On Sept. 19, 2025, the U.S. Department of Labor (DOL) announced Project Firewall, a new enforcement initiative focused on compliance with employers' obligations under H-1B visa program with respect to hiring and retention, wage and hour, and other employment practices. Project Firewall's stated goal is "to safeguard the rights, wages, and job opportunities of highly skilled American workers by ensuring employers prioritize qualified Americans when hiring workers and holding employers accountable if they abuse the H-1B visa process." The initiative calls for enhanced agency investigations and a wide range of enforcement practices including payments of back wages, civil fines, and disbarment from the H-1B program.
Main Features
- Investigations into employer's H-1B practices will be certified personally by the secretary of labor and conducted by DOL's Office of immigration Policy (OIP), Employment and Training Administration (ETA) and Wage and Hour Division (WHD), in coordination with Department of Justice (DOJ) Civil Rights Division, Equal Employment Opportunity Commission (EEOC), and U.S. Customs and Immigration Services (USCIS).
- Enforcement actions resulting from these investigations may
include:
- recovery of back wages,
- monetary fines, and
- employer debarment from the H-1B program.
What May Be Inferred from Past Practices
DOL announcement provides little practical detail on the nature and scope of investigations; however, past DOL and USCIS practices may provide some insight into what employers might be facing as part of Project Firewall:
- Unannounced site visits to verify H-1B employees' job duties stated in the H-1B petitions versus performed, wages promised versus paid, other work conditions, or benching (non-payment during assignment gaps) of H-1B employees.
- Audits of employers' records to verify actual wages, benefits offered, and compliance with LCA regulations.
- Challenges to employers' job descriptions or occupational classifications.
Legal Risks for Employers
- Financial – Potential for substantial back wages, fines, and penalties.
- Program Debarment – Employers found in violation may be barred from using the H-1B program for a prescribed period.
- Discrimination Investigations – DOJ involvement raises risks of claims of unequal treatment of U.S. workers, including, but not limited to, discriminatory hiring practices, lower wages paid due to availability of foreign labor, or unlawful displacement.
- Whistleblower Complaints – Retaliation claims by employees reporting suspected abuse may add to liability.
Practical Considerations for Employers
- Expect site visits, audits, and document requests and advise your H-1B employee population, HR, and security personnel accordingly. Develop an action plan. Ensure job titles and duties match filings.
- Maintain clear, organized records; make sure all required paperwork is accurate and accessible. Stress-test your HR systems for rapid audit response. Introducing or maintaining "job banks" with standard, uniform, and clear job descriptions and minimum requirements is recommended.
- Introduce or follow the existing practices to ensure proper tracking of any changes to H-1B workers' work conditions, especially moves to a new entity, location, or dissimilar role – any of these may require an action with respect to their existing H-1B authorization.
- Periodically audit Public Access Files for your H-1B workers to enhance compliance, with prevailing and actual wage requirements and paperwork maintenance guidelines.
- Train HR, managers, and recruiters on lawful hiring practices, specifically, not to favor H-1B candidates over qualified U.S. workers; document good-faith efforts to hire U.S. workers; avoid job postings or policies that appear to exclude U.S. workers.
- Review contracts with third-party staffing firms to enhance compliance with H-1B regulations across the supply chain.
- Brief executives and board members on potential penalties and reputational risks.
- Align messaging: emphasize prioritization of American workers while maintaining compliance for foreign hires.
Key Takeaway
Project Firewall represents a fundamental increase in the level of H-1B enforcement. Employers should expect investigations and consider acting now to strengthen compliance programs and mitigate legal exposure.
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.
