Daijiworld Media Network - Washington
Washington, Sep 19: The Trump administration has ordered federal agencies to apply greater scrutiny to H-1B visa applications from employers that have recently laid off, or plan to lay off, similarly situated US workers.
An executive order signed by President Donald Trump on September 18 directs the Departments of State, Labor and Homeland Security to consider whether a sponsoring employer has “directly or indirectly” carried out layoffs in the previous year or plans future layoffs that negatively affect the employment of similarly situated US workers. The consideration will apply when agencies assess H-1B labour condition applications (LCAs), petitions, visa applications and applications for admission to the US.
The White House said the H-1B programme was created to bring specialised foreign workers into the US to supplement the economy, but alleged that some employers have used the programme to undercut and displace American workers.
The executive order claims that technology-sector employers have collectively sought H-1B visas for hundreds of thousands of workers while laying off between 800,000 and 1.3 million American employees from 2022 through 2026. It also alleges that some laid-off US workers were required to train their foreign replacements. These figures and allegations are presented by the administration as justification for the new measures.
The order further directs federal agencies to share wage, employment, industry and other labour-market data while assessing H-1B cases. The Department of Labor has been given 30 days to review data from previously filed LCAs and determine whether further action against sponsoring employers is warranted.
An employer seeking to sponsor a foreign worker under the H-1B programme must first file an LCA with the US Department of Labor before submitting the H-1B petition to US Citizenship and Immigration Services (USCIS). The LCA contains legally binding attestations concerning issues including wages, occupation, work location and working conditions.
The order also raises the prospect of greater scrutiny of wages, job duties and job requirements. Immigration law firm Fragomen said implementing guidance from the immigration agencies is still awaited and that the new measures could lead to increased scrutiny and enforcement activity.
Mitch Wexler, senior counsel at Fragomen, said it was not yet clear how immigration agencies would implement the provisions. He noted that existing law already requires certain high-volume H-1B employers and employers found to have wilfully violated programme rules to attest that they have not laid off US workers and replaced them with H-1B workers in essentially equivalent positions within specified 90-day periods.
Wexler also said it remained unclear how agencies would use broader economic data when adjudicating H-1B filings, although he said this could result in greater scrutiny of offered wages, job duties and job requirements.
The executive order also targets outsourcing arrangements, alleging that some H-1B workers are used to replace US employees at third-party client businesses before work is eventually transferred offshore.
The issue of US layoffs and H-1B hiring has previously drawn scrutiny from lawmakers. In 2025, US Senators Chuck Grassley and Dick Durbin questioned companies including TCS, Cognizant, Amazon, Microsoft, Google, Meta and Apple over their hiring and layoff practices. Media reports said the companies disputed or rejected aspects of the allegations.
Separately, the Trump administration on September 18 extended for another year a $100,000 payment requirement for certain H-1B petitions, through September 21, 2027. Fragomen said the fee policy is currently subject to a court order and that its implementation remains blocked pending further developments.
The new executive order moves the administration's concerns over layoffs and H-1B hiring into a formal interagency review process, although the practical impact will depend on implementing guidance from the relevant agencies.