As part of the White House Proclamation restricting the entry of certain foreign nationals as H-1B workers into the U.S., the U.S. Department of Labor (DOL) has launched an H-1B enforcement initiative called “Project Firewall” to “safeguard the rights, wages, and job opportunities of highly skilled American workers by ensuring employers prioritize qualified Americans when hiring workers.” The initiative will also “hold employers accountable if they abuse the H-1B visa process.”
What is Project Firewall?
Announced on September 19, 2025, Project Firewall enables:
Secretary-certified investigations – In order to maximize H-1B program compliance, the Secretary of Labor will now “personally certify the initiation of investigations … if reasonable cause exists that an H-1B employer is not in compliance.” This represents a significant change in DOL’s enforcement role and oversight of the H-1B program, as investigations may be launched regardless of whether an outside complaint has been received.
Increased focus by DOL on H-1B program compliance – In order to maximize H-1B program compliance, investigations of wage underpayment or wage theft, displacement of workers by H-1B hires, fraudulent labor condition applications (LCAs) and the misrepresentation of job duties or worksite locations will be given priority.
Employer Penalties – Employers found in violation may be required to pay back wages owed to affected workers, assessed civil monetary penalties, and/or debarred for a temporary period of time from using the H-1B program in the future. While the penalties listed are not new, the frequency and level of penalties likely to be assessed may increase.
Cross-agency coordination of efforts – In order to leverage “the full force of the federal government,” DOL will share information and coordinate with other relevant government agencies, including U.S. Citizenship and Immigration Services (USCIS), the U.S. Department of Justice (DOJ) and the Equal Employment Opportunity Commission (EEOC).
What does this mean for Employers?
Employers should expect:
Increased scrutiny of occupational classifications and wages identified on LCAs and H-1B petition filings.
Increased risk of investigations prompted by DOL secretary certifications, USCIS referrals, employee complaints, and/or information-sharing across other federal agencies.
Investigations may also be triggered by a reduction in force (RIF) followed by an increase in H-1B hiring, a significant difference between a posted wage and the actual wage offered to an H-1B employee, or the placement of H-1B employees at an off-site location not listed on the LCA.
Recommendations
As a precautionary step, employers with H-1B employees should conduct a self-audit of H-1B records, including Public Access Files (PAFs), LCAs, and LCA posting notices, as well as review payroll records and PAFs to ensure H-1B employees are being paid in accordance with their LCA. Investigations are likely to be document-focused.
Updated trainings to HR personnel and managers should also be provided to ensure that employers are in compliance with federal regulations and prepared if contacted by DOL.