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Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

Client Alert

In his second term, President Donald Trump has issued a series of executive orders that significantly alter the landscape of immigration policy in the United States. What will the impact of those orders look like in our local communities? Below, we summarize these key orders:

  1. Enhanced Vetting of Visa Applicants - This order mandates stricter "enhanced vetting" for all visa applicants, focusing on thorough checks that could delay visa processing and increase scrutiny at entry points.
  2. Termination of Birthright Citizenship - Targeting the 14th Amendment's guarantee of citizenship to those born on U.S. soil, this order seeks to deny citizenship to children of non-citizen parents, effective 30 days post-signing. Legal challenges are expected due to its constitutional implications.
  3. Border Security and National Emergency Declaration - Declares a national emergency at the southern border, allowing for military deployment and the construction of additional barriers, with a focus on immediate removal of undocumented immigrants.
  4. Suspension of U.S. Refugee Admissions Program (USRAP) - Temporarily halts the refugee program from January 27, 2025, with potential for case-by-case admissions at the discretion of DHS and State Department.
  5. Asylum Policy Overhaul - Revokes previous policies allowing asylum seekers entry, reinstates the "Remain in Mexico" policy, and aims to end "catch and release", potentially blocking asylum seekers at the border.
  6. Revocation of Previous Immigration Executive Orders - Repeals numerous Biden-era executive orders on immigration, including those on enforcement priorities, refugee resettlement, and family reunification.
  7. Designation of Cartels as Foreign Terrorist Organizations - Labels certain international cartels as terrorist groups, enabling broader legal actions against members and supporters. 
  8. Trade Policy Review and Immigration - Initiates a review of trade agreements like USMCA, potentially affecting visa statuses like TN, E, and H-1B1 visas. 
  9. End of CBP One App and Parole Programs - Terminates the use of the CBP One app for scheduling asylum appointments and ends categorical parole programs for migrants from select countries. 
  10. Homeland Security Task Forces - Establishes task forces to enhance cooperation between federal, state, and local law enforcement to remove undocumented individuals.

Impact on Small Businesses Owned by Individuals Without Legal Status:

The collective impact of these executive orders could be profound for small businesses owned by individuals without legal status. Here is a brief assessment:

  • Increased Enforcement and Raids: The focus on detention and deportation could lead to fear among undocumented business owners, potentially reducing workforce participation or leading to business closures due to raids or the threat thereof. 
  • Visa Processing Delays: Enhanced vetting could slow down or complicate visa  renewals or applications for employees, affecting business operations, particularly in sectors reliant on foreign labor.
  • Loss of Business Confidence: The uncertainty and fear of deportation might lead to a decrease in entrepreneurial activity among undocumented immigrants, impacting local economies.
  • Legal Status Challenges: The proposed changes to birthright citizenship could affect family stability, potentially influencing business decisions and future planning.

For Ohio, according to the American Immigration Council's data, approximately 8.3% of the state's small businesses are owned by immigrants. While exact numbers for undocumented immigrant business owners are not distinctly tracked, if we estimate based on national proportions (where around 20% of immigrant business owners might be undocumented), Ohio could see significant economic impacts. The Small Business Administration, SBA, indicates, immigrant owners consist of roughly 18% of business owners with employees and almost 23% of business owners without employees. Immigrant-owned businesses are found in every sector of the U.S. economy. Immigrants made up 36.8% of employer businesses in accommodation and food services. Transportation and warehousing had the largest share of immigrant nonemployer business owners at 46%.  

Assuming there are about 100,000 immigrant-owned businesses in Ohio (based on various studies), around 20,000 could be owned by undocumented individuals. These businesses contribute significantly to the state's economy, with an estimated $3.5 billion in income from immigrant entrepreneurship annually, affecting job creation, tax revenue, and local spending.

In 2012, the State of Alabama experimented with at the time, the nation's strictest immigration laws. While those laws were eventually declared unconstitutional by the Court, in the months that followed the laws' passage, the State lost numerous small businesses.  One study predicted the economic impact at the time to be $10.8 billion, or 6.8% of the State's GDP.

This scenario suggests a potential economic downturn for Ohio if business operations are disrupted or if owners leave or cease operations due to immigration enforcement pressures. The exact impact would depend on the implementation and legal outcomes of these executive orders, but the overarching message is clear: small businesses owned by undocumented immigrants are at risk, potentially leading to economic ripple effects in communities across Ohio.

For guidance on how these executive orders may impact your business or immigration status, please contact BMD Member Robert Ratliff at raratliff@bmdllc.com. With over 25 years of trial experience in criminal defense and immigration law, Robert’s unique insights as a former Immigration Judge allow him to offer strategic guidance for clients facing complex immigration challenges.


Florida's Recent Ruling on Arbitration Clauses

Florida’s recent ruling on arbitration clauses provides a crucial distinction in determining whether such clauses are void as against public policy and providers may have the opportunity to include arbitration clauses in their patient consent forms. On March 6, 2024, Florida’s Fourth District Court of Appeals reversed and remanded Florida’s Fifteenth Circuit Court ruling of Piero Palacios v. Sharnice Lawson. The Court of Appeals ruled that the parties’ arbitration agreement did not contradict the Legislature’s intent of Florida’s Medical Malpractice Act (the “MMA”), but rather reflects the parties’ choice to arbitrate claims entirely outside of the MMA’s framework. Therefore, the Court found that the agreement was not void as against public policy.

Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).

Another Transparency Obligation: The FinCEN Beneficial Ownership Information Reporting Requirements

Many physician practices and healthcare businesses are facing a new set of federal transparency requirements that require action now. The U.S. Department of Treasury Financial Crimes Enforcement Network (“FinCEN”) Beneficial Ownership Information Reporting Requirements (the “Rule”), which was promulgated pursuant to the 2021 bipartisan Corporate Transparency Act, is intended to help curb illegal finance and other impermissible activity in the United States.

“In for a Penny, in for a Pound” is No Longer the Case for Florida Lawyers

On April 1, 2024, newly adopted Rule 1.041 to the Florida Rules of Civil Procedures goes into effect which creates a procedure for an attorney to appear in a limited manner in civil proceedings.  Currently, when a Florida attorney appears in a civil proceeding, he or she is reasonable for handling all aspects of the case for their client.  This new rule authorizes an attorney to file a notice limiting the attorney’s appearance to particular proceedings or specified matters prior to any appearance before the court.  For example, an attorney can now appear for the limited purpose of filing and arguing a motion to dismiss.  Once the motion to dismiss is heard by the court, the attorney may file a notice of termination of limited appearance and will have no further obligations in the case.