In recent months, a major shift in U.S. immigration policy has sent ripples through the logistics industry. The federal government’s termination of the CHNV parole program, which once allowed individuals from Cuba, Haiti, Nicaragua, and Venezuela to enter and work legally in the U.S., has left employers facing sudden uncertainty.
As of mid-2025, hundreds of thousands of individuals who were once legally authorized to work under CHNV status have lost that authorization. The consequences for warehousing, distribution, and logistics operations are significant, and leaders must act quickly to minimize both compliance risks and workforce disruptions.
A Quick Recap: What Was CHNV?
Introduced in 2023, the CHNV program was a humanitarian parole pathway that allowed up to 30,000 individuals per month from four countries temporary entry into the U.S. with the ability to apply for work authorization.
For many employers, especially in logistics where labor shortages have been persistent, CHNV provided a much-needed stream of motivated, authorized workers to fill both seasonal and long-term positions. That pathway has now closed.
What Changed?
On March 25, 2025, the Department of Homeland Security (DHS) officially revoked the CHNV parole processes, citing national policy concerns. After a series of brief legal challenges, the U.S. Supreme Court cleared the way for DHS to proceed, with termination becoming final on May 30, 2025.
By mid-June, E-Verify, the federal online system employers use to confirm whether new hires are legally authorized to work in the U.S., began issuing termination notices to employers, indicating that affected workers were no longer authorized to work in the U.S. For many, the loss of eligibility was immediate, regardless of the dates printed on their documents.
New Compliance Pressures
For HR and compliance teams, the policy shift created an urgent challenge. According to E-Verify guidance:
- Employers must reverify all affected workers using I-9 Supplement B.
- If a worker cannot present updated, valid documentation, employment must end—even if the individual has been reliable, trained, and previously cleared.
- Failure to comply could expose businesses to serious legal and financial penalties.
The speed of these changes has left many employers scrambling to understand their obligations while trying to preserve stability in their operations.
Operational Pressures
The timing of this disruption could hardly be worse. Many logistics companies are preparing for peak season or working to stabilize high-turnover sites. Losing large segments of the workforce in a short period risk delayed shipments, reduced service levels, and increased costs. Early in the COVID-19 pandemic, labor shortages caused empty store shelves and widespread shipping delays, particularly during busy periods.
Beyond immediate productivity concerns, the sudden reduction in workforce availability highlights just how vulnerable logistics operations can be when dependent on narrow labor pipelines. A 2021-2024 White House report on supply chains noted that underinvestment in resilience has left many systems vulnerable, with workforce shortages capable of creating ripple effects across the economy
Steps Employers Can Take Now
While employers cannot reverse the policy change, they can take proactive steps to limit disruption and build resilience:
- Strengthen Compliance Practices – Conduct thorough reviews of I-9 and E-Verify procedures to ensure compliance is airtight and risks are minimized.
- Plan for Workforce Gaps – Anticipate turnover by developing contingency staffing plans and cross-training existing employees to fill roles.
- Diversify Labor Sources – Reducing reliance on a single labor pathway can help stabilize operations in the face of future policy shifts.
- Leverage Workforce Partners – Some employers are turning to third-party providers with vetted, E-Verified employees to help navigate the changing landscape.
During workforce transitions, some organizations have compliant, ready-to-go labor teams that can step in to help keep operations running smoothly.
Looking Ahead
The end of the CHNV program underlines how quickly external factors can disrupt even the most carefully managed logistics operations. Compliance is only the first step; long-term stability requires proactive planning, workforce diversification, and adaptability.
For logistics leaders, the message is clear: stay vigilant, stay compliant, and be prepared for the unexpected. Policies will continue to evolve, but with the right strategies in place, operations can remain resilient through whatever comes next.
About the author:
Gina Santosusso
Executive VP, Business Operations at Eclipse Advantage
