Immigration Policy Shift: Why More Families May Seek Legal Nanny Placements

Agency Insights by Guy Maddalone

March 2025

The landscape of household employment is shifting due to recent changes in immigration policies and enforcement. According to Littler, it is anticipated that U.S. Immigration and Customs Enforcement (ICE) I-9 audits will increase to 12,000 to 15,000 a year and ICE raids to about 100+ a year. The goal of these audits, raids, and warrants is to detain and remove undocumented workers and certain employees with an outstanding removal order.

With a reduced flow of undocumented immigrants into the country and increased potential for deportation of those already here, the availability of undocumented workers for household positions, including nannies, may be on the decline. This has several important implications for your agency and the families you serve.

Declining Availability of Undocumented Household Workers

Over the years, a significant portion of household workers — including nannies, housekeepers, and caregivers — have been undocumented immigrants. However, with stricter border enforcement and heightened deportation efforts, the number of undocumented individuals available for these roles is diminishing. Families that previously relied on hiring “off-the-books” nannies who are unauthorized to work in the U.S. may now struggle to find these workers. This shift could mean more families will turn to legal hiring practices, creating a greater demand for professional nanny placement services.

Families Becoming More Cautious About Illegal Hiring

Beyond the simple issue of worker availability, families may be increasingly hesitant to hire undocumented workers due to legal risks. Government agencies are stepping up enforcement of employment laws, and families who employ undocumented workers may face fines or other penalties if caught. Additionally, concerns over worker stability — such as the possibility of a nanny being deported (or self-deporting) — may push families toward legally vetted candidates. This presents a strong business opportunity for your agency, as families that might have previously hired independently may now want to ensure compliance with legal requirements.

Since your agency already complies with legal hiring practices and doesn’t place those who are undocumented, you’ll have an opportunity to further establish yourself as a knowledgeable and trusted partner in household staffing, which can lead to growth for your agency.

The Importance of I-9 Compliance and E-Verify

As more families shift towards legal hiring, nanny agencies must emphasize the importance of compliance with employment verification requirements. The Form I-9, required by law, helps confirm a worker’s legal employment eligibility. You can assist families in properly completing and maintaining these forms, ensuring they are protected from potential legal issues.

Additionally, you should consider integrating E-Verify into your vetting process. E-Verify is an online system that cross-references I-9 information with government databases to confirm employment eligibility. While not legally required for household employers in most states, offering this service can be a significant selling point for agencies, reassuring families that they are making lawful hiring decisions.

Conclusion

The tightening of immigration policies is reshaping the household employment sector, reducing the availability of undocumented workers, and prompting families to take a more cautious approach to hiring.

By emphasizing compliance with employment laws, sharing your expertise in legal hiring practices, and offering services like Form I-9 assistance and E-Verify verification, your agency can be an indispensable resource for families seeking employees authorized to work in the U.S.

Due to the potential for increased demand and a smaller pool of candidates, this may also be an opportunity for you to increase your pricing.

Now is the time to promote your commitment to legal hiring practices, educate families on compliance, and seize the opportunity presented by a growing demand for legal household help.

Remember that GTM is here for you and your families as a resource for all things concerning household payroll, human resources, benefits, and insurance. Please don’t hesitate to contact us with questions or to request information.

About Agency Insights

Agency Insights is a monthly article from GTM Founder & CEO Guy Maddalone geared toward owning, managing, and growing nanny and household staffing agencies. Guy is a pioneer in the household employment and relies on his more than 30 years of experience as a business owner and entrepreneur to deliver actionable insights and expert industry analysis for agencies that you can’t find anywhere else.

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