Executive Order Directs Agencies to Consider Layoffs in H-1B Adjudication

The following article first appeared in the Insights section of Littler Mendelson’s website. It is reposted here with permission.

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On Sept. 18, 2026, President Trump issued Executive Order 14431, Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program, which directs the Departments of Labor, Homeland Security, and State to: 

1. Coordinate and consult with the Departments of Commerce and Education, as well as the Small Business Administration, when processing H-1B petitions, Labor Condition Applications, and H-1B visa applications to ensure compliance with statutory requirements; 
2. Consider whether the sponsoring employer has engaged in layoffs within the previous year or plans to conduct layoffs affecting U.S. workers who are similarly situated to H-1B workers when processing H-1B petitions, LCAs, and H-1B visas.

The executive order instructs the Department of Labor to begin reviewing information related to previously submitted LCAs for H-1B petitions within 30 days of the order to determine if enforcement action against any H-1B sponsoring employers is warranted.

It does not address how compliance will be investigated or enforced.

The executive order also delegates authority to immigration agencies to issue or adopt rules, policies, operational guidance, or other guidance to carry out this order.

The executive order does not prohibit an employer from filing an H-1B petition following layoffs; however, workforce reductions could be scrutinized in connection with the processing of H-1B petitions (including extensions), the issuance of H-1B visa stamps, and upon an H-1B worker’s entry into the U.S¹

Employers that sponsor H-1B workers should be prepared for a potential increase in government investigations and enforcement efforts.

These employers should carefully assess any recent, ongoing, or planned reductions in force as agencies, including the USCIS, may review details for prior layoffs, review publicly available information related to future layoffs, or issue requests for evidence seeking information related to layoffs.

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About the author: Carissa Tyler is senior counsel in Littler’s Washington, D.C. office.