received 119 Japanese foreign direct investment (FDI) projects from 2012 to 2022, totaling $6.9 billion in capital investment and creating over 19,000 jobs. Additionally, a 2023 survey from the Japan External Trade Organization (JETRO) revealed that about two-thirds of Japanese businesses already in Texas planned to expand over the next few years. During a visit to Tokyo last year, Texas Governor Greg Abbott signed a statement of mutual cooperation (SMC) with Governor of Aichi Prefecture Hideaki Ohmura. “This agreement will encourage investment, trade, and collaboration in critical areas like medicine, life sciences, biotechnology, energy, innovation, and so much more,” Abbott said. 2. Business-Friendly Laws and Policies Businesses operating in Texas have some advantages to keep their operating costs relatively low. For example, Texas has no state income tax and a more business-friendly tax and regulatory environment than many other major US business hubs. Real estate and labor costs are comparatively more affordable as well. Additionally, the state offers incentive programs through local economic development partnerships, such as property tax abatements, training grants, and sales tax exemptions. 3. The Emerging “Silicon Prairie” In addition to being a hub for aviation, auto, and healthcare, the Dallas-Fort Worth area has recently been dubbed the “Silicon Prairie” due to the large number of tech companies moving to the area. Industry sectors include microchip and semiconductor manufacturing, as well as telecommunications and other IT sectors. Notably, state lawmakers approved the Texas CHIPS Act in 2023, launching the Texas Semiconductor Innovation Fund providing subsidies to chip manufacturers and related research funds to universities. Thus, Japanese tech companies may have some unique incentives to build a Texas presence into their strategic plans. 4. Workforce Availability Texas has one of the largest US labor pools with about 14 million workers in nonagricultural industries and almost a million workers in manufacturing, according to a 2024 Texas Workforce Report. The Dallas–Fort Worth and Houston metro areas, specifically, are the state’s biggest labor markets with about 4 million and 3.5 million workers in each area, respectively, and economic growth rates that

exceed national averages. The state also has a strong university system, as well as workforce training partnerships, providing a highly skilled talent pool for businesses in a range of industries. 5. Strategic Location The infrastructure in Texas offers some logistical advantages, such as direct flights from Tokyo to Dallas- Fort Worth and Houston, deepwater ports on the Gulf Coast in Houston and Freeport, and extensive road and rail networks for North American distribution. Its location also makes Texas an optimal spot for accessing markets in Mexico and Latin America more broadly. 6. Cultural and Community Resources Texas has the fourth largest Japanese population (65k individuals) in the US, according to Pew Research Center. Metro areas such as Dallas and Houston have ample resources to support Japanese nationals relocating to the US, including Japanese language schools and cultural centers. Create Your Action Plan Japanese businesses entering or expanding in Texas should consider taking the following steps: • Explore potential benefits of doing business in the state, including cost savings, as well as logistical and infrastructural advantages. • Work with local economic development partners to identify incentives and other opportunities to give your business a competitive edge in Texas. • Develop a community-resource packet for Japanese nationals relocating to Texas. • Reach out to local university and community colleges to develop a talent pool and explore workforce training programs and incentives. • Engage with experienced legal counsel to build a compliant workforce planning strategy, as well as employment policies and procedures. • Determine logistical needs, including site selection, transportation, and facility requirements. FP’s site selection team has substantial experience helping Japanese companies select R&D and manufacturing sites in the US. Additionally, FP’s global consulting firm, Fisher Worldwide provides an international network of legal and HR consultants who can provide critical support. Conclusion Fisher Phillips can help you navigate US laws and leverage opportunities for expansion in the North American market. We’ll continue to monitor developments and provide the most up-to-date information directly to your inbox, so make sure you are subscribed to Fisher Phillips’ Insight System. If you have questions, contact your Fisher Phillips attorney, the authors of this Insight, or any attorney in our Texas offices or Tokyo office.

