CLIENT ALERT: WHITE HOUSE ORDERS ENHANCED

H-1B SCRUTINY, WITH IMMEDIATE FOCUS ON LAYOFFS

On September 18, 2026, the White House issued an Executive Order titled Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program. The Order does not amend the Immigration and Nationality Act, create a new H-1B filing fee, or itself impose a new employer attestation. It does, however, direct the Departments of State, Labor, and Homeland Security to coordinate more broadly with the Departments of Commerce and Education and the Small Business Administration when adjudicating H-1B labor condition applications (LCAs), petitions, visas, and entries. The practical consequence is likely to be increased scrutiny of H-1B employers’ wage practices, business operations, degree requirements, and workforce decisions.


The Order is explicitly framed as an anti-fraud and anti-displacement initiative. It directs the responsible agencies to consider, in connection with any H-1B LCA, petition, visa, or entry decision, whether the sponsoring employer has directly or indirectly engaged in layoffs during the preceding year—or plans future layoffs—that adversely affect similarly situated U.S. workers. The Order does not define “indirectly,” “similarly situated,” or the manner in which a layoff finding will be weighed. Those details will be important subjects for anticipated agency guidance and implementation policies.


The Order also directs the Department of Labor’s Wage and Hour Division to begin, within 30 days of September 18, 2026, reviewing data from previously submitted LCAs to determine whether action against sponsoring employers is warranted under INA § 212(n)(2)(G). That provision permits investigation of possible LCA violations based on certain credible information. Employers should therefore expect a potential increase in data-driven compliance inquiries and enforcement activity involving prior H-1B filings, not solely new cases.


The interagency directive is broad. State, Labor, and Homeland Security are instructed to consult with Commerce, Education, and the Small Business Administration, which are to provide relevant wage, employment, academic, industrial, and other economic information. The Order also delegates authority, as necessary to implement the Order, to issue rules, policies, operational guidance, or other guidance. At present, the Order leaves the operative adjudication and enforcement standards largely to subsequent agency action.


What should an employer do?


For employers, the immediate priority is documentation and consistency. Before filing an H-1B registration, LCA, petition, extension, amendment, or consular-visa case, employers should confirm that the offered position is a genuine specialty occupation; that the stated duties, minimum requirements, worksite, supervision, and salary are accurate and supported; and that the beneficiary’s credentials clearly satisfy the position’s requirements. Employers should also preserve records supporting the wage analysis, the business need for the role, recruitment and organizational decisions, and any workforce reduction that could affect similarly situated U.S. workers.


Employers that have implemented recent or contemplated reductions in force should assess H-1B matters early, particularly where affected employees perform comparable work, are located in the same labor market, or are tied to the same business unit. This review should be coordinated with employment counsel and should account for the company’s LCA public-access-file obligations, material-change analysis, worksite compliance, and any representations made to USCIS or the Department of State. Third-party placement, staffing, and outsourcing models warrant particular attention because the Order specifically identifies such arrangements as an enforcement concern.


Meyner Landis will continue to monitor agency guidance and any new adjudicatory, visa-processing, or enforcement practices issued under the Order. In the meantime, employers should prepare H-1B filings on the expectation that agencies may request more detailed evidence concerning the role, wage, beneficiary qualifications, worksite arrangement, and the employer’s workforce circumstances.


 For further information, please contact:

Anthony F. Siliato | Scott R. Malyk | Stacey A. Simon

Meyner and Landis LLP

One Gateway Center, Suite 2500, Newark, New Jersey 07102

Asiliato@meyner.com | Smalyk@meyner.com | Ssimon@meyner.com

 

 

Disclaimer: The information contained herein is intended only for informational purposes and is not a substitute for legal advice. Further, reading this Client Alert in no way establishes an attorney/client relationship between you and Meyner and Landis LLP. Readers should consult legal counsel for definitive advice regarding the current law and regulations and how those apply to your unique situation within your organization.  


 


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