What the New H-1B Executive Order Means for Employers and Visa Holders

What the New H-1B Executive Order Means for Employers and Visa Holders

On September 18, 2026, President Trump signed a new Executive Order titled “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program.” The administration’s directive focuses heavily on protecting domestic workers and targeting perceived abuses – such as using the H-1B program to replace U.S. employees following recent or planned layoffs.

Separately, on the same day, President Trump issued a proclamation extending the previously imposed $100,000 H-1B payment requirement through September 21, 2027. However, the payment requirement remains subject to a federal court judgment and litigation remains ongoing.

Here is a breakdown on what this executive order means for employers and applicants.

Key Focus Areas of the Order

  • Layoff Tracking & Scrutiny: Federal agencies (DOL, DHS, DOS) must now factor in whether an employer has executed or plans upcoming layoffs that negatively impact similarly situated U.S. workers when reviewing Labor Condition Applications (LCAs) and visa petitions.
  • LCA Review and Enforcement: Within 30 days, the Department of Labor, through the Wage and Hour Division, must begin reviewing data relating to previously submitted LCAs to determine whether further enforcement action against sponsoring employers is warranted under INA § 212(n)(2)(G).
  • Expanded Interagency Coordination and Data Use: Immigration authorities are now directed to coordinate with the Department of Commerce, Department of Education, and the Small Business Administration to cross-reference wage, industry, and academic data.
  • Third-Party and Outsourcing Models: The EO specifically identifies third-party placement groups and outsourcing firms as areas of concern and directs agencies to increase coordination and scrutiny of H-1B petitions and LCAs. However, it does not impose a categorical ban on third-party placement or outsourcing arrangements.

What the Executive Order Does Not Do

While the Executive Order signals increased enforcement, it is equally important to understand its current limits:

  • No Automatic Layoff-Based Denial: The EO does not establish an automatic rule under which an employer’s recent or planned layoffs result in denial of an H-1B petition. Instead, agencies are directed to take those layoffs into account when evaluating LCAs, petitions, visas, and entry.
  • No New Labor Market Test: It does not establish a specific labor market test or mandatory recruitment process prior to filing. It also does not create a new labor certification process.
  • Unclear Weighting: It does not specify exactly how or to what degree recent layoffs will be weighed against an employer’s petition.

Bottom Line: The EO itself does not establish a new automatic H-1B denial standard or labor-certification process. It does, however, require agencies to consider an employer’s recent or planned layoffs affecting similarly situated U.S. workers, initiate review of previously submitted LCAs, and coordinate across agencies using additional wage, employment, academic, industrial, and economic data. The order also expressly authorizes the agencies to develop implementing rules, policies, and operational guidance.

Actionable Next Steps

For Employers & Corporate Sponsors For H-1B Visa Holders & Professionals
Audit Recent Layoffs: Review layoffs from the preceding 12 months and planned workforce reductions involving similarly situated U.S. workers. Document the business reasons for those decisions and how the H-1B position relates to workforce needs. Validate Credentials: Review foreign degrees, evaluations, and other credentials to confirm they support the specific specialty occupation requirements of the H-1B position.
Review Wage Compliance: Confirm that offered wages satisfy applicable wage requirements and remain consistent with the position, work location, and actual job duties. Maintain Clear Records: Keep organized records of job descriptions, employment history, immigration documents, work locations, and relevant employment changes that may be important during agency review.

 

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