New Executive Order Increases H-1B Employer Scrutiny and Compliance Reviews

H-1B Scrutiny and Compliance Reviews

On Sept. 18, 2026, the White House issued an executive order directing the Department of Homeland Security (DHS), the Department of Labor (DOL) and the Department of State to strengthen coordination and oversight in the administration of the H-1B program.

Under the order, agencies reviewing H-1B-related filings will be instructed to consider whether a sponsoring employer has recently conducted layoffs or plans future workforce reductions that would affect similarly situated U.S. workers. Agencies are also directed to consult economic, wage, employment and labor market data when evaluating H-1B applications and petitions.

Layoff Activity May Factor Into H-1B Adjudications

The executive order directs federal agencies to consider whether an employer has:

• Conducted layoffs within the previous year affecting similarly situated U.S. workers.
• Plans to implement future layoffs that could affect comparable positions.
• Taken actions that may negatively impact employment opportunities for U.S. workers.

These considerations may be applied when reviewing:

• H-1B petitions
• Labor Condition Applications (LCAs)
• H-1B visa applications
• Applications for admission to the U.S. in H-1B status

While it remains unclear how agencies will implement these provisions, the order signals a greater focus on employer workforce practices during the H-1B review process.

Economic and Labor Market Data to Be Considered

The executive order also directs agencies to consult a broader range of federal economic information when adjudicating H-1B-related filings. According to the order, agencies may utilize wage, employment, academic, industry and other economic data to support their reviews.

Although implementation guidance has not yet been released, employers may see increased scrutiny of:

• Offered wage levels
• Job duties and position requirements
• Specialty occupation eligibility
• Supporting documentation submitted with H-1B filings

Increased H-1B Compliance Reviews Expected

The executive order further directs the DOL to begin reviewing previously submitted labor condition applications to determine whether enforcement action may be warranted.

As a result, employers may experience:

• Increased H-1B compliance reviews
• Greater scrutiny of LCA attestations
• Additional requests for supporting documentation
• Higher levels of enforcement and investigative activity

What Employers Should Know

The executive order does not immediately change H-1B filing requirements. However, it signals the administration’s continued focus on H-1B program integrity, employer compliance and enforcement.

Employers that sponsor H-1B workers may wish to review:

• Workforce reduction and layoff practices
• H-1B compliance procedures
• LCA documentation
• Wage and job classification practices
• Supporting evidence for current and future H-1B filings

Envoy Global expects federal agencies to issue additional implementation guidance in the coming months.

Looking Ahead

While significant questions remain regarding implementation, the executive order points to increased government scrutiny of H-1B filings and employer practices. Organizations that rely on H-1B talent should monitor agency guidance and prepare for heightened compliance and enforcement activity as agencies begin carrying out the order.

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