As of October 21, 2026, the H-1B executive order on layoffs, Executive Order 14431, is in force as a set of instructions to federal agencies, not as a new rule you can read in the regulations. Signed on September 18, 2026, it tells the Departments of State, Labor and Homeland Security to take into account whether an H-1B sponsor laid off similarly situated US workers in the previous year, or plans to (Executive Order 14431, 91 FR 60501). No agency has yet published guidance on how that factor will be applied (USCIS, H-1B Specialty Occupations).
The order was published in the Federal Register on September 23, 2026, at pages 60501 to 60503, as FR Doc. 2026-19555 (Federal Register, Vol. 91, No. 183). Its full title is "Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program" (Executive Order 14431, 91 FR 60501). The White House posted the text on the signing date, September 18, 2026 (The White House, Executive Order of September 18, 2026). The same day, the President signed Proclamation 11069, which extends the $100,000 H-1B payment restriction to September 21, 2027 (Proclamation 11069, 91 FR 60497). That payment is a separate measure, covered in our October update on the H-1B $100,000 fee.
- Executive Order 14431 was signed on September 18, 2026 and published at 91 FR 60501 on September 23, 2026 (FR Doc. 2026-19555).
- It directs the Secretaries of State, Labor and Homeland Security to take into account a sponsor's layoffs within the previous year, and planned layoffs, that affect similarly situated US workers.
- The layoff factor covers the labor condition application, the H-1B petition, the visa and entry to the United States.
- The Labor Department's Wage and Hour Division had to begin reviewing data on previously submitted LCAs within 30 days, that is, by October 18, 2026.
- The order does not define "indirectly" or "similarly situated" and does not say layoffs require a denial.
- As of October 21, 2026, USCIS, the Labor Department and the State Department had not published implementing guidance.
What does the H-1B layoff executive order actually say?
The operative instruction is in Section 3(a). It covers every stage of the H-1B process, from the Labor Department filing to the border:
"the Secretary of State, the Secretary of Labor, and the Secretary of Homeland Security shall take into account in any labor condition application, petition, visa, and entry of aliens [...] 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." Executive Order 14431, Sec. 3(a), 91 FR 60502
In plain terms, four decisions are in scope: the labor condition application (LCA) filed with the Labor Department, the H-1B petition, the visa, and entry to the United States (Executive Order 14431, Sec. 3(a)).
The order does three other things. Section 2 tells State, Labor and Homeland Security to coordinate with the Secretary of Commerce, the Secretary of Education and the Administrator of the Small Business Administration, who are to provide "wage, employment, academic, industrial, or other economic information" (Executive Order 14431, Sec. 2). Section 3(b) starts a Labor Department review of past LCAs, discussed below. Section 3(c) delegates the President's authority under INA section 215(a) to the Secretaries of State, Commerce, Labor and Homeland Security, including authority "to issue or adopt rules, policies, operational guidance, or other guidance to carry out this order" (Executive Order 14431, Sec. 3(c)).
The stated rationale is displacement. Section 1 asserts that technology employers laid off "somewhere between 800,000 to 1.3 million American employees from 2022 through 2026" while requesting H-1B visas for hundreds of thousands of workers (Executive Order 14431, Sec. 1). That figure is the administration's own estimate as stated in the order.
Does a layoff mean an automatic H-1B denial?
No. The order says agencies "shall take into account" layoffs; it does not say a layoff requires a denial, and it does not set a threshold (Executive Order 14431, Sec. 3(a)). It also states that it "shall be implemented consistent with applicable law" and creates no enforceable right or benefit (Executive Order 14431, Sec. 4(b) and (c)).
That matters because the H-1B statute itself has not changed. For the LCA in particular, the law limits what the Labor Department does at the filing stage:
"The Secretary of Labor shall review such an application only for completeness and obvious inaccuracies." INA 212(n)(1), 8 U.S.C. 1182(n)(1)
The same provision says that, unless the application is incomplete or obviously inaccurate, the Labor Department "shall provide the certification" within 7 days (8 U.S.C. 1182(n)(1)). How the Labor Department will "take into account" layoffs at that stage without new rulemaking or a revised LCA form is one of the open questions. The order's own wording ties the layoff factor to existing statutory sections, including 212(n) and 214(i) (Executive Order 14431, Sec. 3(a)).
How is this different from the existing H-1B layoff rules?
H-1B law already had a layoff rule, but a narrow one. Only H-1B-dependent employers and employers found to be willful violators must attest that they did not and will not displace a US worker "within the period beginning 90 days before and ending 90 days after the date of filing" of a petition (8 U.S.C. 1182(n)(1)(E); 20 CFR 655.738(c)). Even for those employers, the obligation does not apply to LCAs used only for "exempt" workers, meaning workers paid at least $60,000 a year or holding a master's or higher degree in a related specialty (20 CFR 655.737(b)).
