Understanding the Proposed Dignity Act of 2025: Key Takeaways for Employers

Understanding the Proposed Dignity Act of 2025: Key Takeaways for Employers

On July 15, 2025, Representatives María Elvira Salazar (R‑FL) and Veronica Escobar (D‑TX) introduced the bipartisan Dignity Act of 2025 (H.R. 4393)—a sweeping immigration reform proposal that combines enhanced border security with structured, earned legal status for certain undocumented immigrants. While this bill has not been enacted and remains under consideration by Congress, it presents several provisions that are relevant to U.S. employers, particularly those with employees who may lack lawful status or are beneficiaries of DACA.

Section 2: Legalization Pathways for Dreamers and Long-Term Undocumented Individuals

Section 2 of the bill establishes two distinct programs: the American Promise Program and the Dignity Program.

The American Promise Program targets undocumented individuals who entered the United States as minors and have resided continuously in the country since at least January 1, 2021. Qualified individuals would be eligible for conditional permanent resident status for a period of up to ten years. During this time, they would be authorized to work and travel, and would be protected from deportation. To transition to lawful permanent residency (i.e., obtain a Green Card), participants would be required to meet one of the following criteria: (1) complete a college or vocational degree; (2) serve honorably in the U.S. military for at least three years; or (3) work legally for at least four years, with 75% of that time spent in authorized employment.

In contrast, the Dignity Program is designed for undocumented individuals who have lived in the United States continuously since before December 31, 2020. Participants in this program would be granted a seven-year period of legal status, with work and travel authorization and protection from deportation. While this program does not provide a direct path to citizenship, participants may later apply for a renewable "Dignity Status" after fulfilling program requirements, or seek permanent residency under other provisions of immigration law if independently eligible.

Participants in the Dignity Program must comply with strict conditions, including passing criminal background checks, remaining current on tax filings, maintaining health insurance, and attending regular check-ins with immigration authorities. They must also pay restitution totaling approximately $7,000 over the seven-year period and contribute a 1% income levy to fund a worker training initiative. At least four of the seven years must be spent in qualifying employment, education, or caregiving roles, subject to limited exemptions.

Section 3: Workforce Development and Immigration System Reform

Section 3 of the Dignity Act addresses modernization of the legal immigration system and funding mechanisms for U.S. workforce development. The bill proposes the creation of an American Worker Fund, financed by fees and levies paid by Dignity Program participants. This fund would support apprenticeships, job training programs, and career development initiatives, with the stated goal of training one U.S. worker for every participant in the Dignity Program.

Additional reforms proposed in this section include:

• Reducing backlogs for family-based immigration categories by capping maximum wait times at ten years.

• Raising the per-country caps on employment-based green cards from 7% to 15%.

• Allowing F-1 student visa holders to pursue permanent residence (i.e., “dual intent” recognition).

• Enhancing agency coordination and funding across USCIS, the Department of Labor, and the Department of State to improve adjudication times and processing efficiency.

The Act also mandates the nationwide implementation of E-Verify for all employers, with phased rollout based on employer size. Employers who fail to comply could face civil penalties, underscoring the need for proactive compliance strategies should the legislation move forward.

Considerations for Employers

Although the Dignity Act remains a proposal and has not been enacted into law, employers should be aware of its potential implications for workforce management and legal compliance. If passed, the Act would create new avenues for certain undocumented individuals to obtain lawful work authorization, potentially increasing workforce stability. It may also impose new obligations on employers with respect to employee verification and recordkeeping.

Employers with workers who may qualify under either the American Promise or Dignity Program should monitor the bill’s progress and seek legal guidance in evaluating potential eligibility scenarios and preparing for future changes. Early preparation could position employers to act swiftly and compliantly should the bill become law.

Conclusion

The Dignity Act of 2025 represents a comprehensive and bipartisan effort to overhaul the U.S. immigration system by pairing rigorous enforcement with opportunities for earned legal status. While the bill faces an uncertain path in Congress, its provisions—if enacted—would significantly impact both undocumented individuals and their employers. Legal practitioners and business leaders are encouraged to remain informed and consult counsel as developments unfold.