New H-1B Executive Order Targets Employers With Recent Layoffs

On September 18, 2026, President Trump issued a new Executive Order directing federal agencies to increase coordination and enforcement in the H-1B program.

The order does not itself change the H-1B statute or create a new filing requirement.

But it signals more scrutiny for employers, especially companies that have recently conducted layoffs.

Layoffs Will Matter More

The Executive Order directs the Department of Labor, Department of Homeland Security, and Department of State to consider whether an H-1B sponsoring employer:

• conducted layoffs during the previous year; or

• is planning future layoffs

• that negatively affect similarly situated U.S. workers.

This does not mean that a company that had layoffs is automatically prohibited from filing H-1Bs.

The order does not define exactly

• what counts as “similarly situated,”

• what it means to “negatively affect” U.S. workers, or

• how closely an H-1B position must be connected to the positions eliminated in a layoff.

Those details may come through later agency rules, policies, or adjudication guidance.

More Review of Existing H-1B Employers

The order also requires the Department of Labor’s Wage and Hour Division, within 30 days, to begin reviewing data from previously filed LCAs to determine whether further enforcement action may be appropriate.

What Employers Should Do Now

For companies filing H-1Bs after a recent reduction in force, HR should be prepared to clearly explain:

• what positions were eliminated;

• whether those employees performed work similar to the proposed H-1B position;

• why the H-1B position is still needed;

• how the position differs in duties, qualifications, location, reporting structure, or business function; and

• whether the employer remains compliant with H-1B wage and LCA requirements.

Employers using staffing companies, third-party placements, outsourcing arrangements, or offshore delivery models may also receive additional attention because those practices are specifically discussed in the Executive Order.

We still do not know exactly how the government will enforce this order.

One possibility is that USCIS may start issuing new RFEs asking employers about recent or planned layoffs, especially where those layoffs involve roles similar to the H-1B position.