Trump Signs Executive Order Directing H-1B Adjudications to Consider Layoff Activity and Labor Market Data
Updated: 2 hours ago
WASHINGTON, September 19, 2026 — President Donald Trump signed an Executive Order on September 18 directing the Departments of State, Labor, and Homeland Security to consider whether a sponsoring employer has conducted or plans to conduct layoffs when adjudicating H-1B petitions, visa applications, applications for admission, and H-1B-related Labor Condition Applications (LCAs).
The order also instructs the agencies to consult a broad range of federal economic data — including wage, industry, and employment specialization information — in their consideration of H-1B applications, coordinating with the Departments of Commerce and Education and the Small Business Administration.
What the Executive Order Requires
1. Layoff Activity Becomes an Adjudication Factor
Federal agencies must now consider whether a sponsoring employer has, directly or indirectly, laid off employees within the previous year, or plans future layoffs that would "negatively affect the employment of similarly situated" U.S. workers.
This applies across four stages of the H-1B process:
Application Type | Stage |
Labor Condition Application (LCA) | Pre-filing certification |
H-1B Petition (Form I-129) | USCIS adjudication |
Visa Application | Consular processing abroad |
Application for Admission | Entry at a U.S. port |
Important clarification: The order does not ban employers with layoff histories from filing H-1B petitions, nor does it establish a formal labour market test. It requires agencies to weigh layoff activity as a factor. Implementing guidance is still pending.
2. Expanded Interagency Data Sharing
The order directs State, Labor, and DHS to coordinate with the Departments of Commerce and Education and the Small Business Administration to obtain data on:
Wages
Industry conditions
Employment specialization
Academic and education data
The White House said the measure aims to "improve interagency coordination in the evaluation of H-1B visa applications."
3. DOL Must Review Submitted LCAs Within 30 Days
The order instructs the Department of Labor's Wage and Hour Division to begin reviewing already-submitted LCAs within 30 days to determine whether enforcement action is warranted.
How This Relates to Existing Law
Current law already imposes no-layoff attestation obligations on a narrow class of employers:
Employer Category | Existing Obligation |
H-1B Dependent Employers | Must attest no U.S. worker was laid off and replaced with an H-1B worker in an essentially equivalent job within 90 days before or after filing |
Willful Violators | Same attestation requirements |
These obligations apply to very few employers. The new Executive Order extends layoff consideration to all H-1B sponsoring employers as part of the adjudication analysis.
It remains unclear how agencies will weigh economic data, though this could lead to heightened scrutiny of offered wages, job duties, and job requirements — particularly given USCIS's recent expansion of job requirement disclosures on the H-1B petition.
Background: A Pattern of H-1B Restrictions
This Executive Order is the latest in a series of H-1B tightening measures:
Date | Measure |
September 2025 | $100,000 fee imposed on certain H-1B petitions |
September 2025 | Project Firewall enforcement initiative launched |
February 2026 | H-1B lottery replaced with wage-weighted selection |
September 18, 2026 | This Executive Order; $100,000 fee renewed for one year |
The White House claims that since the 2025 measures took effect, H-1B registrations from the largest IT outsourcing firms have fallen by 92%, and consular processing requests have dropped by roughly 97%.
Impact on Employers and H-1B Workers
Expected Effects
Area | Impact |
Adjudication standards | Stricter scrutiny of H-1B filings |
Requests for Evidence (RFEs) | Expected increase on layoff, wage compliance, and specialty occupation issues |
Enforcement activity | Project Firewall investigations likely to expand, potentially involving subpoenas and criminal referrals |
Approval trends | Likely to favour higher-wage, direct-hire, clearly specialized roles |
Recommended Employer Actions
Review H-1B wage and public access file compliance, including benching and LCA posting rules
Audit PERM recruitment files to ensure they reflect genuine recruitment efforts
Review third-party placement arrangements, as enforcement often targets staffing placements
Establish audit response protocols, including record retention and internal coordination
Key Dates
Date | Event |
September 18, 2026 | Executive Order signed |
September 21, 2026 | $100,000 fee renewal takes effect |
Within 30 days | DOL begins reviewing submitted LCAs |
Read Also
Official Resources
Resource | Link |
White House – Executive Order | |
White House – Fact Sheet | |
DOL – Project Firewall | |
USCIS – H-1B Information | |
Federal Register |
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