Immigra t ion Up date

An Employer’s Playbook For ICE Audits And Workplace Raids Immigration enforcement activity in California and elsewhere has raised tensions at workplaces across the country, with federal officials ratcheting up the pressure – what if your business is next? This Insight will provide you with a detailed playbook: proactive steps to take to minimize the chances that you’ll face an immigration audit or raid, and practical steps to consider should immigration officials arrive at your workplace.  Before We Begin: Know The Risks Employers that commit immigration violations face significant penalties: • Civil Fines : Up to $2,861 per I-9 violation, up to $5,724 for knowingly hiring undocumented workers, and up to $28,619 per worker for repeat offenders. • Criminal Penalties : Business leaders can face up to 10 years in prison and $250,000 in fines for knowingly employing undocumented workers. • Asset Seizure : Conviction may trigger forfeiture of assets and profits linked to the violation. • Loss of Government Contracts : You could be debarred from federal contracting under an Executive Order. • Business Disruptions : ICE raids can bring immediate work stoppages, trigger media attention, and disrupt morale. 뭅뭃뭄뭆 Take Steps To Minimize The Likelihood Of A Raid You’ll want to take proactive steps to minimize the chances that you’ll face ICE enforcement activity. • Establish I-9 Compliance : Ensure every employee hired after November 6, 1986, has a complete and properly filled out Form I-9 on file. Use payroll records to verify that all required forms are on hand. • Conduct Regular I-9 Audits : Regularly auditing I-9 forms is key to identifying and remedying any discrepancies. Working with your FP counsel to conduct periodic, thorough audits will help ensure that your records are accurate and up to date. • Employee Training : Train your managers and HR staff on how to complete I-9 forms, recognize document issues, and take appropriate action if they suspect an employee may lack proper work authorization. • Establish a Rapid Response Plan : Designate a trained “raid team” to handle ICE visits, including contacting immigration and employment counsel, monitoring compliance with warrants, and tracking actions taken by ICE agents. • Run Mock Scenarios: Just like fire drills, conduct simulated audits or raids to train your team to respond calmly and correctly under pressure. • Consider Using E-Verify : Although not mandatory for all employers, using the E-Verify system can bolster compliance and demonstrate due diligence in verifying employee work eligibility – and perhaps even provide you a safe harbor or a ticket to reduced penalties if a violation is found. Work with counsel to determine if this is the right approach for you. 괓괔 Know How To Respond If ICE Initiates An Audit The most common way in which your business might end up interacting with enforcement officials is through an audit. An ICE audit, often initiated through a Notice of Inspection, requires employers to produce I-9 forms and additional records within three days.

• Contact Legal Counsel Immediately : Your legal team can help you audit I-9s, make allowable corrections to minimize penalties and, if necessary, negotiate a short extension for gathering records. They can also work with ICE officials to streamline the audit process to keep ICE agents away from the worksite. • Gather and Verify Documentation : Ensure all requested documents are organized and accurate. Along with I-9 forms, ICE may request payroll records, E-Verify confirmations, ownership information, agreements with staffing companies, and 1099s. • Review Findings and Correct Minor Errors : Once the audit concludes, which could take anywhere between two weeks and several years, ICE will inform you of any issues. The best news you can hope for would be a letter indicating that you are in full compliance. If the agency only finds minor technical or procedural violations, you will be allowed to correct them within 10 business days. • Take Corrective Action Immediately : If ICE identifies serious violations, such as unauthorized workers, you’ll receive a Notice of Suspect Documents. You’ll need to verify or terminate employment of affected individuals promptly. Your counsel can help clarify next steps and negotiate penalties, if applicable. 뢂뢃뢄뢅뢆뢇 Know What To Do If Subjected To An ICE Raid Raids are highly disruptive, often involving immediate inspections and potential detentions. Follow these steps to stay compliant while minimizing operational risks. • Contact the FP Rapid Response Team : Our Employers’ Rapid Response Team (877-483-7781 or DHSRaid@fisherphillips.com) is on call to provide immediate legal counsel when a raid occurs. • Appoint a Trained Liaison: Identify a designated manager from your internal Rapid Response team to calmly interact with ICE officials on-site, equipped with instructions and legal contacts. • Request and Examine the Warrant : Verify the search warrant’s validity, ensuring it is signed by a judge. Immediately provide a copy to your legal counsel. If ICE officials have a search warrant when they arrive, they will take the position that they are entitled to immediate access to your premises and records. There is no three-day period to gather documents. ICE agents will not wait for your attorney to arrive before commencing their search. • Monitor but Don’t Interfere : Assign a representative to observe and document ICE’s actions while maintaining a cooperative stance. Do not obstruct or engage in hostile actions, which could worsen legal outcomes. • Avoid Actions that Could be Construed as Harboring : Instruct managers not to hide employees, shred documents, or provide false information. Employees should be free to speak to ICE agents if questioned but are not required to do so without legal counsel. • Document and Report Seized Property or Records : Track all items and information taken by ICE and share this information with legal counsel immediately. • Manage Public Relations : After a raid, determine whether a public statement is necessary and how best to communicate the event to maintain your business’s reputation. 뭇뭈뭉 Don’t Overlook Labor Law Protections Even in non-union workplaces, immigration enforcement may trigger protected activity – and mishandling employee walkouts or protests could create additional legal risk. • Labor Law May Protect Workers : If employees don’t come to work because they fear a raid might occur, know that certain forms of collective action, including work stoppages, may be protected by the National Labor Relations Act (NLRA) – regardless of whether your workers are

