The executive order, issued by President Trump, compels the Labor Department, Department of Homeland Security and State Department to scrutinize an employer’s recent layoff history when reviewing H‑1B petitions.
It cites 800,000 to 1.3 million tech‑sector jobs lost between 2022 and 2026 as the backdrop for the tighter oversight.
The term "similarly situated" refers to workers whose duties, qualifications and experience match those of the H‑1B role—an interpretation that agencies will fine‑tune in forthcoming guidance.
The directive does not bar H‑1B sponsorship outright; instead, it mandates that agencies weigh recent or planned layoffs of comparable U.S. workers before approving petitions.
Because Indian nationals make up roughly 70 % of new H‑1B issuances, the measure is expected to tighten hiring for tech firms and delay visa approvals, with agencies to issue implementation guidance by September 30.