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H-1BPOLICY BRIEF

H-1B : Employer Layoffs Become Part of Review

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SignedAgencies implementing
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SignedAgencies implementing
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The order tells the State Department (visas), (LCAs) and (H-1B petitions and entry) to use other agencies’ wage, employment and education data to check H-1B cases, and to consider the sponsor’s relevant layoffs from the past year or planned. “Relevant” has three conditions: the employer filing for you, jobs similar to yours, and timing within the past year or already planned. The order focuses on H-1B workers entering or about to enter the U.S. ’s Wage and Hour Division must also start re-checking employers’ past LCAs within 30 days to see whether enforcement is needed.

Who is affected
H-1B applicants, holders and sponsoring employers. Pay most attention if your employer had layoffs in the past year or has announced them, and you have a visa interview or entry coming up.
Keep in mind
Layoffs are one factor in the review, weighed by the agencies and the reviewing officer; H-1B status you already hold stays valid.
Next to watch
Estimated · Date unknown · starts re-checking past LCAs (due to begin by October 18), and agencies issue their implementing documents.

Policy background

00 / BACKGROUND

The President signed the order, Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program, on September 18, 2026; it was published in the on September 23 as 14431. An is the President’s working instruction to federal agencies: they adjust how they operate, but the order itself does not change federal regulations, so it skips the proposal and public-comment steps.

The order has several sections: section 2 calls for agencies to coordinate and share data; section 3 covers layoff review, re-checking LCAs and enforcement; section 4 says everything must be done within existing law and budgets. The specific review standards, document lists and timelines will be set in the agencies’ implementing documents.

Around the same time came two enforcement actions aimed at specific companies. is the labor certification that is the first step of an employment-based green card. At an October 8 White House briefing, a Labor Department official announced a suspension of new and pending applications for named companies including Microsoft and Adobe; other companies’ cases continue as usual. On October 16 the Justice Department (DOJ) announced a settlement with Cloudera: Cloudera must withdraw pending cases that used an inactive recruiting mailbox, and for 24 months from its latest withdrawal it may not file applications (ETA Form 9089) or post job ads.

enforcement, the H-1B review and the #12 reform (1205-AC29) are three separate matters.

Potential impact

01 / IMPACT
OUR TAKE · ANALYSIS

Employer layoffs are now on the H-1B review checklist.

Our view: what the order adds is a factor on the review checklist, without a set outcome. Three things are clear: it looks at the employer filing for you; the jobs cut must be similar to yours; and the timing is the past year or layoffs already announced. How much weight layoffs carry, whether extra documents are needed and whether reviews slow down will be set by the agencies’ implementing documents. Section 3(a) names H-1B workers entering or about to enter the U.S.; how extensions and job changes inside the country treat layoffs will also come from those documents.

What counts as a “relevant layoff”: three conditions

The layoffs agencies must consider have to meet all three conditions. First, they were made by the employer filing this or petition; cuts at a parent, affiliate or client count only as that employer’s “direct or indirect” layoffs. Second, they affected , meaning comparable jobs in duties, qualifications and location, as agencies define it in practice. Third, they happened in the past year or are announced and planned. These conditions decide whether a case falls inside the review scope; once inside, the reviewing officer weighs the whole picture.

Example 1 · Hypothetical

Lin works in data analysis at a Bay Area company that laid off three data analysts at the same level last November. The company is now filing an H-1B petition for Lin, who has a visa interview in October in Shanghai. All three conditions line up: same employer, comparable roles, within the past year. The consular officer is most likely to ask why the position is still needed, how Lin’s duties differ from those of the people let go, and why the company is hiring rather than rehiring. Answers should match the duties in the offer letter and the .

Example 2 · Hypothetical

Lin holds an approved H-1B visa and is sent to secondary inspection on first entry, meaning further questioning in a separate room. The questions at the port are the same: why the position is still needed, how Lin’s duties differ, and how the company recruited before filing. An offer letter, job description or org summary makes them easier to answer. CBP decides on the spot whether to admit, keep inspecting or refuse entry, and relevant layoffs are one factor the officer considers. If something is unclear, Lin can ask the officer to explain the next step.

