H-1B Sponsorship After Layoffs: What the New Executive Order Means for Employers

Updated September 29, 2026 | Executive order issued September 18, 2026

H-1B sponsorship after layoffs now requires particular attention to a new presidential directive. A September 18 executive order tells federal agencies to consider certain workforce reductions when reviewing H-1B matters.

For employers, the practical question is whether the people managing sponsorship have the same information as the people managing restructuring. A petition team should not learn about relevant layoffs only after a filing raises questions.

What does the executive order say about H-1B layoffs?

The September 18 executive order directs State, Labor and Homeland Security to consider whether a sponsor directly or indirectly conducted layoffs during the preceding year, or plans future layoffs, that negatively affect similarly situated U.S. workers. The directive covers LCAs, petitions, visas and entry.

It also directs DOL to begin reviewing previously submitted LCA data within 30 days to assess whether further action is warranted. Separately, the order calls for greater coordination with Commerce, Education and the Small Business Administration.

The White House fact sheet describes the administration’s broader enforcement objectives. However, employers should distinguish those objectives from the specific requirements in the order and any later agency guidance.

Does the order prohibit sponsorship after any H-1B layoff?

No. The text does not impose a blanket sponsorship ban whenever a company reduces its workforce. It directs agencies to consider particular layoff circumstances, consistent with applicable law.

Nevertheless, employers should avoid treating a different job title or department as the complete answer. Counsel needs enough information to assess the relationship between the affected jobs and the sponsored role.

For example, an employer may close one business unit while recruiting for a specialist position elsewhere. The team should be able to explain the actual duties, required skills and business need. A clear factual record supports a more useful legal assessment than an assurance that the positions are unrelated.

What should HR and legal review?

First, bring the relevant teams together. Include immigration counsel, employment counsel, HR and the business owner responsible for the sponsored position. Establish a way to share sensitive restructuring information with appropriate confidentiality.

Next, map the roles. Compare duties, skills, locations and reporting relationships where relevant. Identify gaps between the business explanation and the documents used for sponsorship.

Also, review the filing record. Check whether job descriptions, wage information and worksite details still reflect the actual position. Resolve inconsistencies before preparing the next submission.

For pending matters, ask a specific question. Does a workforce change require further analysis or action in this case? Do not assume that every pending petition needs the same response.

Finally, document decisions as they happen. Record the legitimate business reasons for a position and preserve relevant materials. Counsel should direct any legal analysis or privileged investigation.

What remains uncertain?

The directive does not provide a complete operational framework for every fact pattern. In particular, employers should monitor how agencies implement the review and address the relationship between layoffs and sponsored positions.

Accordingly, BHLG recommends a coordinated assessment before the next filing or restructuring decision. The goal is to identify relevant facts early enough to address them accurately.

Our immigration solutions for HR and in-house legal teams help businesses connect sponsorship decisions with the wider workforce plan.

How BHLG can help

Planning a restructuring while sponsoring foreign national employees? Speak with BHLG about coordinating the immigration review with your employment and business decisions.