President directs federal agencies to weigh employer layoffs in H-1B visa decisions and review past filings
As of our last check on November 2, 2026, this has been signed by the President. It may need agency action before it affects employers.
We check the Federal Register daily for later actions. We check federal court opinions for rulings on published rules weekly, on Mondays. A ruling can take time to reach us, so not finding one here does not mean there is none.
In short
- What changed
- Executive Order 14431, signed September 18, 2026, directs the Secretaries of State, Labor and Homeland Security to consider an H-1B employer sponsor's recent or planned layoffs that negatively affect similarly situated United States workers. It also directs the Department of Labor to begin reviewing data on past labor condition applications within 30 days of the order.
- Who's affected
- No employer is bound directly. The agency actions it directs concern employers that sponsor or plan to sponsor H-1B workers, and the order singles out third-party placement groups, outsourcing firms and technology sector employers.
- What to do
- This order creates no employer obligation yet. Watch for rules or guidance from the agencies it names, and consider how layoffs in the past year or planned layoffs could weigh on upcoming H-1B filings.
What changed
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From the sourceSec. 2
When processing petitions, labor condition applications, and visas
Also: Sec. 2
the Secretary of Homeland Security shall coordinate and consult with the Secretary of Commerce, the Secretary of Education, and the Administrator of the Small Business Administration
When processing H-1B petitions, labor condition applications and visas, the Secretaries of State, Labor and Homeland Security must coordinate and consult with the Secretary of Commerce, the Secretary of Education and the Administrator of the Small Business Administration to ensure compliance with statutory requirements.
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From the sourceSec. 3(a)
the Secretary of State, the Secretary of Labor, and the Secretary of Homeland Security shall take into account
Also: Sec. 3(a)
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.
In any H-1B labor condition application, petition, visa or entry, the three Secretaries are directed to take into account whether the employer sponsor directly or indirectly engaged in layoffs within the previous year, or plans future layoffs, that negatively affect similarly situated United States workers.
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From the sourceSec. 3(b)
Within 30 days of the date of this order, the Secretary of Labor, through the Administrator of the Wage and Hour Division, shall begin reviewing data related to previously submitted labor condition applications
Also: Sec. 3(b)
to determine whether further action against sponsoring employers is warranted under section 212(n)(2)(G).
Within 30 days of the order, the Secretary of Labor, through the Administrator of the Wage and Hour Division, is to begin reviewing data on previously submitted labor condition applications to decide whether further action against sponsoring employers is warranted.
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From the sourceSec. 3(c)
including the authority to issue or adopt rules, policies, operational guidance, or other guidance to carry out this order.
The order delegates presidential authority to the Secretaries of State, Commerce, Labor and Homeland Security to the extent needed to carry it out, including authority to issue or adopt rules and guidance.
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From the sourceSec. 4(c)
This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States
Also: Sec. 4(b)
This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
The order states that it creates no right or benefit enforceable by any party, and that it is to be implemented consistent with applicable law and subject to available funding.
Who is affected
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From the sourceSec. 2
the Secretary of Homeland Security shall coordinate and consult with the Secretary of Commerce, the Secretary of Education, and the Administrator of the Small Business Administration
The order's directions run to federal agency heads: the Secretaries of State, Labor, Homeland Security, Commerce and Education, and the Administrator of the Small Business Administration.
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Our analysisSec. 3(a)
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.
Employers that sponsor H-1B workers are the ones whose filings the agencies would weigh against layoff history, since the order ties the review to the "employer sponsor".
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Our analysisSec. 3(b)
shall begin reviewing data related to previously submitted labor condition applications
Employers that have already filed labor condition applications may see their past filings included in the Department of Labor's data review.
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Our analysisSec. 1
widely abused by certain employers, third-party placement groups, and outsourcing firms
Also: Sec. 1
technology sector employers have collectively requested H-1B visas for hundreds of thousands of workers
The order's stated concerns focus on third-party placement groups, outsourcing firms and technology sector employers, which suggests these groups may draw the most attention.
What it means in practice
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Our analysisSec. 3(a)
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.
Layoffs in the previous year, or planned layoffs, that affect United States workers in similar roles could count against an employer's H-1B labor condition applications, petitions or visas.
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Our analysisSec. 3(b)
to determine whether further action against sponsoring employers is warranted under section 212(n)(2)(G).
Past labor condition application filings could lead to further Department of Labor action against sponsoring employers, though the order does not describe what that action would be.
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Our analysisSec. 3(c)
including the authority to issue or adopt rules, policies, operational guidance, or other guidance to carry out this order.
Agencies may issue new rules or guidance to carry out the order, which could later create specific requirements for H-1B sponsors.
What to do
Required
This executive order directs federal agencies and creates no employer obligation yet. Watch for the Department of Labor's review of past labor condition application data, how the Departments of State, Labor and Homeland Security apply layoff history in H-1B decisions, and any rules or guidance the agencies issue under the authority the order delegates.
Worth considering
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Our suggestionSec. 3(a)
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.
Consider reviewing layoffs from the past year and any planned layoffs that affect United States workers in roles similar to positions you plan to fill with H-1B workers, before filing new labor condition applications or petitions.
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Our suggestionSec. 3(b)
shall begin reviewing data related to previously submitted labor condition applications
Consider checking that records supporting previously submitted labor condition applications are complete and easy to find, since the Department of Labor is reviewing that data.
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Our suggestionSec. 3(c)
including the authority to issue or adopt rules, policies, operational guidance, or other guidance to carry out this order.
Consider monitoring for rules or guidance from the Departments of State, Commerce, Labor and Homeland Security that carry out this order.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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From what date will the agencies start weighing an employer's layoffs in H-1B decisions?
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What counts as an employer "indirectly" engaging in layoffs, and who are "similarly situated" United States workers?
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Does "within the previous year" mean the 12 months before a filing or the prior calendar year?
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What further action could the Department of Labor take against sponsoring employers after reviewing past labor condition application data?
History
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Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program Source (opens in a new tab)