unionized. The NLRA generally comes into play when employees initiate action among coworkers over work-related issues or bring complaints about the workplace to management. These same protections have generally been extended to undocumented workers. • Know The Difference : Employees who choose not to report for duty may be deemed to be collectively refusing to work in protest of the raids, falling under the NLRA’s protection despite your legitimate interest in maintaining normal productivity levels. Conversely, those who confine their protests to broad-based government action unrelated to workplace concerns are generally not afforded such protection. • Educate Your Supervisors : Train managers to engage with employees in a neutral, supportive manner and avoid threatening discipline for legally protected concerted activity. Consider offering options for employees to discuss their concerns and encourage transparent communication to minimize potential work disruptions. Although you can instruct such employees that they will not be paid for time they spend off the job, make sure your managers know not to threaten or discipline anyone for engaging in lawful protests if they decide to walk out. • Rely On Your CBA : Check any relevant collective bargaining agreements (CBAs) for provisions related to mandatory notice requirements when immigration issues arise, and to determine the full scope of information you must provide to your employees. Conclusion If you have any questions about these developments or how they may affect your business, please contact your Fisher Phillips attorney, the author of this Insight, or any member of our Immigration Practice Group. Our Employers’ Rapid Response Team (877-483-7781 or DHSRaid@fisherphillips.com) is on call to provide immediate legal counsel when a raid occurs, assist with documentation and compliance review, and provide post-raid support and strategy assistance. Visit our New Administration Resource Center for Employers to review all our thought leadership and practical resources, and make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information.

Continuous Visa Vetting is Coming: What Employers Need to Know About Expanded Screening of Foreign Nationals The Department of State is planning to expand its oversight of all visa holders in the US, estimated at approximately 55 million foreign nationals, through a system known as “continuous vetting.” The program, announced late last month, will involve ongoing reviews of all foreign nationals for their continued eligibility to stay in the United States and for potential violations of the terms and conditions of their status. The initiative represents a significant shift from periodic, application- based reviews to a model of real-time, continuous monitoring. For employers that rely on foreign talent, this change carries both practical and strategic implications. What do you need to understand about continuous vetting and how can you prepare for its effects? What Does “Continuous Vetting” Entail? The State Department has stated that all US visa holders are now subject to “continuous vetting,” which will focus on whether the individual:

• Overstayed the authorized visa period • Engaged in criminal activity • Made threats to public safety • Has been involved in or provided support to terrorist activity or organizations

To carry this out, the government announced it will draw on a wide range of data sources, including law enforcement databases, immigration records, and potentially other federal and international intelligence-sharing arrangements. This means that information that might previously have surfaced only during a visa renewal or consular interview could now trigger immediate review. What Does This Mean for Visa Holders – and Employers? Violations could result in:

• Visa revocation for individuals outside of the United States • Deportation for those physically present in the United States

In practical terms, a foreign national could face consequences without ever submitting a new application, and often without warning. Because this vetting is ongoing, even long-time employees with previously clean immigration histories may face heightened scrutiny. What Employers Might Expect The State Department’s expanded vetting could ripple across many aspects of workforce management. Employers may encounter: • Increased Requests for Evidence (RFEs): USCIS or consulates may more frequently issue RFEs when records suggest possible inconsistencies. • Delays in adjudications: Even cases filed with premium processing – such as H-1B or L-1 extensions – could stall if security checks are triggered.

