Here’s what’s new: federal agencies now have to check an employer’s recent or planned layoffs of “similarly situated” U.S. workers before they’ll approve H-1B petitions, Labor Condition Applications, or related visa applications. On top of that, the administration just extended the $100,000 H-1B fee proclamation through September 2027 — even though it’s still being challenged in court. If your company sponsors H-1B workers, this affects you. If your status depends on that sponsorship, this affects you too. Had layoffs recently? Planning an H-1B filing soon? Pull your records now and talk to an immigration attorney before you file. Don’t wait until USCIS asks the questions first.
Background: What This Means
Quick refresher on how this works. The H-1B visa lets U.S. employers hire foreign workers for “specialty occupations” — jobs that generally require a bachelor’s degree or higher. Before an employer can sponsor someone, they file an LCA with the Department of Labor, attesting they’ll follow wage and working condition rules. Then comes the I-129 petition with USCIS. Two steps, two agencies, and now — one more layer of scrutiny.
Separately, a 2025 presidential proclamation had proposed a $100,000 fee tied to certain H-1B filings. That proclamation was challenged in federal court, and portions remain blocked or contested as of this writing. Even so, the administration has extended the proclamation’s stated effective period through September 2027. Employers should track the litigation status through the Federal Register at federalregister.gov and through updates from the American Immigration Lawyers Association at aila.org, since court rulings can change what fees actually apply.
How This Affects Employers and H-1B Workers
If your company is planning a new H-1B petition, an extension, or a change of employer petition, expect more scrutiny of your recent hiring and layoff history. Adjudicators may issue a Request for Evidence (RFE), which is an official letter asking for more documents before a decision is made. Employers with layoffs in the same job category, department, or work location as the H-1B role may face longer processing times or denials if they cannot show the layoffs and the new hire are not connected.
H-1B workers may also feel the effects. Visa stamping at U.S. consulates abroad, covered under State Department rules at travel.state.gov, can be delayed while consular officers review employer layoff data. Workers changing employers, extending status, or applying for a visa stamp after travel should build in extra time.
Employers in technology, finance, consulting, and other industries that have done recent workforce reductions should assume any pending or future H-1B filing will draw a closer look. This applies broadly to sponsors using the H-1B specialty occupation visa category, and it can also affect related filings such as L-1A and L-1B intracompany transfer petitions where similar workforce questions can arise.
What You Should Do Now
- Audit your layoff history. Pull records of any layoffs, reductions in force, or role eliminations from the past 12 to 24 months, organized by job title, department, and location.
- Document business necessity. Keep clear records showing why the H-1B role is different from any eliminated positions, such as different skills, project needs, or business unit.
- Review your LCA filings. Confirm wage levels and worksite information match your actual staffing plans before submitting a new LCA to the Department of Labor.
- Plan for delays. Build extra time into hiring and relocation timelines for RFEs, consular review, and possible fee changes tied to the extended proclamation.
- Track the litigation. Monitor court rulings on the $100,000 fee proclamation, since a change in the court order can change what your company owes or is required to pay.
- Talk to counsel before you file or lay off workers. Getting legal advice early, especially before a layoff that could touch an H-1B role, can help you avoid problems later.
How Tez Law P.C. Can Help
Tez Law P.C. advises employers and workers on H-1B petitions, LCA compliance, and responses to Requests for Evidence tied to layoff and workforce questions. The firm can review a company’s staffing history and prepare supporting documentation before filing, and it can also assist with related employment-based categories, including options described on the firm’s employment-based visa page. Attorney JJ Zhang (California Bar #326666) leads the firm’s immigration practice and can discuss how these changes may apply to your situation.
Frequently Asked Questions
What does “similarly situated” U.S. worker mean?
It generally refers to a U.S. worker in the same or a comparable job title, duties, department, or location as the H-1B position an employer wants to fill. Agencies may compare recent layoffs against the sponsored role to decide if the petition should be approved.
Is the $100,000 H-1B fee actually in effect right now?
As of September 29, 2026, parts of the fee proclamation remain contested in federal court, so the fee may not apply to every filing. The administration has extended the proclamation’s stated period through September 2027, but the final outcome depends on ongoing litigation, so employers should confirm current status before filing.
Will this affect H-1B extensions for current employees, or only new petitions?
The directive applies broadly to H-1B adjudications, which can include new petitions, extensions, and change-of-employer filings. Employers filing any of these should be ready to address layoff history if asked.
What happens if my employer gets a Request for Evidence about layoffs?
An RFE gives the employer a deadline to submit more documents, such as organizational charts, job descriptions, or business explanations, showing the H-1B role is separate from any eliminated positions. Missing the deadline or submitting weak evidence can lead to a denial, so it generally helps to respond with legal guidance.
Does this policy affect other visa categories besides H-1B?
The current directive is focused on H-1B petitions, LCAs, and related visa applications, but workforce and layoff questions can also come up in other employment-based filings. Employers using categories such as EB-2 or EB-3 sponsorship should also keep clear staffing records as a precaution.
These changes can affect hiring plans, budgets, and the timeline for bringing H-1B workers into the United States. If your company is planning a filing, has had recent layoffs, or needs help understanding how the extended fee proclamation may apply, you can schedule a consultation with Tez Law P.C. through the firm’s contact page to discuss your options.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws and agency practices change; contact Tez Law P.C. at 626-678-8677 or [email protected] about your situation. Prior results do not guarantee a similar outcome.