Court Halts TPS Termination for Venezuelans: Relief (and Uncertainty) for Employers

Overview

On March 31, 2025, Federal Judge Edward M. Chen of the Northern District of California issued a stay on the Trump administration’s revocation of Temporary Protected Status (TPS) for Venezuelans in the United States.
The ruling allows approximately 350,000 Venezuelan nationals—who were set to lose TPS status on April 7 and work authorization on April 2—to temporarily retain their status and benefits through April 2, 2026, while legal proceedings continue.
The government is preparing to appeal Judge Chen’s order, and the final outcome will depend on the results of future court decisions.
This decision brings critical relief to employers nationwide, who were facing the sudden loss of workers with minimal notice. By preserving work authorization, the ruling helps stabilize workforces, reduce operational disruptions, and offers a temporary reprieve for both employees and employers during ongoing litigation.

TPS Program Background

TPS is a humanitarian program that allows individuals from certain countries experiencing armed conflict, natural disasters, or other extraordinary conditions to live and work legally in the United States for a limited period. TPS can be granted to eligible nationals of a foreign country and to individuals without nationality who last habitually resided in the designated country. On March 9, 2021, former Secretary of Homeland Security Alejandro Mayorkas designated Venezuela eligible for TPS based on his determination that there were extraordinary and temporary conditions in Venezuela that prevented nationals from returning safely and that permitting these individuals to remain temporarily in the United States was not contrary to the national interest of the United States. On October 3, 2023, former Secretary Mayorkas re-designated Venezuela for TPS, which resulted in two separate and concurrent Venezuela TPS designations. He also consolidated the filing processes so that all eligible Venezuela TPS beneficiaries (2021 and 2023 designations) could obtain TPS until October 2, 2026.

In early February, Secretary of Homeland Security Kristi Noem terminated TPS associated with the 2023 Venezuela designation on April 7, 2025, with employment authorization documents set to expire on April 2, 2025. For additional information, please refer to our previous blog post and the USCIS notice.

Lawsuit

In response to the administration’s decision to terminate TPS for Venezuelan nationals, the National TPS Alliance, along with other organizations, filed a lawsuit challenging the termination. They argued that the review process was deficient and that the ‘national interest’ justification was not allowed under the Immigration and Nationality Act. The case is National TPS Alliance v. Noem, N.D. Cal., No. 3:25-cv-0176612.

Three other lawsuits in the District of Maryland, the District of Massachusetts, and the Eastern District of New York have challenged the TPS terminations on similar grounds. Venezuelans who sued provided significant evidence that TPS holders and their families would suffer irreparable harm if the revocation was allowed to proceed.

Ruling

In his 78-page order, Judge Chen argued that the Secretary made sweeping negative generalizations about Venezuelan TPS beneficiaries, which constituted stereotyping and racism. Specifically, the Judge ruled that “the Secretary’s action threatens to inflict irreparable harm on hundreds of thousands of persons whose lives, families, and livelihoods will be severely disrupted, cost the United States billions in economic activity, and injure public health and safety in communities throughout the United States. At the same time, the order states that the government has failed to identify any real countervailing harm in continuing TPS for Venezuelan beneficiaries.” Additionally, the Judge recognized that the Secretary’s rationale for terminating TPS for Venezuelans was baseless, while the plaintiffs sufficiently demonstrated they were likely to succeed in showing that the actions taken by the administration were “unauthorized by law, arbitrary and capricious, and motivated by unconstitutional animus.”

Next Steps in the Litigation

In response to the order, the government filed (on April 1) an emergency motion to stay the order of postponement pending appeal. The Department of Justice’s Civil Division Office of Immigration Litigation (OIL) attorneys have requested that their motion be ruled upon by 3 pm PDT on April 4, noting that after that time they will seek emergency relief from the Ninth Circuit. If the stay cannot be granted OIL argued the court “should narrow the scope of its order and administratively stay discovery and all other deadlines, so that Defendants may pursue a stay pending appeal before the Ninth Circuit”.

