1 day ago
US Labor Department Expands H-1B Fraud Investigation Beyond Tech
The US government is investigating whether some companies misuse H-1B work visas.
These visas let certain foreign workers take specialized jobs in the United States.
Officials first focused heavily on technology companies, but they now say healthcare and other industries are also being examined.
They allege that some employers and labor brokers filed false applications or paid workers too little.
Officials also say some workers were pressured or exploited.
The investigation involves whistleblowers, public tips, and subpoenas.
The government says the crackdown is meant to protect American workers.
Some proposed changes could make it harder for H-1B workers to enter or remain in the country.
These changes include higher fees, a wage-based selection system, and possibly removing a job-loss grace period.
The US Department of Labor’s inspector general expanded an H-1B and PERM fraud investigation beyond technology companies to healthcare and other industries.
Investigators say employers and labor brokers allegedly submitted fraudulent applications, underpaid workers, and displaced American workers.
H-1B processing and PERM filings were suspended for Cognizant and Cloudera, according to the article.
Officials say whistleblowers, public tips, and subpoenas are helping identify alleged visa mills and other abuses.
The Trump administration has also pursued higher fees, wage-weighted H-1B selection, and tighter rules for foreign workers.
- Who
- The United States Department of Labor’s Office of Inspector General, the Trump administration, employers, labor brokers, H-1B workers, and affected US workers.
- What
- Authorities expanded an investigation into alleged H-1B visa and PERM fraud, including claims of false applications, wage exploitation, and displacement of US workers.
- Where
- The investigation is nationwide in the United States and covers technology, healthcare, and other industries.
- When
- The investigation was announced in July, with further warnings issued on September 15, 2026; Project Firewall began in September 2025.
- Why
- Officials say they want to prevent employers from misusing visa programs, exploiting foreign workers, and replacing US workers with lower-paid foreign labor.
Administration’s enforcement position
Potential effects on visa workers and employers
Purpose of the H-1B program
Administration’s enforcement position
Officials argue the program should support the US economy and should not allow companies to replace American workers with low-wage foreign labor.
Potential effects on visa workers and employers
The article describes proposed restrictions and enforcement actions that could affect lawful foreign workers, including those who lose jobs and need time to find new sponsors.
Fraud investigation
Administration’s enforcement position
The Labor Department says alleged fraud includes false applications, wage kickbacks, worker exploitation, and so-called visa mills, justifying wider investigations.
Potential effects on visa workers and employers
Employers and workers subject to the expanded scrutiny may face suspended processing, subpoenas, delays, or increased compliance pressure; the article does not report their direct responses.
Visa policy changes
Administration’s enforcement position
Supporters of the administration’s approach favor higher fees and wage-weighted selection to prioritize higher-paid and higher-skilled applicants.
Potential effects on visa workers and employers
The proposed changes could reduce access to H-1B visas and make it harder for some existing visa holders to remain in the United States after losing employment.
Key facts
- Investigation scope
- H-1B and PERM systems, expanding beyond technology to healthcare and other industries.
- Companies named
- Cognizant and Cloudera had H-1B processing and PERM filings suspended, according to the article.
- Officials involved
- The Labor Department Office of Inspector General, the White House Task Force to Eliminate Fraud, the Justice Department’s Civil Rights Division, and Labor Department officials.
- Reported enforcement
- The inspector general said his office had issued dozens of subpoenas to employers suspected of H-1B fraud.
- Earlier initiative
- Project Firewall was launched in September 2025 to address alleged displacement of American workers with cheaper foreign labor.
- Investigations reported
- The Labor Department said the administration launched nearly 200 investigations into companies suspected of misusing H-1B visas.
- Proposed policy changes
- The administration has pursued higher H-1B fees, wage-weighted selection, and a proposal to remove the 60-day grace period after job loss.
Quotes
Anthony D’Esposito
US Department of Labor inspector general
“The H-1B should not exist to replace American workers with low-wage foreigners. It should exist to enrich the American economy.”
financialexpress.com
“The H-1B fraud machine is being exposed. One layer, one lead and one fraudster at a time.”
financialexpress.com
US Labor OIG
Official account of the Department of Labor’s Office of Inspector General
“H-1B fraudsters…count your days.”
financialexpress.com
Sources
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