US can now launch H-1B investigations without waiting for formal complaints

The US Department of Labor has intensified oversight of the H-1B visa program through Project Firewall, Bloomberg reported. The department has opened about 200 investigations and, for the first time, is using a provision that allows the labor secretary to authorize broad, proactive reviews without waiting for a formal complaint.

The H-1B program is widely used across the US technology sector, including companies such as Amazon, Microsoft, Google, and Meta, as well as industries like manufacturing, healthcare, finance, and education. The program allows employers to hire foreign workers with at least a bachelor’s degree for specialized roles.

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According to the Bloomberg report, Project Firewall is expected to result in wider investigations than traditional complaint-driven reviews. The Department of Labor has seen a rise in external complaints and is coordinating more closely with other regulatory agencies. Many employers are now conducting internal audits of their public access files, which include required documents such as labor condition applications.

Investigators typically examine whether companies are paying H-1B workers the wages listed in official filings and whether employees’ duties match the job descriptions submitted to the government. Violations can lead to financial penalties or temporary bans from participating in the H-1B program. Findings may also be forwarded to other agencies for further action.

The US Citizenship and Immigration Services fraud unit has increased workplace visits over the past year. The Equal Employment Opportunity Commission is also reviewing cases involving alleged national origin discrimination connected to the hiring of foreign workers.

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Legal framework for proactive reviews

Past court rulings have created differing interpretations of how far DOL investigations can extend when initiated from a single complaint. Project Firewall relies on an authority under the H-1B Reform Act of 2004 that permits secretary-approved investigations when there is reasonable cause to believe an employer may be violating the law.

Employers can request clarification from investigators during site visits and delay document reviews until legal counsel is present. Bloomberg reported that the department appears to be structuring Project Firewall to withstand challenges related to the scope of its investigative powers.