Work Visas

Your Employer Had Layoffs. Does That Put Your H-1B at Risk? What the September 18 Executive Order Says

A September 18 executive order tells three agencies to consider whether an H-1B employer has had layoffs in the past year, or plans them, in every labor condition application, petition, visa and entry. There's no guidance yet on how. Here's what the order actually says, how it differs from the layoff rules already in the law, and what H-1B workers at companies with recent cuts can do now.

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Published Last updated 4 min read

Not legal advice. This article is general information only. It is not legal advice, and it does not create an attorney–client relationship. Do not rely on it to decide what to do in your own case. Immigration rules change, so confirm current requirements at uscis.gov and talk to a licensed immigration attorney or DOJ-accredited representative.

A man working thoughtfully on a laptop at a desk in a busy internet services office.
In this article
  1. What the order says
  2. How this differs from the layoff rules already in the law
  3. What it probably means in practice
  4. If your employer has had layoffs
  5. The same week: the $100,000 payment was extended
  6. Official sources

Tech companies have announced layoffs throughout 2026, and many of them also sponsor H-1B workers. On September 18, President Trump signed an executive order that connects the two. It tells the Departments of Homeland Security, State and Labor to take into account whether an H-1B employer "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."

If you're on an H-1B at a company that has cut jobs, you probably have two questions: does this affect my extension or my next visa stamp, and should I be looking for another sponsor? The honest answer is that the order sets a direction, and the agencies haven't said how they'll apply it. Here's what's known. Facts are current as of September 27, 2026.

What the order says

The order, "Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program," has two operative sections.

Section 2: agencies must coordinate

When processing H-1B petitions, labor condition applications and visas, the Secretaries of State, Labor and Homeland Security must consult with the Secretary of Commerce, the Secretary of Education and the Small Business Administration, which are to provide "wage, employment, academic, industrial, or other economic information."

Section 3: layoffs become a factor

  • Section 3(a) requires the three agencies to take layoffs into account "in any labor condition application, petition, visa, and entry" for H-1B workers. That covers every stage: the employer's filing with the Department of Labor, the USCIS petition, the visa interview abroad, and admission at the border.
  • Section 3(b) gives the Department of Labor 30 days, until about October 18, 2026, to "begin reviewing data related to previously submitted labor condition applications" to decide whether to act against employers under INA 212(n)(2)(G). That provision lets the Secretary of Labor open investigations when there's reasonable cause to believe an employer has violated its H-1B obligations.
  • Section 3(c) delegates authority to the agencies to issue "rules, policies, operational guidance, or other guidance" to carry it out.

The order doesn't define "layoffs," "indirectly" or "similarly situated," doesn't say how much weight layoffs should get, and doesn't say whether it applies to extensions and transfers the same way as new hires. Those details will come, if at all, through agency guidance or rules.

How this differs from the layoff rules already in the law

H-1B law already has layoff provisions, but they're narrower. Under INA 212(n)(1)(E) and (F), employers that are "H-1B dependent" (a large share of their workforce is on H-1Bs) or have been found to be willful violators must attest on their labor condition application that they haven't displaced, and won't displace, a similarly employed U.S. worker within 90 days before or after filing an H-1B petition. They also have to ask about displacement at client sites where H-1B workers are placed.

Most H-1B employers aren't H-1B dependent, so those attestations never applied to them. The executive order reaches every H-1B employer, looks back a full year rather than 90 days, and also considers planned future layoffs.

What it probably means in practice

Until guidance comes out, here's a reasonable reading of the risk, with the caveat that nobody outside the agencies knows yet:

  • More requests for evidence. USCIS may start asking employers with recent reductions in force to explain them: which roles were cut, whether H-1B workers are in similar roles, and why the position still requires a specialty occupation worker.
  • More questions at visa interviews. The order also applies to State Department visa decisions, so consular officers could ask about an employer's layoffs when you go abroad for a new H-1B stamp.
  • Department of Labor investigations of employers. Section 3(b) points at past labor condition applications, which is enforcement against employers, not individual workers. But findings against an employer can affect its future filings.

The order says it must be carried out "consistent with applicable law." It can direct how agencies use their existing discretion, but it doesn't rewrite the statutory H-1B requirements. Expect challenges if the guidance is aggressive.

If your employer has had layoffs

  1. Ask HR or the company's immigration counsel what they plan to file and when. If an extension or amendment is due, filing well ahead of your I-94 end date gives room to answer a request for evidence.
  2. Think twice before international travel that requires a new visa stamp in the next few months. If your employer is in the news for cuts, a consular interview is where new scrutiny could show up first.
  3. Keep records that show your role is distinct. Your job description, your team, and how your position differs from roles that were cut are the kind of facts an employer would use in a response.
  4. Know your options if you're laid off. The 60-day grace period still applies today. DHS has proposed eliminating it, which we explain in our post on the grace period proposal.
  5. If you're changing employers, a new sponsor's own layoff history now matters too. It's a fair question to ask a prospective employer.

The same week: the $100,000 payment was extended

In the same week, a presidential proclamation extended the $100,000 payment on certain new H-1B petitions through September 21, 2027. That payment has been blocked by a federal court, and the litigation is ongoing. We explain where it stands in our guide to H-1B payments and fees. The executive order on layoffs is a separate document and isn't affected by that litigation.

Official sources

Not legal advice. This article is general information only. It is not legal advice, and reading it does not create an attorney–client relationship. Immigration rules and USCIS processes change, so check uscis.gov for current requirements, and speak with a licensed immigration attorney or a DOJ-accredited representative about your own case before you act. StatusPal is independent and is not affiliated with USCIS or the U.S. government.

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