New H-1B order targets employers with layoffs

2 min read

9/21/2026

New H-1B Order Increases Scrutiny of Employers With Recent Layoffs

A new executive order signed on September 18, 2026, increases scrutiny of H-1B employers that have recently laid off workers or are planning layoffs that could affect similarly situated U.S. employees. The order also calls for greater coordination between federal agencies and directs the Department of Labor to review previously submitted Labor Condition Applications, signaling a broader focus on employer compliance in the H-1B program.

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Recent Layoffs Will Factor Into H-1B Reviews

Under the new order, the Department of Homeland Security, Department of Labor and Department of State must consider whether an H-1B sponsoring employer directly or indirectly conducted layoffs within the previous year.

Agencies must also take into account whether an employer is planning future layoffs that could negatively affect similarly situated U.S. workers. These factors may be considered when agencies handle H-1B Labor Condition Applications, petitions, visas and entry into the United States.

This does not mean that an employer that conducted layoffs will automatically have its H-1B petitions denied. Instead, recent and planned layoffs are now specifically identified as information that federal agencies should consider when reviewing H-1B-related cases.

More Agencies Will Share H-1B Information

The order also expands coordination across the federal government.

The Secretaries of State, Labor and Homeland Security are directed to consult with the Department of Commerce, Department of Education and Small Business Administration. These agencies may provide information about wages, employment conditions, academic qualifications, industries and other economic factors relevant to H-1B compliance.

The White House described the policy as an effort to increase scrutiny in cases where there may be a heightened risk that U.S. workers could be displaced.

DOL Will Review Previously Filed LCAs

Another important part of the order involves Labor Condition Applications, or LCAs.

Within 30 days of September 18, the Department of Labor’s Wage and Hour Division must begin reviewing data associated with previously submitted LCAs to determine whether further action against sponsoring employers may be warranted under existing H-1B law.

That provision makes the policy relevant beyond employers preparing new H-1B filings. Previously submitted employer information may also receive additional scrutiny as the Department of Labor carries out the review.

What This Means for H-1B Workers and International Students

For employers, layoffs and immigration compliance may now be more closely connected. Companies sponsoring H-1B workers may need to pay greater attention to how workforce reductions involving comparable U.S. employees could affect future immigration filings and government review.

For current H-1B workers, the order does not automatically cancel or change existing H-1B status because an employer conducted layoffs. However, employers with recent or planned reductions could face additional scrutiny when petitions or other H-1B matters are reviewed.

International students transitioning from F-1 or OPT to H-1B should also pay attention to their prospective employer’s situation. The order does not create a new eligibility requirement specifically for F-1 or OPT students, but the compliance history and layoff activity of the sponsoring employer may become more relevant during the H-1B process.

Further guidance from DHS, DOL and the State Department will be important for understanding exactly how the new review standards will be applied in practice.