USCIS has revoked and denied multiple H-1B petitions from a major IT consulting firm due to improper wage classifications, raising concerns about unfair competition in the U.S. labor market.
The U.S. Citizenship and Immigration Services (USCIS) has taken significant action by revoking and denying multiple H-1B petitions after discovering that a prominent IT consulting company had classified skilled technology jobs at wage levels that did not align with the positions’ actual duties and requirements.
This decision was communicated by USCIS through a post on X, where the agency’s Vermont office indicated that it identified the problematic petitions during its review of H-1B cases. The agency stated, “USCIS in Vermont identified H-1B petitions from a major IT consulting company that classified skilled technology jobs at wage levels below what the positions’ duties and requirements supported.”
USCIS emphasized that such practices could have far-reaching implications for the U.S. labor market. Employers sponsoring workers through the H-1B program are mandated to meet specific wage requirements, and failing to do so can undermine these standards. The agency remarked, “This practice undercuts required wages and creates unfair competition for U.S. workers.”
While USCIS did not disclose the name of the IT consulting firm involved, nor the number of petitions reviewed or the specific technology positions affected, it confirmed that multiple petitions were denied and revoked due to the identified wage-level issues.
In its statement, USCIS underscored its commitment to protecting American workers and maintaining the integrity of employment-based immigration programs. “We denied and revoked multiple petitions, protecting American workers and preserving the integrity of employment-based immigration programs,” the agency stated.
This recent action has brought renewed scrutiny to how employers classify H-1B positions, particularly within the technology and IT consulting sectors. Wage levels play a critical role in the H-1B process, as employers must adhere to applicable wage requirements for the positions they seek to fill with foreign workers.
The announcement from USCIS also follows a series of federal investigations into alleged misuse of the H-1B system, particularly involving IT consulting and staffing companies. In a notable case, the owner of a San Jose-based technology staffing firm was sentenced to 14 months in prison in April 2025 after pleading guilty to a conspiracy involving H-1B visa fraud. Prosecutors revealed that the firm submitted fraudulent H-1B applications, falsely claiming that foreign workers had secured specific jobs at designated end-client companies, which did not exist.
Additionally, federal authorities have pursued other cases where employers misrepresented the actual work that H-1B beneficiaries would perform. In April 2026, two men from East Bay pleaded guilty to conspiring to commit H-1B visa fraud. They submitted fraudulent petitions claiming that foreign workers would be employed on projects for the University of California, while intending to place them with other clients instead.
However, it is important to note that USCIS’s latest action should not be automatically categorized as an H-1B fraud case. The agency has not accused the unnamed IT consulting company of criminal fraud; rather, it has stated that the company improperly classified skilled technology positions at wage levels that did not reflect the actual duties and requirements. USCIS’s public statement did not include any allegations of criminal wrongdoing against the company.
The focus of USCIS appears to be on ensuring that H-1B positions are classified and compensated in a manner that accurately reflects the work involved. For American workers, this issue transcends individual petitions. USCIS argues that assigning skilled positions to lower wage levels can undermine required wages and foster an unfair competitive environment.
This action serves as a warning to H-1B employers, particularly those in the technology consulting sector, that USCIS may closely scrutinize the wage levels assigned to positions to ensure they are consistent with the actual duties and requirements of the job.
As USCIS continues its review of employment-based immigration cases, the recent investigation in Vermont may add an additional layer of scrutiny for companies that heavily rely on H-1B workers for technology and other specialized roles. The agency’s actions reflect a broader commitment to maintaining fair labor practices and protecting the interests of American workers.
According to The American Bazaar, the implications of this move could resonate throughout the technology sector, prompting companies to reassess their wage classifications and employment practices.