New H-1B executive order makes employers’ layoffs from the past year a factor in review
Executive Order 14431, signed Sept. 18, directs the Labor, Homeland Security and State departments to consider at the LCA, petition, visa and entry stages whether a sponsoring employer laid off — or plans to lay off — similarly situated U.S. workers in the past year. The Labor Department must begin reviewing past LCAs within 30 days.
Key points
- Not an automatic denial, and H-1B eligibility rules are unchanged, but layoff information will weigh more heavily in review and enforcement.
- Evidence agencies may check: state WARN notices, layoff disclosures in PERM applications and media reports.
- The Labor Department’s Wage and Hour Division will review previously filed LCAs under INA 212(n)(2)(G) and may open investigations.
- Context: Amazon, the top recipient of new H-1B approvals in FY2025 (4,644), cut 17,388 jobs in the first eight months of 2026.
- Enforcement: on Oct. 8 the Labor Department suspended PERM green card filings for Microsoft, Adobe and six IT outsourcing firms while investigations proceed. The White House said Microsoft laid off about 6,000 workers while employing about 6,300 on H-1Bs; Microsoft says the two are unrelated.
What the order requires
On Sept. 18, the president signed EO 14431, “Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program.” It directs the State, Labor and Homeland Security departments, when reviewing labor condition applications (LCAs), H-1B petitions, visas and entry, to consider whether the sponsoring employer directly or indirectly conducted layoffs in the previous year, or plans layoffs, that harm similarly situated U.S. workers. The departments are to coordinate with Commerce, Education and the Small Business Administration to compare wage, employment, academic and industry data.
The Labor Department’s Wage and Hour Division must begin reviewing previously submitted LCA data within 30 days to determine whether further enforcement against sponsoring employers is warranted under INA 212(n)(2)(G). The order also authorizes the departments to issue rules and guidance to carry it out.
How this differs from current rules
The Labor Department’s existing non-displacement rules apply only in specific situations, such as to H-1B-dependent employers, and focus on layoffs within 90 days before or after a petition. The new order makes layoffs a consideration for every H-1B employer, looks back a full year and adds planned layoffs. It does not change the statute or regulations, and it does not require denying employers with layoffs; how it works in practice depends on agency guidance.
The numbers behind it
Different measures: fiscal-year approvals versus calendar-year layoffs.
Sources: NFAP analysis of USCIS data; Crunchbase citing Layoffs.fyi. Chart by Hibee.
| Item | Initial H-1B approvals, FY2025 (petitions) | Layoffs, Jan.–Aug. 2026 (people) |
|---|---|---|
| Amazon | 4,644 | 17,388 |
| Meta | 1,555 | 10,400 |
| Microsoft | 1,394 | 4,800 |
According to a National Foundation for American Policy (NFAP) analysis of USCIS data, there were 114,806 approvals for initial H-1B employment in FY2025. Amazon led with 4,644, followed by Meta (1,555), Microsoft (1,394) and Google (1,050). Meanwhile, Crunchbase, citing Layoffs.fyi, counts 17,388 layoffs at Amazon, 10,400 at Meta and 4,800 at Microsoft in the first eight months of 2026. The figures measure different things — approvals in a fiscal year versus people laid off in a calendar year — but they show how many large sponsors the order could reach.
What it means for you
- Employers: review layoffs over the past 12 months and any planned cuts; document how laid-off roles differ from H-1B roles in duties, location and pay; keep LCAs consistent with reality; and prepare for RFEs or Labor Department inquiries.
- Employees: if your employer has had layoffs, allow more time for extensions or transfers and keep records of your role and pay. If you are in the green card process at one of the eight employers whose PERM filings were suspended, check your H-1B six-year limit and I-140 status now.
- The order does not revoke approved petitions, but questions about an employer’s layoffs may also come up at visa interviews and at the border.
Timeline
- EO 14431 signed, alongside the $100,000 extension
- Labor Department suspends PERM filings for Microsoft, Adobe and six other employers
- Deadline for the Labor Department to begin reviewing past LCAs (30 days after signing)
Sources
Wondering what this means for your case?
Hibee’s team can assess it against your status, timeline and employer.
This article reflects public information as of Oct. 15, 2026. It is for general information only and is not legal advice. Hibee is not a law firm; for your specific case, rely on the latest official guidance and a licensed attorney.
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