Facts vs. Fiction – Project Firewall And The New Era Of H-1B Enforcement

The Department of Labor (DOL)'s new Project Firewall has become a much discussed—and misunderstood—development in U.S. business immigration. Announced in September 2025, this initiative signals an increased focus on federal enforcement of the H-1B visa program. While employers are right to take notice, some of the conversation around Project Firewall has been driven by speculation. Below, we seek to separate fact from fiction to help HR leaders, compliance officers, and global mobility teams prepare effectively.

Fact vs. Fiction #1: Project Firewall Is Just Another Routine Audit Program

Fiction: Project Firewall is business as usual—another compliance program with limited reach.

Fact: Project Firewall is one of the most aggressive H-1B enforcement initiative in more than a decade.

• It enables "secretary-certified investigations," giving the secretary of labor authority to personally initiate high-priority employer audits.
• The initiative expands interagency data sharing between DOL, Department of Homeland Security, and Department of State to create a more unified enforcement network.
• Early indications show targeted audits of employers with patterns of offsite placement, wage-level discrepancies, or unusually high H-1B ratios.

Takeaway: Employers might expect deeper, faster, and more coordinated investigations that go beyond traditional wage-and-hour audits.

Fact vs. Fiction #2: Only Large Tech Companies Are Affected

Fiction: Enforcement will focus solely on major tech firms or outsourcing companies.

Fact: Project Firewall is industry neutral. While data-driven targeting may prioritize large users of H-1Bs, smaller employers may be equally exposed if red flags appear—such as inconsistent job titles, frequent amendments, or third-party worksite placements.

Takeaway: Mid-sized and niche employers (including startups and consulting firms) should not assume immunity.

Fact vs. Fiction #3: Employers May 'Fix' Compliance Issues Later

Fiction: If issues arise, they may be corrected retroactively by paying fines.

Fact: Under Project Firewall, noncompliance may lead to debarment, not just civil penalties, impacting employers' ability to sponsor new H-1B visas in the future.

• Employers found to have committed serious or willful violations may be barred from filing H-1B petitions for a period of years.
• Back-wage orders, public disclosure, and potential referrals to USCIS for status revocation are possible penalties.

Takeaway: Compliance must be proactive—rectifying issues after a DOL inquiry may no longer be sufficient.

Preparing for the Firewall Era: Practical Considerations for Employers

1. Conduct an internal H-1B audit. Review LCAs, job titles, and wage levels for consistency and accuracy.
2. Document everything. Keep records of worksite locations, job duties, and changes in employment conditions.
3. Train HR and project managers. Ensure everyone involved understands LCA posting, amendment triggers, and documentation rules.
4. Monitor third-party placements. Ensure vendors and clients understand and adhere to compliance obligations.

Conclusion

Project Firewall represents a new enforcement paradigm for employment-based immigration. The era of "checklist compliance" is over—now, employers must demonstrate active, documented adherence to the spirit and letter of H-1B regulations. The right preparation may help companies navigate this environment confidently, protect their foreign talent pipelines, and reduce exposure to costly investigations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.