Last month, the Trump Administration announced plans to end President Obama’s Deferred Action for Childhood Arrivals (“DACA”) program. This change in policy is sure to have a significant impact on employers.
First, a little background on DACA. Beginning in the 1990s, illegal immigration from Central and South America changed. Illegal immigrants used to consist of predominantly working-age men who crossed the border to go to work, then returned at the end of the day. This changed when more and more families crossed illegally to settle permanently in hopes of finding a better life here in the United States. This change meant that millions of children who grew up here but were brought here illegally were vulnerable to deportation due to a choice their parents made for them. It is very difficult to obtain legal status after coming here illegally. So, these millions of childhood arrivals could potentially be forced to return to a country of which they have no recollection without some sort of protection.
In response, President Obama authorized DACA to provide that protection. Immigrants who came to the U.S. before 2007, who were under 15 years old at the time they came and were younger than 31 in 2012 were permitted to apply for DACA protection. To receive protection from deportation, they had to have a nearly spotless criminal record and either be enrolled in high school or have a high school diploma or equivalent. DACA’s protection lasted two years, but could be renewed. In total, roughly 800,000 out of an estimated 1.3 million immigrants have obtained DACA protection. Part of this protection included authorization to work.
With the ending of DACA, employers will bear some of the cost of abiding by new regulations (or lack thereof). Many of the largest employers in the country have hired the so-called Dreamers – individuals working and living under DACA’s protections. Apple’s CEO, Tim Cook, claims they have 250 employed at the tech giant. It is estimated that 91% of Dreamers are employed. So, with DACA gone, roughly 720,000 employees will become ineligible to remain employed overnight. The cost of replacing these employers is staggering. One think tank estimates it will cost employers $6.3 billion in turnover costs.
Fortunately for employers, the Trump administration announced it will delay ending DACA by six months. It is possible that during that time Congress will enact a law affording the same or similar protections allowing those same individuals to remain and stay employed. Therefore, employers do not need to start terminating their Dreamers right away. However, now is the time to create an action plan so that you are prepared if Congress is unable to reach and enact a solution. Employee turnover is costly and disruptive; abrupt and significant turnover is even more so. Smart employers will be prepared.