The Latest – Government Shutdown, Layoffs, H-1B Defined, and Health Insurance Premiums Skyrocket
Federal News
After a year defined as “no hire, no fire,” where job seekers struggled to find roles but workers enjoyed relative job security, the labor market is now showing signs of a shift. Major companies including Amazon, UPS, and Target have announced large-scale layoffs, driven in part by restructuring and the growing adoption of artificial intelligence. Amazon is cutting 14,000 jobs, UPS has reduced its workforce by 48,000 over the past year, and Target is eliminating more than 1,800 corporate positions.
These cuts come as job growth has already slowed significantly and layoffs have been climbing, with nearly 950,000 job losses recorded this year through September, the highest level since 2020. With federal labor reports paused during the government shutdown, the Federal Reserve will make its next rate decision without current hiring data. Labor experts say these layoffs are a clear signal that the balance in the job market is shifting and that a period of economic adjustment may now be underway.
The government is now in the second-longest shutdown in U.S. history. The Senate has failed 13 times to pass a temporary funding bill that would reopen the government through November 21. As a result, millions of Americans may lose access to food assistance, more federal workers are missing paychecks, and air traffic controllers continue working without pay.
One of the immediate impacts for employers is that E-Verify had gone offline, but now has resumed operations.
Many federal agencies responsible for enforcing workplace laws have paused most of their activities. Department of Labor (DOL’s) shutdown operations plan calls for furloughing approximately 90% of DOL staff, including approximately 75% (504 of the 668) of those working for the Employee Benefit Security Administration.
This means discrimination charge investigations are on hold, mediations are cancelled, and the agency is asking courts to pause pending cases.
Employers should remember that federal employment laws continue to apply during the shutdown. However, agency investigations, enforcement actions, and related litigation will be delayed until operations resume.
NPR’s Deirdre Walsh notes that some Democrats see November 1 as a potential turning point in breaking the current gridlock. That is the start of open enrollment for ACA health coverage, when most states will notify consumers of what their premiums will cost without subsidies.
USCIS has released new guidance on how the $100,000 fee required under the September 21, 2025 Presidential Proclamation applies to H-1B petitions.
Who Must Pay the Fee
The fee applies to employers filing new H-1B petitions on or after 12:01 a.m. ET on September 21, 2025, when:
- The beneficiary is outside the U.S. and does not already hold a valid H-1B visa.
- The employer is requesting consular or port-of-entry notification (including pre-flight inspection), even if the beneficiary is inside the U.S.
Who Is Exempt
The fee does not apply to:
- Beneficiaries who already hold a valid H-1B visa.
- Petitions filed before September 21, 2025.
- Petitions filed on or after September 21, 2025 that request an amendment, change of status, or extension for beneficiaries lawfully in the U.S., including F-1 students moving to H-1B, as long as USCIS approves the change of status.
- If the change of status is not approved, the $100,000 fee will be required.
Payment Requirement
The $100,000 fee must be paid through pay.gov before filing. Proof of payment must be included with the petition. Petitions submitted without proof of payment will be denied.
Premiums for employer-sponsored family health insurance have reached a new high—nearly $27,000 per year, according to a recent Kaiser Family Foundation (KFF) report. The increase is significant enough that many experts say employers should be paying close attention.
KFF’s 2025 Employer Health Benefits Survey, released Oct. 22, found that annual premiums rose 6% this year, bringing the average cost of family coverage to $26,993. This continues the pattern from the last two years, when premiums rose by about 7% annually. These increases also far outpace the general inflation rate of 2.7%.
Workers are contributing a substantial portion of the cost: on average, employees paid $6,850 toward their family coverage, while employers covered the rest. For individuals in plans with a general deductible, the average deductible was $1,886 for single coverage.
Although this year’s jump is notable, analysts caution that 2026 could be even more expensive.
“There is a quiet alarm bell going off,” said KFF President and CEO Drew Altman. “With GLP-1 medications, rising hospital prices, tariffs, and other contributing factors, we expect employer premiums to rise more sharply next year.”
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The information contained in this site is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
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