The statute also defines the terms. An employer "displaces" a US worker if it lays the worker off from a job that is "essentially the equivalent" of the H-1B job, and "lays off" excludes discharge for inadequate performance, violation of workplace rules or other cause, voluntary departure or retirement, and the expiration of a grant or contract (8 U.S.C. 1182(n)(4)).
| Point | Existing nondisplacement rule | Executive Order 14431 |
|---|---|---|
| Who it covers | H-1B-dependent employers and willful violators only | Any "employer sponsor" |
| Time window | 90 days before to 90 days after the petition filing | Layoffs "within the previous year" and planned future layoffs |
| Exempt workers | $60,000+ or related master's degree are carved out | No carve-out mentioned |
| Key terms | "Displace" and "lays off" defined in statute | "Indirectly" and "similarly situated" not defined |
| Effect | Breaching it violates the LCA attestation | A factor agencies "take into account" |
Sources: 8 U.S.C. 1182(n); 20 CFR 655.737; 20 CFR 655.738; Executive Order 14431.
Has the Labor Department started reviewing LCAs?
The order set a clock for the Wage and Hour Division:
"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 to determine whether further action against sponsoring employers is warranted under section 212(n)(2)(G)." Executive Order 14431, Sec. 3(b), 91 FR 60502
Thirty days from September 18, 2026 was October 18, 2026. As of October 21, 2026, the Labor Department's H-1B program page did not mention the order or announce the review (DOL Wage and Hour Division, H-1B Program). We found no public statement on what data is being reviewed or which employers are in scope.
The provision the order cites, INA 212(n)(2)(G), lets the Secretary of Labor open an investigation when there is "reasonable cause to believe that the employer is not in compliance," and requires the Secretary to "personally certify that reasonable cause exists" for that type of investigation (8 U.S.C. 1182(n)(2)(G)(i)). The Labor Department has already been using its enforcement tools: its Project Firewall initiative, launched on September 19, 2025, prioritizes investigations "where there are signs of displacements," and remedies include back wages, civil money penalties and debarment of at least one year (DOL, Project Firewall). For a separate Labor Department action on green card sponsorship, see our explainer on what the PERM suspension means for workers.
Where do things stand on October 21, 2026?
| Item | Document | Status on October 21, 2026 |
|---|---|---|
| Layoff factor for LCAs, petitions, visas and entry | EO 14431, Sec. 3(a), 91 FR 60501 | Signed and published; directs agencies; no implementing guidance |
| Labor Department review of past LCAs | EO 14431, Sec. 3(b) | Due to begin by October 18, 2026; no public announcement found |
| USCIS adjudication guidance | None published | USCIS H-1B page (updated 09/21/2026) does not mention the order |
| State Department consular guidance | None found | No public guidance found |
| $100,000 payment extension | Proclamation 11069, 91 FR 60497 | Signed; extends the payment restriction to September 21, 2027 |
Sources: Executive Order 14431; USCIS, H-1B Specialty Occupations; DOL, H-1B Program; Proclamation 11069.
Does EO 14431 affect H-1B extensions and transfers?
On its face, yes. Section 3(a) applies to "any" petition, without limiting itself to new or cap-subject cases (Executive Order 14431, Sec. 3(a)). That covers several common situations:
- Extension with the same employer. If your employer cut similar roles in the past year, the layoff history belongs to the sponsor filing your extension. Separately, on October 14, 2026 USCIS proposed removing 8 CFR 214.1(c)(5), the rule that generally gives deference to a prior approval involving the same facts on extensions, with comments due November 13, 2026 (DHS, Removing Deference to Prior USCIS Determinations of Eligibility, FR Doc. 2026-20941). Our post on the USCIS extension deference proposal explains it.
- Transfer to a new employer. The order points to the layoffs of the "employer sponsor" filing the petition (Executive Order 14431, Sec. 3(a)), so on its wording the new employer's layoff history, not your old employer's, is the one in question.
- Visa stamping abroad and re-entry. The order also reaches the visa decision and entry, so a consular officer or border officer could in principle ask about the sponsor's layoffs (Executive Order 14431, Sec. 3(a)). As of October 21, 2026, we found no published State Department guidance on how this will work.
The word "indirectly" is not defined in the order (Executive Order 14431). Whether it could reach layoffs at a client site where an H-1B worker is placed, or at an affiliate, is a question to raise with your attorney before filing.
What this means for you
If you are on an H-1B and your employer has had layoffs, nothing in the order cancels your current approval or status. The practical risk is on the next filing: an extension, an amendment, a transfer or a visa appointment, where an officer may now ask about the sponsor's layoffs. If you are the one laid off, the separate grace period rules apply: USCIS says you may have up to 60 consecutive days, or until the end of your authorized validity period if shorter, to find new employment, change status or depart (USCIS, H-1B Specialty Occupations). DHS proposed eliminating that discretionary grace period on September 11, 2026, with comments due November 10, 2026 (DHS, Eliminating the Discretionary 60-Day Grace Period, 91 FR 57807), explained in our post on the proposal to end the 60-day grace period.
