Trump signs H-1B order targeting employers that lay off Americans, tighten scrutiny of foreign hires

President Donald Trump has signed an executive order targeting employers that have laid off or plan to lay off American workers, as well as tightening scrutiny of foreign hires under the H-1B visa program. The order directs US agencies to scrutinize H-1B visa applications involving employers who have carried out layoffs in the previous year or are planning future layoffs that could negatively impact similarly situated American workers.

The Departments of Labor, Homeland Security, State, Commerce, and Education, along with the Small Business Administration, must work together to consider these layoffs when processing H-1B-related applications, petitions, visas, and entries. The Labor Department's Wage and Hour Division is also tasked with reviewing data from previously submitted labor condition applications to identify employers warranting further action.

The White House claims that some employers, third-party placement groups, and outsourcing companies have exploited the H-1B system to hire lower-paid foreign workers while displacing American employees, often requiring US workers to train their replacements before leaving their jobs. The order does not ban H-1B hiring outright, but rather instructs agencies to factor in layoff information during processing.

This move is part of a broader effort by the Trump administration to tighten the H-1B program, alongside the recent extension of the $100,000 H-1B visa fee requirement.