The big picture: A new executive order mandates that recent and planned layoffs be a significant factor in H-1B visa reviews, impacting labor applications, petitions, visas, and admissions.

Why it matters: Staffing and IT outsourcing firms, especially those placing workers at client sites, face intensified scrutiny regarding job duties, wages, and the potential displacement of U.S. workers.

Between the lines:

• The September 18, 2026 order applies to both direct employer layoffs and reductions at client worksites.
• The Department of Labor is set to begin reviewing previously filed LCAs around October 18, 2026.
• Firms must demonstrate clear distinctions between H-1B roles and eliminated U.S. positions, and prove control over sponsored workers.

Staffing & HR impact: Staffing firms must bolster compliance documentation to justify H-1B placements, potentially increasing administrative burden and compliance risk, particularly for third-party placements. This could affect recruiter mobility and operational costs.

The bottom line: Layoffs are now a critical, though not automatically disqualifying, factor in H-1B adjudication, demanding proactive preparation from sponsoring employers.