Trump Seeks Review of Foreign Hiring By Federal Contractors

On August 3, 2020, President Trump signed a new Executive Order (“Aligning Federal Contracting and Hiring Practices With the Interests of American Workers”) directing federal agencies to conduct a review of federal contractors’ and subcontractors’ use of nonimmigrant workers and overseas labor on federal contracts. The agencies are directed to review the nature of the work performed by temporary foreign labor on such contracts; whether opportunities for United States workers were affected by such hiring; and any potential effects on the national security caused by such hiring. After the review, the agencies are required to recommend improvements to their procurement processes within 120 days. The Order also directs the Department of Labor and the Department of Homeland Security to take action within 45 days to ensure that the wages and working conditions of U.S. workers are not adversely affected by the hiring of H-1B workers.

It is important to note that the Order does not have an immediate impact on H-1B workers. At this point, other than imposing a reporting requirement on the contracting agencies, it is unclear what the Order will accomplish. We must wait and see if any changes will result from this latest Executive Order.