A new Executive Order instructs federal agencies to consider an employer’s recent and planned layoffs when reviewing H-1B matters and signals increased scrutiny of employers using the H-1B program.
On September 18, President Trump issued an Executive Order directing the Departments of State, Labor, and Homeland Security — when reviewing H-1B labor condition applicants (LCAs), petitions, visas, and entry requests — to consider whether a sponsoring employer directly or indirectly conducted layoffs during the previous year or plans future layoffs that would negatively affect similarly situated U.S. workers.
The E.O. also requires DOL’s Wage and Hour Division to begin reviewing previously submitted H-1 LCA data within 30 days to determine whether further action against sponsoring employers is warranted.
The E.O. does not generally prohibit employers from sponsoring H-1B workers after conducting layoffs. Nevertheless, it makes layoff history an express consideration across H-1B processing and signals that employers with recent or anticipated layoffs may face heightened scrutiny.
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