Providing housing to employees in Texas: What risks may affect you

Providing housing to employees may seem like a practical solution, but it carries significant legal risks, especially for employers hiring undocumented workers. A recent case in South Texas demonstrates how offering housing to employees can result in federal harboring charges under 8 U.S. Code § 1324, even without the intent to conceal workers from immigration authorities. Additionally, employers acting as landlords face potential violations of Texas labor laws, which can lead to financial penalties and civil litigation.

Housing or harboring?

A federal judge ruled that the owners of a South Texas bakery could be charged with harboring after a worksite enforcement action led to the apprehension of eight undocumented employees on February 12, 2025. According to federal agents, the business owners knew their employees were undocumented and provided them with housing adjacent to the business. Defense attorneys argued that providing shelter doesn’t necessarily mean the workers were concealed from detection, but the judge ruled there was probable cause to charge the bakery owners under 8 U.S. Code § 1324.