• Heightened risks for international travel: Employees traveling abroad could find their visas revoked or delayed if vetting flags concerns, leading to unexpected absences. • Expanded investigations: Certain employees may be subject to deeper security reviews that prolong processing, even if they have lived and worked in the US for many years. What Employers Should Do Employers can mitigate these risks through a few best practices. • Initiate employer-sponsored immigration matters well in advance. File extensions, amendments, and green card applications well in advance to allow time for additional vetting delays. • Prepare employees for travel risks. Advise your visa-dependent workers to expect possible delays or revocations when traveling abroad and to carry thorough documentation of employment and immigration status. • Work with legal counsel to develop best practices and tips for visa-dependent employees traveling internationally, with the goal of identifying risks and encouraging proper completion of visa applications. Conclusion For questions about how these developments may affect your workplace, contact your Fisher Phillips attorney, the authors of this Insight, or any member of our Immigration Practice Group. For emergencies, reach our Employers’ Rapid Response Team at 877-483-7781 or DHSRaid@fisherphillips.com. Make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information.

Manufacturing Essentials

The “One Big Beautiful Bill Act” and Its Impact on US Manufacturing Welcome to this edition of the FP Manufacturing Snapshot, where we take a quick look at a recent significant workplace law development with an emphasis on how it impacts employers in the manufacturing sector. This edition is devoted to the "One Big Beautiful Bill Act" (OBBBA) – and its projected impact on manufacturers. Read on to find out what you need to do as a result of this legislation. Snapshot Look at “The Big Beautiful Bill” The OBBBA, which President Trump signed into law on July 4, is a comprehensive federal statute that will reshape key areas across the economy. The OBBBA includes tax code changes designed to encourage investment in US facilities and equipment. It also introduced significant changes to border and immigration enforcement, which is expected to have a major impact on the labor market. This Snapshot will focus on the aspects most relevant to manufacturing industry employers, but for a deeper dive, you can read our full Insight. The OBBBA's most direct impact on manufacturing involves tariffs and tax incentives aimed at "reshoring" production, which we’ll discuss in more detail below. 4 Key Points for Manufacturers 1. Tax Incentives: The new bill includes a significant tax break that applies to investments in machinery and equipment integral to manufacturing processes and certain plant modernization efforts. Manufacturers who are planning to expand their domestic footprint or upgrade their lines in the next few years should review these provisions carefully, as they could dramatically reduce the after-tax cost of these capital expenditures.  2. Tariffs: Conversely, the bill's tariffs on imported goods – including steel, aluminum, and other common components used in domestic manufacturing operations – could increase costs for domestic producers that rely on global supply chains. Manufacturers should review sourcing strategies and be prepared for potential price volatility. 3. Immigration Enforcement: The legislation includes a major increase in funding for immigration and border enforcement. For manufacturers, particularly those that have historically relied on a foreign-born workforce, this could make talent acquisition and employee retention more difficult. It may also prompt a review of internal compliance standards, as well as employee handbooks and policies, to ensure everything is up to date and staff is following appropriate procedures. 4. Contract Review: Manufacturers should also be mindful of the OBBBA's potential impact on contracts, as new tariffs and trade policies could compel renegotiations with foreign suppliers and partners.

Conclusion Manufacturers should understand the full scope of the OBBBA's changes and consult with legal counsel to ensure you are prepared. We will continue monitoring workplace law developments as they apply to the OBBBA, so make sure you are subscribed to Fisher Phillips’ Insight System to have the most up-to-date information sent directly to your inbox. If you have questions, contact your Fisher Phillips attorney, the author of this Insight, or any attorney on our Manufacturing Industry Team.

