The short version: On September 18, the White House signed a new executive order, and the idea is simple: when H-1B petitions are reviewed from now on, the government will look at whether the company laid off American workers in the past year. Companies that did may face closer scrutiny. There are no implementation details yet: it doesn't say how many layoffs count or how the checks will work. It covers H-1B only, not green cards.
What is this document?
It was signed the same day as the proclamation extending the $100,000 H-1B fee for another year, but it's a separate document:
- The $100,000 one covers new H-1B workers coming from abroad. We wrote about it yesterday: H-1B $100,000 restriction extended another year
- Today's is about company layoffs. It's Executive Order 14431, formally published on September 23
In yesterday's article we said "the proclamation says nothing about layoffs." That's true of the proclamation, but we missed this order signed the same day, and this is where the layoff provisions are. We've added a correction to that article.
What exactly does it say?
In plain terms, three things:
- Layoffs will be considered during review. When approving H-1B petitions, DOL, USCIS and the State Department must take into account "whether the employer sponsor directly or indirectly engaged in layoffs within the previous year or plans future layoffs that negatively affect the employment of similarly situated United States workers."
- DOL will look back at old filings. Within one month (by about October 18), DOL must start reviewing H-1B filings companies have already submitted to see whether any problems need to be addressed.
- Agencies will share data. The Commerce Department, the Education Department and others will provide wage, education and similar data to the reviewing agencies for reference.
Will it affect me?
It depends on your situation:
| Your situation | Impact |
|---|---|
| Your company hasn't had layoffs in the past year | The order targets layoffs, so for now it doesn't seem to have much to do with you |
| Your company has had layoffs and you'll soon extend or change jobs | You may get a few extra questions; talk to the company's lawyer ahead of time |
| Your company has had layoffs and you're traveling abroad for visa stamping | Same as above; confirm before you leave |
| Waiting for a green card (PERM, I-140, I-485) | The order doesn't mention green cards; the visa bulletin is unaffected |
| You were just laid off yourself | First figure out how the 60-day grace period works: H-1B grace period |
Why "may"? Because the text is ambiguous in one place: it says layoffs should be considered at every stage of H-1B review, but it also refers to "aliens entering or attempting to enter the United States as H-1B nonimmigrants." Whether it covers only entry, or also in-country extensions and job changes, nobody can say for sure right now. We'll have to wait for USCIS guidance.
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What counts as a "layoff"? Right now no one can say
The order doesn't define any of these key questions:
- Whether laying off one person counts, or it has to be many
- How "similarly situated" is measured: the same title, the same city, or the whole company
- How "plans future layoffs" will be judged
- Whether layoffs at staffing firms or client companies count
The White House's accompanying fact sheet doesn't explain either. So any claim right now that "companies that had layoffs will be denied across the board" goes beyond what the order says.
Why this order?
It actually started last year. In September 2025, DOL launched an initiative called "Project Firewall," the first time the Secretary of Labor personally ordered investigations of H-1B employers. Companies found to have violations could owe back wages, face fines, or even be barred from using H-1B for a period of time.
This order essentially takes that approach from "investigate after the fact" to "look at it during review."
The order also gives its reasoning: the tech industry laid off 800,000 to 1,300,000 people from 2022 to 2026 while still filing large numbers of H-1B petitions. These are figures the government cites itself; the order doesn't give a source.
Are green cards really unaffected?
The order itself doesn't mention green cards. But be aware that PERM (labor certification) for green cards already has its own layoff rule, and it isn't new: if a company laid off workers in the same kind of job in the same area within 6 months before filing PERM, it must first notify the laid-off US workers and invite them to apply. For where PERM stands overall, see this case study.
Frequently asked questions
My company has had layoffs. Will my H-1B extension be denied? The order only says layoffs should be "take[n] into account" during review. It doesn't say companies with layoffs will be denied. How they'll be considered and how much weight they carry depends on USCIS guidance, which doesn't exist yet.
I'm the one who was laid off, and my new company hasn't had layoffs. Am I affected? The order looks at whether the company filing your petition has had layoffs. If the new company you're moving to hasn't, the order as written doesn't apply. For how to keep your status after a layoff, see the article on the 60-day grace period.
Will DOL's look-back review reach me personally? The review covers Labor Condition Applications (LCAs, the filings in which a company reports an H-1B position and its wage to DOL) that companies have submitted, and any action will be against the company. The order contains no measures aimed at individual employees.
When does this order take effect? It took effect on September 18, the day it was signed, but the agencies haven't issued specific implementation rules yet. DOL's look-back review has to begin by October 18 at the latest.
What should I do now?
- Your company recently had layoffs and you have an H-1B filing coming up: talk to the company's lawyer now; don't wait until you get a Request for Evidence (RFE) to start preparing
- Your company hasn't had layoffs: you don't need to do anything extra
- Waiting for a green card: keep checking the visa bulletin as usual; this order doesn't affect it
- Thinking of changing jobs: you can use our AC21 portability tool to check your situation first
As soon as USCIS or DOL issues guidance, we'll update this article.
Sources: Text of the executive order (Federal Register 2026-19555), White House fact sheet, DOL "Project Firewall" announcement (September 19, 2025), PERM layoff rule, 20 CFR 656.17(k).
This article is based on publicly available government documents. It is for general information only and is not legal advice.