The H-1B Holiday Rush Towards H-1B Enforcement

Highlights

• The U.S. Department of Labor (DOL)'s new "Project Firewall" significantly intensifies H-1B enforcement, enabling expanded audits, interagency data sharing, stricter penalties (including debarment), and increased scrutiny of patterns like offsite placements, wage discrepancies, and inconsistent job information.
• Employers face a heightened year-end compliance push, as the initiative places renewed focus on documentation, accurate filings, and monitoring of third-party placements, with the DOL publishing an H-1B Compliance Assistance Toolkit to guide expectations.
• Proactive, collaborative compliance is now essential, and employers are urged to conduct regular audits, strengthen internal processes, and work closely with immigration counsel ahead of the FY 2027 H-1B registration season.

With the holidays just around the corner, Project Firewall, a new enforcement initiative launched by the DOL, will ensure H-1B compliance does not take any time off.

The H-1B nonimmigrant work visa is the most popular work visa used by U.S. employers to employ foreign nationals in professional, highly skilled positions that require at least a bachelor's degree.

However, there are difficulties associated with this visa type. Under current worksite enforcement initiatives, the H-1B visa category continues to receive heightened scrutiny. Additionally, the systematic shortcomings of the H-1B lottery atmosphere make it increasingly difficult to secure these visas, namely a high volume of submissions, an increase in the likelihood of fraud, and duplicative submissions for the same H-1B beneficiary. Now, employers will face new challenges because of new compliance initiatives.

Project Firewall: An Enforcement Gift to the Department of Labor

The DOL announced Project Firewall in September 2025, stating the program would strengthen investigative efforts to promote employer compliance with H-1B visa program obligations.

Project Firewall is the compliance gift that just keeps on giving new methods of enforcement to the DOL. It empowers the DOL in the following ways:

• Permits the Secretary of the DOL to initiate employer audits;
• Expands data sharing between the U.S. Departments of Labor, Homeland Security, and State;
• Allows punishment through years-long debarment in addition to civil penalties;
• Facilitates referrals to U.S. Citizenship and Immigration Services for status revocation; and
• Permits orders for the payment of back wages and public disclosure.

Since its inception, Project Firewall has enabled the initiation of audits based upon the DOL's observation of patterns of offsite placements, wage-level discrepances, and higher ratios of H-1B employees. Inconsistent job titles and frequent amendments have also prompted additional scrutiny.

Presenting employers with a guide to these enforcement changes, the DOL published an H-1B Compliance Assistance Toolkit in September.

An H-1B Holiday Rush to Avoid the Naughty List

The expansion in compliance enforcement has created a new form of holiday rush for employers: the rush to ensure nonimmigrant programs, particularly H-1B visa programs, meet compliance requirements. In response to this increase in compliance efforts and interdepartmental government collaboration, Barnes & Thornburg encourages employers to adopt the following five practices:

1. Initiate a comprehensive H-1B compliance program review with counsel;
2. Conduct an internal H-1B audit in coordination with counsel at least once annually;
3. Increase documentation practices, including changes in job duties, worksite locations, and any significant change in the circumstances of employment;
4. Provide regular compliance guidance to human resources and other relevant company representatives, as well as vendors and clients involved in third-party placements; and
5. Routinely monitor third-party placements.

Despite the landscape, the H-1B visa category remains an essential method to temporarily employ foreign national employees. More than ever, the category is complex, and requires a thoughtful and strategic approach, including collaboration with counsel on compliance practices far outliving the receipt of the approval notice. As such, we encourage employers and potential H-1B registrants to consult with immigration counsel prior to proactively plan to ensure compliance ahead of the Fiscal Year 2027 H-1B registration season.

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.