7 Essential Elements of a Workplace Investigation for Manufacturers Welcome to this edition of the FP Snapshot on Manufacturing, where we take a quick look at a significant workplace law issues that can impact manufacturers. This edition will focus on workplace investigations and how manufacturers in particular can conduct effective investigations that do not expose you to legal liability. Snapshot Look at Workplace Investigations Many issues that arise in the workplace require employers to conduct a prompt and thorough investigation. Among other things, employers may investigate allegations of theft, fraud, harassment, discrimination, retaliation, damage to property, workplace violence or threats, substance abuse, security breaches, inappropriate use of the employer’s computers or other property, or other types of employee misconduct. Manufacturer Focus: Manufacturers have some specific issues that tend to arise more frequently: conflicts between employees on the production floor, reports of bullying that could border on unlawful harassment, workplace accidents, and – especially in the hotter months – physical threats between staff. Why Should You Care? At a minimum, if you botch the investigation, you will not be able to defend a termination. Depending on the circumstances, it may get even worse. One employer in Georgia botched an investigation and ended up being hit with a verdict of $2.2 Million in damages to two employees in a discrimination case. More recently, another employer was hit with a judgment for $325,000 in compensatory damages after a terminated employee sued for malicious prosecution. Manufacturer Focus: As manufacturers, there is a heightened need for proper investigations given the recent increased scrutiny by governmental agencies (like EEOC and OSHA) when they receive complaints or reports from manufacturing employees of noncompliance (such as failure to remedy alleged harassment on the floor or alleged safety hazards). How Do You Make Sure Your Investigation is Defensible? Below are seven essential elements of an investigation that can help to ensure that the investigation will be effective and not expose you to liability. 1. Policies and Procedures Written policies are necessary to maintain order in the workplace and to protect people and property. Ideally, you can avoid or minimize employee misconduct, and any related investigations, by clearly communicating expectations to employees. But, when there are allegations of misconduct, your policies also set the standard to which employee misconduct can be compared when an investigation is warranted. Having adequate written policies and procedures is an essential foundation for any downstream investigations.

Manufacturer Focus: Your policies and procedures need to address industry-specific risks such as machine safety, lockout/tagout procedures, and hazardous materials handling. Additionally, clear protocols for addressing workplace injuries, equipment malfunctions, and production floor conflicts are crucial. Tailor your policies to reflect the unique safety and operational standards of your facility. 2. Hotlines Or Complaint Procedures Some employers maintain “hotlines” for reporting of suspected misconduct. These channels of communication give early warning to employers of a problem and can be very helpful. You should at least maintain robust and well-communicated problem-solving or grievance procedures. Typically, employers should have one problem-solving procedure that follows the chain of command for operational issues or complaints and another more direct procedure for dealing with issues that may lead to employer liability, such as harassment or discrimination. Once issues or concerns are reported through these channels, you should spring into action with an investigation that is appropriate for the nature of the issue or concern. Manufacturer Focus : Consider implementing specialized reporting mechanisms for workplace safety concerns, such as anonymous safety hotlines or digital platforms for reporting hazards. Given the physical risks in a manufacturing setting, your complaint procedures should ensure that safety issues are immediately escalated to prevent accidents. Frequent reminders of these resources, especially to line workers, can reduce the risk of unreported hazards. 3. Credible Fact-Finders Upon receiving information that misconduct may have occurred, you must identify a person or team of people to lead the investigation and to make any decisions that may result from the investigation. These people will interview witnesses, gather evidence, and ultimately make decisions. They must be unbiased, impartial, rational, and objective. Since these people may be called as witnesses in any resulting legal proceedings, they should be beyond reproach. Manufacturer Focus: Depending on the situation, it might be beneficial to appoint fact-finders with experience in industrial environments or knowledge of production processes. They would be in a better position to assess any technical aspects that arise, such as whether safety protocols were followed or if a machine malfunction was involved. A fact-finder who understands the industry could also have more credibility when defending the investigation’s outcome. 4. Witness Interviews The next step in the investigation will usually be to interview any people that may have first-hand information relevant to the issue. You must be careful to avoid relying on hearsay. If there is a complaint, usually the complaining party will be among the first to be interviewed. This initial interview helps to define the scope of the allegations and will help to shape the investigation. In addition to the complaining party, you will need to interview managers, witnesses, human resource professionals and others with information relevant to the investigation. You should be careful not to bog down the investigation by taking copious notes or even affidavits at the beginning of an investigation. Your early focus should be on understanding the issues and facts, identifying next

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