Example 3 · Hypothetical

If the roles cut were unlike Lin’s, that is the point to make at the window and at the port, backed by recruiting records, headcount changes or team structure. The order asks about relevant layoffs only; cuts at other times or in other kinds of jobs are outside it.

Wages, degrees and jobs get cross-checked

State, and must work with Commerce, Education and the Small Business Administration (SBA), using wage, employment, education and industry data to check filings. We expect more explaining and verifying; degree and wage requirements stay where they are today.

Past LCAs get re-checked

’s Wage and Hour Division must start re-checking employers’ past LCAs within 30 days to see whether action is needed under INA section 212(n)(2)(G). The INA is the Immigration and Nationality Act, and this section lets open its own investigation of an H-1B employer when it has reasonable cause. The review targets employers and looks for enforcement leads; an investigation follows only if it finds one. Approved LCAs and H-1Bs stay valid.

Example 1 · Hypothetical

Chen’s H-1B is approved, and his employer filed several LCAs last year. is now re-checking that employer’s data for enforcement leads. Individual workers come into it only if a problem is found and a separate case is opened; Chen’s approval stays valid.

Example 2 · Hypothetical

If the review leads to a case against the employer, the basis is INA section 212(n)(2)(G) and the target is the employer, not Chen. What Chen should watch is whether publishes results and opens any proceeding against this employer.

Related actions: check whether your employer is named

On October 8 officials announced a suspension for named companies including Microsoft and Adobe; Cloudera’s settlement bars it from new filings and job ads for 24 months from its latest withdrawal. The two differ in scope, so check your employer’s notice and the settlement terms separately. Everyone else’s continues as usual, and existing H-1B status continues too.

Source: Cloudera settlement, paragraph 17; October 8 announcement listed below ↗

Outlook

02 / OUTLOOK

First, watch whether starts its review. More important is whether the agencies’ documents settle two questions: how “similar jobs” are judged, and how much weight layoffs carry. If new regulations follow, we will track them separately.

What happens in each case?

Pick a situation to see what it would mean for you. The three are side-by-side possibilities, in no particular order.

IF THIS HAPPENS A · Agencies act under existing powers

Standards become clearer

Assumption: Agencies publish policies, operational guidance or enforcement explanations.

Potential effects in this scenario
Layoffs, wages and job information get checked more systematically; actual effects depend on the documents.
Signals to watch
State, and documents, and real cases.

These scenarios are our analysis and get updated as new documents come out.

What would change this analysis?
What it is
The President’s working instruction to agencies. Agencies adjust how they review cases; federal regulations stay the same.
Which stages
LCAs, petitions and visas; section 3(a) also names entry.
Which layoffs count
All three: the employer filing for you, jobs similar to yours, within the past year or planned.
Fees
This order covers review and enforcement. The $103,265 surcharge in #02 is a separate proposal.

Progress

03 / Presidential executive order

The President signed the order on September 18, 2026, directing agencies to coordinate and consider relevant layoffs. Agencies are putting it into practice; implementing documents and review standards come next.

Currently waiting for

starting its review of past LCAs, and State, and implementing documents.

In progress · Agency implementation

State, and carry out the coordination and layoff-review instructions within their existing powers. must start re-checking past LCAs within 30 days.

Key dates

04 / TIMELINE
  1. The President signed the order: agencies coordinate, consider relevant layoffs and re-check past LCAs.

  2. Published in the as 14431 (91 FR 60501–60503).

  3. Related action: at a White House press conference, a official announced a suspension of new and pending cases for named companies including Microsoft and Adobe.

  4. DOJ announced the Cloudera settlement: no filings for 24 months from its latest withdrawal.

Sources

05 / SOURCES

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