US signals tougher H-1B scrutiny for employers with layoffs

US Vice-President JD Vance has warned companies seeking H-1B visas that they will face closer scrutiny if they have laid off American workers. In an interview on the All-In podcast, Vance said the programme should benefit the US economy and should not be used to replace American employees with lower-paid foreign workers. His comments followed a September 18 executive order directing the Departments of State, Labour and Homeland Security to consider an employer’s recent or planned layoffs when reviewing H-1B applications.

The Labour Department was also instructed to examine information from previously filed labour-condition applications and determine whether further enforcement action was warranted. The administration has separately imposed a $100,000 payment requirement for certain H-1B petitions involving workers outside the United States. The restriction has been extended through September 21, 2027, with limited exceptions.

The policy is particularly significant for Indian professionals. People born in India accounted for 71 per cent of approved H-1B petitions in fiscal 2024, according to the supplied material. The $100,000 payment does not apply to every Indian H-1B worker.

Existing holders and foreign graduates already in the US are generally outside that specific entry restriction. Employers may respond by hiring locally, moving work overseas or limiting sponsorship to highly specialised roles.