Implications for Affected Employees

While this is an extraordinary decision for the affected Venezuelan beneficiaries, employers continue to ride the rollercoaster, dealing with increasingly difficult operational realities, not knowing what to expect around the next turn. The postponement of the TPS revocation will remain in effect until receiving further direction from the court. Specifically the ruling will have the following impact on Venezuelan Nationals:

Work Authorization: The Venezuelan TPS recipients will continue to have work authorization and protection from removal.
Travel Restrictions: As is typical with TPS, travel outside the U.S. remains restricted unless specific advance parole is granted.
Status Duration: The postponement of the TPS revocation preserves the temporary status and benefits granted to Venezuelan nationals, while the case progresses.

Venezuelan TPS recipients should continue to comply with all TPS requirements, including re-registration for TPS and maintaining employment authorization. We are waiting clarification from the USCIS if the re-registration period for the 2023 group (originally noted as January 17 to September 10, 2025) has been reopened. Those who are affected should stay informed on any updates from the court or DHS that may impact their status.

Implications for Employers

Employers are no longer required to terminate employees whose Employment Authorization Documents (EADs) were set to expire on April 2, 2025. These work authorizations remain valid as the court has basically reset the stage to the pre- Noem announcement. Affected employees are now eligible to extend their work authorization through the following options:

1. Automatic Extension: Venezuelan TPS beneficiaries with the following EAD expiration dates can show their EAD with the notation A12 or C19 under Category and a “Card Expires” date listed below to automatically extend the EAD through April 2, 2026.

September 10, 2025
April 2, 2025
March 10, 2024
September 9, 2022.

Employers should remember that this type of Federal Register Notice (FRN) auto extension does not require the employee to present anything other than the expired EAD, as the notice in the federal register automatically extends the expiring work authorization. There is no further action needed on the employee’s part.

However, employers may wish to consider keeping a copy of the FRN and referencing the case National TPS Alliance v. Noem, Case No. 3:25-cv-01766 (N.D. Ca., filed Feb. 19, 2025) in a collective audit note

2. 540-Day Extension: Certain employees may also qualify for a 540-day extension from the “card expires date” on the EAD, provided they:

Present a current EAD card with an expiration date listed above, and
Provide a Form I-797C (Notice of Action) showing they filed an EAD renewal application during the re-registration period of January 17, 2025, through September 10, 2025

Employers must remember that even if the 540-day extension would normally extend beyond October 2, 2026, no EAD extension may go beyond that date.

The EAD may be eligible for both types of extensions. The employee can choose which extension to use for Form I-9 purposes, when completing a reverification or upon hire at a new job. This guidance reflects the information reinstated that was originally outlined in the January 17, 2025, Federal Register Notice issued under the Biden Administration.

How to Update the Form I-9

Late Wednesday, USCIS provided guidance on how to update or complete Forms I-9 which already display an April 2, 2025 EAD expiration date (some employers updated based on Secretary Noem’s vacatur and some waited), or for new hires:

To complete or update Form I-9 for TPS Venezuela beneficiaries who present an EAD with a Category Code of A12 or C19 and a card with expiration date of September 10, 2025; April 2, 2025; March 10, 2024; or September 9, 2022, employers should enter April 2, 2026 on Form I-9 as the new expiration date of the automatically extended EAD. Employers must reverify these employees before they start work on April 3, 2026.

Employers can find additional information about the extension on the TPS designation for Venezuela page (see screenshot) and instructions for completing Form I-9 on the I-9 Central TPS page. Employers may also wish to contact their Seyfarth attorney for further guidance on any necessary updates and future tracking.

Looking Ahead

The federal court’s blocking of the administration’s attempt to strip Venezuelans of TPS ensures that Venezuelan nationals will retain their TPS protections for now, preventing the termination of their status for the time being. This ruling marks a significant legal development and provides relief for Venezuelan TPS recipients facing uncertainty regarding their immigration status. For employers, this provides temporary relief and continuity in workforce planning, particularly for those employing TPS holders who were at risk of losing status and work authorization this week. At the same time, this situation could quickly change based on the outcome of the appeal. Combined with the recent termination of the CHNV parole process, where employers are eagerly awaiting USCIS guidance describing how to identify affected workers.

Employers should refer to USCIS’s TPS webpage regularly for updates. In addition, the Seyfarth Immigration Compliance and Enforcement team will continue to monitor developments and provide updates.