- Ask your employer whether it has had layoffs in the past 12 months in roles similar to yours, or has announced future ones.
- Ask your attorney how your duties, team and location differ from any eliminated positions, and keep a current job description.
- Keep your own copies of your approval notices, LCA and recent pay statements.
- If you are changing employers, ask the new employer the same layoff question before you resign.
- Allow extra time for an extension in case of a request for evidence.
- Check USCIS and Labor Department pages for guidance before filing; the rules here are likely to be filled in by agency action.
If your long-term plan depends on one employer, it is also worth asking your attorney about green card routes that do not require a sponsor. And once an adjustment of status application has been pending 180 days or more, the underlying immigrant petition can stay valid for a new job in the same or a similar occupational classification (8 U.S.C. 1154(j)), which our guide to AC21 job portability explains.
Where to start
Start with our free evaluation to see whether a self-petitioned route such as EB-1A, EB-2 NIW or O-1 could reduce your reliance on one sponsor. If you are missing criteria, Frank, our AI assistant, finds real opportunities to build them. Petitions are reviewed and filed by our partner law firm, Lai & Turner.
Sources
All checked October 21, 2026.
- Executive Order 14431, Enhancing Program Integrity and Interagency Coordination in the Administration of the H-1B Nonimmigrant Visa Program, 91 FR 60501, FR Doc. 2026-19555 (signed September 18, 2026; published September 23, 2026). Full text, including Sections 1 to 4.
- The White House, Executive Order of September 18, 2026 (September 18, 2026). Signing date; note the page title repeats the words "and Integrity" in error, so the title above follows the Federal Register.
- Proclamation 11069, Restriction on Entry of Certain Nonimmigrant Workers, 91 FR 60497 (September 18, 2026). Extension of the $100,000 payment restriction to September 21, 2027.
- 8 U.S.C. 1182 (INA 212), 2024 edition. LCA review standard, nondisplacement attestation, definitions of "displace" and "lays off," and Secretary-initiated investigations.
- 20 CFR 655.737 (2025 edition). Definition of "exempt" H-1B workers.
- 20 CFR 655.738 (2025 edition). Nondisplacement obligations and the 90-day window.
- 8 U.S.C. 1154 (INA 204), 2024 edition. Section 1154(j) job portability after 180 days.
- DHS, Eliminating the Discretionary 60-Day Grace Period, 91 FR 57807, FR Doc. 2026-18631 (proposed rule, September 11, 2026). Proposal and comment deadline.
- DHS, Removing Deference to Prior USCIS Determinations of Eligibility, FR Doc. 2026-20941 (proposed rule, October 14, 2026). Proposal to remove 8 CFR 214.1(c)(5) and comment deadline.
- USCIS, H-1B Specialty Occupations (last updated 09/21/2026). No guidance on the order; 60-day grace period description.
- DOL Wage and Hour Division, H-1B Program. No announcement of the LCA review.
- DOL Wage and Hour Division, Project Firewall. Launch date, displacement priority and remedies.
Frequently asked questions
Does Executive Order 14431 ban H-1B petitions from companies that had layoffs?
No. Executive Order 14431 tells the Departments of State, Labor and Homeland Security to take a sponsor's layoffs into account, but it does not say a layoff requires a denial and it does not change the H-1B statute or regulations. It must be implemented consistent with applicable law. In practice, expect closer questions and possible requests for evidence rather than an automatic refusal.
Does the layoff executive order apply to H-1B extensions?
The order applies to "any" labor condition application, petition, visa and entry for H-1B workers, so on its face it reaches extension petitions filed by your current employer as well as new and transfer petitions. USCIS has not said how it will apply the factor to extensions. If your employer has had layoffs, ask your attorney how to document why your role differs from the positions that were cut.
What counts as a layoff under EO 14431?
The order does not define layoff, "indirectly" or "similarly situated." The existing H-1B statute defines "lays off" as causing a worker's loss of employment, other than discharge for inadequate performance, workplace rule violations or cause, voluntary departure or retirement, or the end of a grant or contract. Whether agencies will borrow that definition is not yet known, because no implementing guidance had been published as of October 21, 2026.
Has the Labor Department started reviewing LCAs under the order?
The order required the Wage and Hour Division to begin reviewing data on previously submitted labor condition applications within 30 days of September 18, 2026, which was October 18, 2026. As of October 21, 2026, the Labor Department had not publicly announced that the review had started or what it covers. Its H-1B pages did not mention the order.
Green Card Guide AI is not a law firm and this article is not legal advice. It describes evidence-building strategy in general terms; your attorney determines what belongs in your petition and how it's argued.
