Highlights
- The U.S. Department of Labor (DOL) has launched Project Firewall, a sweeping enforcement initiative designed to ensure strict employer compliance with the H-1B visa program.
- Coupled with the recent presidential proclamation imposing a $100,000 supplemental fee on certain H-1B filings, these actions underscore that the H-1B program is a top priority for the current administration.
- With enhanced DOL measures to enforce regulatory compliance, new financial obligations, higher prevailing wage standards and tighter entry restrictions, employers should anticipate and proactively prepare for significant regulatory and operational changes to the H-1B visa program.
The U.S. Department of Labor (DOL) has launched Project Firewall, a sweeping enforcement initiative designed to ensure strict employer compliance with the H-1B visa program. Coupled with the recent presidential proclamation imposing a $100,000 supplemental fee on certain H-1B filings, these actions underscore that the H-1B program is a top priority for the current administration. (See Holland & Knight's previous alert, "Summary of Presidential Proclamation: Restriction on Entry of Certain Nonimmigrant Workers," Sept. 20, 2025.)
With enhanced DOL measures to enforce regulatory compliance, new financial obligations, higher prevailing wage standards and tighter entry restrictions, employers should anticipate and proactively prepare for significant regulatory and operational changes to the H-1B visa program.
Key Developments
- Secretary-Certified Investigations. The Secretary of Labor will have authority to personally certify investigations where "reasonable cause" exists to believe an employer is non-compliant. This represents a major escalation in DOL's enforcement role.
- Expanded Enforcement Measures. Project
Firewall investigations may be initiated either through secretary
certification or through traditional enforcement channels.
Employers found in violation face serious consequences, including:
- payment of back wages owed to affected workers
- civil money penalties
- debarment from participation in the H-1B program for a specified period
- Interagency Collaboration. DOL will coordinate closely with the U.S. Department of Justice's Civil Rights Division, Equal Employment Opportunity Commission (EEOC) and U.S. Citizenship and Immigration Services (USCIS) to identify discriminatory practices and ensure broad, coordinated enforcement.
Implications for Employers
Employers should expect:
- increased scrutiny of H-1B petitions, job classifications and wage compliance
- heightened risk of investigations and enforcement actions triggered by secretary certification, interagency referrals or worker complaints
- greater data sharing across federal agencies, potentially leading to multi-agency inquiries and enforcement exposure
- financial and operational burdens, including the new $100,000 H-1B visa fee requirement, expected prevailing wage increases and stricter entry controls for foreign national workers
Recommended Actions
- Audit H-1B Policies and Practices. Conduct a thorough review of hiring, wage and compliance protocols. Ensure accurate classification of positions, adherence to prevailing wage obligations, and full alignment between job duties and what was filed in the Labor Condition Application (LCA) and petition.
- Maintain Public Access Files (PAFs). Confirm that all required documentation – including LCA, wage rate, benefits and notice evidence – is complete, accurate and readily accessible for inspection.
- Ensure LCA Compliance. Verify that LCA posting requirements are met (worksite notices, electronic postings where applicable) and that all recordkeeping obligations are current.
- Prepare for Potential Investigations. Organize and safeguard documentation (payroll records, job descriptions, recruitment evidence, PAFs, LCAs, immigration filings) so they are ready for immediate production in the event of a DOL inquiry.
- Train HR and Management Teams. Provide updated training on H-1B compliance obligations, responding to government audits and avoiding practices that could be construed as discriminatory.
These developments reflect a sharp increase in enforcement intensity and regulatory burden for H-1B employers. Proactive compliance reviews now can significantly reduce the risk of penalties, debarment and costly disruptions later. Holland & Knight's Immigration Team will keep monitoring for additional developments.
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.
