The US Department of Labor under President Donald Trump has significantly expanded its oversight of the H-1B visa program, signaling a tougher stance on employers suspected of violating foreign worker regulations.
Under a new enforcement initiative known as Project Firewall, the agency has launched nearly 200 active investigations targeting compliance failures in the H-1B specialty occupation visa system. The program is heavily utilized by major technology employers such as Amazon, Microsoft, Google, and Meta Platforms.
Unlike previous enforcement actions that relied mostly on worker complaints, Project Firewall allows the Labor Secretary to personally authorize proactive investigations without requiring a formal complaint. At least one such investigation has already been approved directly by Labor Secretary Lori Chavez-DeRemer, according to officials.
Expanded Scrutiny Across Industries
The H-1B program permits foreign professionals with at least a bachelor’s degree to work in the U.S. across sectors such as technology, manufacturing, healthcare, finance, and education. The new enforcement approach significantly widens the scope of government review.
Legal experts note that the new investigations are broader than traditional complaint-driven audits. Edward Raleigh, a partner at Fragomen, Del Rey, Bernsen & Loewy, said the certified reviews now being launched can examine company-wide practices rather than isolated cases.
The Labor Department has also reported a sharp increase in external complaints and is coordinating more closely with other federal regulators to monitor foreign hiring practices.
Multi-Agency Crackdown on H-1B Abuse
Enforcement pressure is also rising across other federal agencies. A fraud unit within US Citizenship and Immigration Services has increased unannounced on-site inspections at workplaces employing H-1B workers. Meanwhile, the Equal Employment Opportunity Commission is investigating claims of discrimination against U.S. workers when companies show preference for visa holders.
As a result, many companies are now conducting internal audits of their H-1B records for the first time to ensure compliance.
Primary Areas Under Investigation
According to immigration attorneys, investigators are concentrating on:
- H-1B-dependent employers, where visa holders make up at least half of the workforce
- Staffing and third-party contracting firms that place H-1B workers with other businesses
Officials are closely reviewing the Labor Condition Application (LCA) and the required public access files to confirm that workers are receiving the wages promised and that their job duties match approved descriptions.
Violations may lead to financial penalties, referral to other enforcement agencies, or full disbarment from participation in the H-1B program.
Legal Challenges May Follow
Under prior legal precedent, federal courts have ruled differently on how far the Labor Department may extend investigations beyond individual complaints. While the Eighth Circuit previously limited the scope of labor probes, the Second Circuit later allowed broader organizational reviews.
Under Project Firewall, however, the government is increasingly relying on “secretary-certified” investigations authorized under the H-1B Reform Act of 2004, which require only “reasonable cause” or a “credible source” of concern—eliminating the need for a direct worker complaint.
Legal analysts believe this shift could invite future courtroom challenges, particularly if employers argue that expanded investigations exceed statutory authority.
Employer Response and Compliance Strategy
Companies facing possible inspections are being advised to:
- Review wage documentation carefully
- Ensure job roles align with visa filings
- Confirm proper posting and notice requirements
- Maintain complete and up-to-date public access files
Some former Labor Department officials have urged the government to balance enforcement with education, warning against a purely punitive approach.
Nonetheless, Project Firewall marks one of the most aggressive federal enforcement pushes in the history of the H-1B program, placing thousands of U.S. businesses under heightened regulatory scrutiny.
