Project firewall: US department of labor targets H-1B visa abuse

The US Department of Labor's (DOL) new initiative, Project Firewall, aims to crackdown on H-1B visa abuse, marking a significant shift in how the US enforces high-skilled immigration regulations. Announced on September 19, the program has already triggered a wave of concern among companies that rely on foreign talent.

For the first time in over three decades, the DOL can proactively launch investigations into suspected H-1B and Labor Condition Application (LCA) violations based on tips from third parties, bypassing the traditional requirement for worker complaints, NewsWeek writes.

"Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce," said US Secretary of Labor Lori Chavez-DeRemer in the program’s official statement. "By rooting out fraud and abuse, the Department of Labor and our federal partners will ensure that highly skilled jobs go to Americans first."

The new approach broadens enforcement powers, with penalties reaching up to $51,500 per violation and multiyear bans on new visa petitions for serious breaches. Early guidance suggests the program will focus on industries heavily reliant on H-1B workers, such as IT outsourcing firms, which may face intensified scrutiny and unannounced audits.

Legal experts, including Mary Pivec of Grossman Young & Hammond, are advising employers to review both current and past H-1B filings.

"Employers should review both their current practices and past filings, because past behavior could increasingly be under the microscope," said Jennifer Behm, partner at Berardi Immigration Law.

The initiative reflects a shift from a complaint-driven system to a proactive, government-led enforcement model.

"The reason why Project Firewall is interesting," said Angelo Paparelli, partner at Vialto Law, "is that it revives a long-dormant authority of the Secretary of Labor personally to designate a case for investigation."

As companies brace for potential audits and legal challenges, the economic stakes are high. Technology and consulting sectors, in particular, are feeling the pressure. According to data from the National Foundation for American Policy, major IT firms have seen H-1B petition denial rates above 30% in the past, with some fearing further disruption to foreign talent pipelines.

The policy also coincides with a new $100,000 application fee for H-1B filings, aiming to deter bulk filings from outsourcing firms. While some see Project Firewall as a necessary crackdown on fraud, others worry it could drive innovation and investment overseas.

"When skilled workers can’t get visas to come to the US, companies often take the work to them," said Britta Glennon of the University of Pennsylvania, citing studies showing that tighter H-1B caps led firms to increase overseas hiring.

The next few months will reveal whether Project Firewall becomes a long-term enforcement model or a temporary shift in the volatile debate over US immigration policy.

"The message from Project Firewall is clear: review your files before the government does," said Angelo Paparelli.

By Sabina Mammadli