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The U.S. Department of Labor (DOL) has initiated a new enforcement effort targeting H-1B employers called Project Firewall, signaling a significant shift toward stricter compliance and auditing. This initiative emphasizes expanded data-sharing and coordinated enforcement efforts with other key government agencies, including USCIS, the Department of Justice (DOJ), and the Equal Employment Opportunity Commission (EEOC).

Under Project Firewall, the Secretary of Labor can directly authorize investigations when there is reasonable cause to believe violations have occurred. Agencies will rely more heavily on petition data, worker complaints, on-site visits, and audits to initiate and pursue cases.

Increased Scrutiny and Interagency Coordination

Employers should prepare for a significant increase in enforcement activity, including more unannounced site visits, targeted record audits, detailed document requests, and wage and hour audits. Investigations may include interviews and visits by DOL or Fraud Detection and National Security (FDNS) officers to confirm that actual job duties, work locations, supervision, and anti-benching practices align with the documentation filed.

A key component of Project Firewall is robust cross-sharing of information. If one agency uncovers an issue—such as wage discrepancies or discriminatory layoff patterns—that information can quickly trigger further inquiries by other participating federal agencies.

Core Areas of Compliance Review

The DOL will be intensely focused on verifying that the actual details of employment align precisely with the certified Labor Condition Applications (LCAs) and H-1B petitions. This verification includes checking job titles, duties, wages, hours, and worksites—including remote locations and third-party client sites.

Investigators will also look closely at administrative compliance, reviewing whether employers:

  • Maintained complete Public Access Files (PAFs).
  • Posted worksite notices as required for all H-1B employees, including those working at remote or hybrid locations.
  • Paid required wages during nonproductive periods (adherence to anti-benching rules).
  • Promptly amended or withdrew LCAs and petitions following material changes to employment or terminations.

High-volume H-1B users, IT consulting and staffing firms, and employers undergoing restructurings or reductions in force (RIFs) face particular scrutiny. Employers may be prioritized for investigation when internal data suggests higher risk, such as inconsistency in remote-work practices, placement of employees at third-party sites without proper LCAs, underpayment of wages, worksite mismatches, or layoffs immediately followed by H-1B hiring.

In light of the strict new regime established by Project Firewall, all H-1B employers are strongly recommended to take immediate actions to ensure compliance.

  1. Conduct an Internal Audit: Perform an internal H-1B compliance audit, focusing on all active LCAs to confirm that job titles, duties, wages, and work locations for H-1B employees match what was certified and filed.
  2. Verify Wages and Amendments: Ensure that required wage levels are being met or exceeded. Any changes to compensation, hours, or job duties must be evaluated to determine whether an amended LCA and/or amended H-1B petition is required.
  3. Complete Public Access Files: Ensure that the Public Access Files (PAFs) for every LCA are complete, properly organized (including the LCA, wage documentation, and required notices), and readily accessible.
  4. Review Benching and Terminations: Review policies concerning benching, nonproductive status, and terminations to guarantee the continued payment of required wages and prompt withdrawal of LCAs and petitions when employment officially ends.

Failure to comply with Project Firewall’s requirements could lead to significant consequences for employers, including civil fines, back wage orders, and the temporary debarment from utilizing H-1B and related immigration benefits.