The H-1B Layoff Order: What It Means When You Choose an Employer

The short answer

On September 18, 2026, an executive order told DHS, the Labor Department and the State Department to consider an employer's recent and planned layoffs when reviewing H-1B cases. It does not ban companies with layoffs from sponsoring, and it does not cancel approved petitions. But it does mean the employer you pick now carries more weight for your visa path.

What the order does

• Adds a layoff check to H-1B reviews, covering petitions, extensions and consular visa processing.
• Looks back a full year and also at planned layoffs, which is broader than existing H-1B law.
• Applies to all sponsors, not only H-1B-dependent employers.
• Orders a review of past filings: the Labor Department was told to start reviewing previously filed LCAs within 30 days.

It builds on Project Firewall, a Labor Department enforcement initiative launched in 2025. Separately, the administration announced suspending eight major employers from the PERM labor certification program, the first step of many green card cases.

What it does not do

The order does not change H-1B eligibility rules on its own, and agencies must act within existing law. Key terms, such as what counts as a "similarly situated" US worker, were left undefined, so how strictly it is applied may vary.

What it means for you

1. Transfers may get more questions. Moving to a company that recently cut staff in your role could draw extra scrutiny that it would not have drawn before.
2. Stability beats brand. A mid-size company with steady hiring may be a safer sponsor than a famous one in the middle of layoffs.
3. Ask direct questions in interviews: Has the team had recent layoffs? Has the company filed H-1B petitions this year? Is green card sponsorship (PERM) part of the offer?
4. Keep your documents ready. Offer letters, pay stubs and a clear job description help if your case gets a request for evidence.

Frequently asked questions

Can a company with layoffs still sponsor me? Yes. Layoffs are not automatically disqualifying, but expect closer review.

Does this affect my existing H-1B? It doesn't revoke approved petitions, but extensions and visa stamping can be reviewed under it.

Is this the same as the $100,000 fee? No. That's a separate proclamation signed the same day, and it remains blocked in court.

Want employers with steady hiring? Syncra screens openings for active hiring and sponsorship history. Talk to a Syncra recruiter.

Syncra Talent Solutions is not a law firm and does not provide legal advice.

Sources: Ellis · Manifest Law · Morgan Lewis · National Law Review · Reddy Neumann Brown