Now that President Trump’s One Big Beautiful Bill is law, HR departments are scrambling for an understanding of what this sweeping legislation will mean for their daily operations.
Changes are coming that will be both immediate and wide-ranging, affecting everything from immigration compliance and workplace culture to AI governance.
It is time for HR departments to do a reality check. Czepiel explains that “this will lead to an increase in I-9 audits as well as worksite raids in industries such hospitality and manufacturing.” The new law makes E-Verify a nationwide requirement, posing immediate compliance challenges to companies in states which previously did not require it.
A comprehensive overhaul of the onboarding process is required to solve this problem. Companies must now implement real time work authorization verification prior to an employee’s start date, conduct regular Form I-9 Self-Audits in order to catch errors before inspections and train staff extensively about proper documentation procedures. The most important thing for organizations to do is to train and designate authorized representatives who will interact with ICE agents on site visits.
Czepiel says that HR teams who act early are better prepared to deal with what may come. Waiting for enforcement to increase could be costly, and go beyond fines.
Major policy changes have ripple effects that go beyond legal compliance. They fundamentally change workplace dynamics. Brightmine research shows that more than a third of U.S. employees are considering or planning to leave their jobs because of changes in workplace policies. Czepiel says that HR teams cannot afford to be reactive in addressing workplace tensions related to policy changes. “Whether it is political discussions in the breakroom, or anxiety about job security due to changing regulations, HR can’t afford a reactive approach when addressing workplace issues.” Waiting for issues to arise can damage trust, lower employee morale, and lead to the loss of top talent. Czepiel says that silence in these situations can increase fear and uncertainty. It’s important for HR to lead with transparency.
This means having frank discussions about how policy changes may affect hiring strategies, sponsoring opportunities and career advancement pathways throughout the organization. It means advocating for immigration benefits such as visa support and legal aid while ensuring that all employees have equal access to advancement opportunities, regardless of their status.
The main insight: Effective response requires proactive measurements. HR teams can identify brewing problems by conducting pulse surveys that focus on psychological safety and a sense of belonging. Czepiel says, “DEI doesn’t just mean big initiatives. It’s about everyday leadership actions that foster an employee’s sense of belonging.”
While immigration enforcement is the focus of headlines, OBBB’s AI approach creates a new challenge for HR departments. States are filling the regulatory void left by the removal of federal AI provisions from the final bill. This has created a patchwork system that multistate employers have to navigate.
Czepiel suggests that HR teams adopt the “highest standard” strategy — i.e. build policies based upon the most stringent state and local requirements applicable to their organization, and scale them across all operations. This strategy will prevent a constant scramble as new regulations are introduced.
Many people don’t realize how tight the timeline is. California’s new requirements will take effect in October this year. Illinois, Colorado, and Texas will follow in early 2026. Czepiel warns that HR teams can expect other jurisdictions to pass workplace AI laws. This will cause a domino-effect and increase compliance challenges for employers.
The steps to take include immediate AI audits and codes of conduct that will evolve with changing regulations. They also include regular screening for hiring biases and compliance gaps.
It’s interesting that the OBBB requirements for charitable contributions create an opportunity for HR leaders. Erin Pierson of Cause Strategy Partners, the consultancy’s chief growth officer, says that most companies have not yet reached the one percent threshold required for tax breaks for charitable contributions made from pretax profits.
Instead of adding to the burden of compliance, smart people managers can use these requirements to improve both employee development and community impact. Pierson says that by taking a broader view of what constitutes a charity contribution, companies can not only reach and extend beyond the one percent threshold but also maintain valuable and purpose-driven employee experience that drives performance, growth, and retention.
When HR and Corporate Social Responsibilty (CSR), teams come together, magic happens. Leadership development programs that include nonprofit board service or skill-based volunteering can be counted as charitable contributions, while building employee capability. Pierson explains that “Skills based volunteering, and in particular nonprofit board service, are powerful opportunities to expose employees and gain new skills and insights. They can also exercise their corporate skills within vastly different contexts and build confidence and leadership capability.”
All of these changes require significant investments in legal oversight, staff training, policy updates and system upgrades, as well as cross-functional coordination. How can HR leaders ensure they have the resources needed? Czepiel advises HR leaders to quantify risk in order to build a strong case for their business. “What is the cost of noncompliance?” What is the impact of reduced trust in employees or turnover if these employees don’t respond well cultural shifts? “Framing compliance as a legal requirement, and also a company culture policy will help leaders in the organization understand the importance and urgency of resourcing the HR department appropriately,” says Sherry.
A more effective approach focuses on a few key priorities: centralizing all onboarding documents to ensure compliance across jurisdictions; establishing comprehensive AI guidelines and bias screening regularly; and updating employee manuals to reflect the current legal requirements of every operating state.
According to experts, the OBBB is the biggest shift in workplace compliance for years, but not insurmountable. Czepiel says that auditing processes, training staff, and preparing for the future will help ensure a smoother and more cost-effective transition and minimize the risks of costly disruptions and compliance issues in the future.
According to experts, organizations that are able to thrive in this new environment will be those who view these changes as more than just compliance obligations, but also as an opportunity to develop their teams, strengthen their culture and create a more resilient work environment.
