The U.S. Department of Labor has launched Project Firewall, a new initiative aimed at enforcing strict compliance among H-1B employers through enhanced audits and interagency coordination.
The U.S. Department of Labor (DOL) has announced the launch of Project Firewall, a significant enforcement initiative targeting H-1B employers. This program represents a decisive shift towards stricter compliance and auditing practices within the H-1B visa framework.
Project Firewall emphasizes increased data-sharing and coordinated enforcement efforts among key government agencies, including the U.S. Citizenship and Immigration Services (USCIS), the Department of Justice (DOJ), and the Equal Employment Opportunity Commission (EEOC).
Under this new initiative, the Secretary of Labor is empowered to authorize investigations directly when there is reasonable cause to suspect violations. The DOL will increasingly rely on various sources of information, including petition data, worker complaints, on-site visits, and audits, to initiate and pursue investigations.
Employers can expect a marked increase in enforcement activities, which will include more unannounced site visits, targeted record audits, detailed document requests, and wage and hour audits. Investigations may involve interviews and visits by DOL officials or Fraud Detection and National Security (FDNS) officers to ensure that job duties, work locations, supervision, and anti-benching practices are consistent with the documentation submitted.
A critical aspect of Project Firewall is the robust cross-sharing of information among agencies. If one agency identifies issues—such as wage discrepancies or discriminatory layoff patterns—this information can quickly prompt further inquiries by other federal entities involved in the initiative.
The DOL’s focus will be on verifying that the actual employment details align precisely with the certified Labor Condition Applications (LCAs) and H-1B petitions. This verification process will include checking job titles, duties, wages, hours, and work locations, which encompasses remote locations and third-party client sites.
Investigators will also scrutinize administrative compliance, ensuring that employers have maintained complete Public Access Files (PAFs), posted required worksite notices for all H-1B employees—including those working remotely or in hybrid arrangements—and adhered to anti-benching rules by paying required wages during nonproductive periods. Additionally, employers must promptly amend or withdraw LCAs and petitions following any material changes in employment or terminations.
High-volume H-1B users, particularly IT consulting and staffing firms, as well as employers undergoing restructurings or reductions in force (RIFs), will face heightened scrutiny. Employers may be prioritized for investigation based on internal data that indicates higher risk, such as inconsistencies in remote work practices, improper placement of employees at third-party sites without valid LCAs, underpayment of wages, worksite mismatches, or layoffs that are immediately followed by H-1B hiring.
In light of the stringent compliance measures established by Project Firewall, H-1B employers are strongly advised to take immediate actions to ensure adherence to the new regulations.
Employers should conduct an internal audit focusing on all active LCAs to verify that job titles, duties, wages, and work locations for H-1B employees align with what was certified and filed. It is also crucial to ensure that required wage levels are met or exceeded, and any changes to compensation, hours, or job duties should be assessed to determine if an amended LCA or H-1B petition is necessary.
Additionally, employers must ensure that the Public Access Files for every LCA are complete, well-organized, and readily accessible. Reviewing policies related to benching, nonproductive status, and terminations is essential to guarantee compliance with wage payment requirements and to ensure prompt withdrawal of LCAs and petitions when employment ends.
Failure to comply with the requirements set forth by Project Firewall could result in significant consequences for employers, including civil fines, back wage orders, and potential temporary debarment from utilizing H-1B and related immigration benefits, according to India Currents.