Your Layoff History Is Now Part of Your H-1B File
A company that sponsors H-1B workers can treat a reduction in force and its visa filings as two separate projects, handled by two separate teams.
That separation ended on September 18, 2026. An executive order now directs federal agencies reviewing H-1B petitions, labor condition applications, and visas to consider whether the employer laid off similarly situated U.S. workers in the prior year, or plans to.
Old filings are included. The order directs federal labor regulators to begin reviewing previously submitted labor condition applications by October 18, 2026.
The order is Exec. Order No. 14431, 91 Fed. Reg. 60501 (2026), and it asks whether a layoff affected workers who are similarly situated to the sponsored role. That comparison turns on job duties, required qualifications, and location, so two reductions that look alike on a spreadsheet can come out very differently.
California adds a visibility problem of its own. Under the California WARN Act, Lab. Code § 1400 et seq., a covered layoff requires advance written notice to the state, and the state publishes the WARN notices it receives in a public report, so a California employer’s mass layoff history is easy for anyone to find.
The failure pattern is quiet. The reduction file describes eliminated roles one way, the sponsorship file describes sponsored roles another way, and in a small company without in-house immigration counsel, the two files often sit with different outside vendors who never compare notes.
The proof problem arrives with a question about why a sponsored position survived a reduction that cut similar U.S. roles. Answering it after the fact, from two records that were never reconciled, is the hardest version of that conversation.
Cost pressure is separate but real. The $100,000 payment requirement for certain H-1B entries was extended through September 21, 2027, although a federal court order still bars collecting it while the appeal proceeds.
The better frame is one record, not two. Any reduction and any sponsorship activity inside the same 12-month window belong in a single file that explains how they relate.
If you reduced staff in the past year and also filed or extended H-1B petitions, the two records may be read together before you have compared them yourself. That is what a first conversation is for.
Contact Michael Trust Law, APC for a no-charge initial consultation. The facts determine what needs to be addressed – and how much of a conversation that takes.
This post shares general information based on common patterns I see in California workplaces. It is not legal advice, does not create an attorney-client relationship, and outcomes depend on specific facts – no lawyer can guarantee a result. Past results do not guarantee or predict future outcomes. AI may have been used to create this post. All content reviewed by a CA attorney before publication.