As a reminder for all employers considering sponsoring an employee via the H-1B Visa Program, the U.S. Department of Labor (DOL) has launched Project Firewall, an enforcement initiative designed to strengthen oversight and prevent misuse of the H-1B process.
What is Project Firewall? Project Firewall shifts enforcement from complaint-based investigations to proactive audits. For the first time, the Secretary of Labor can personally certify investigations based on “reasonable cause,” even without a formal complaint.
- The program focuses on wage compliance, proper recruitment practices, and accurate documentation.
Why It Matters: Employers across industries rely on H-1B talent, but under Project Firewall, compliance will be aggressively enforced.
- Violations can lead to back wage payments, civil penalties, public disclosure, and even debarment from the H-1B program.
- Multiple agencies will collaborate with the DOL to ensure compliance (including USCIS, DOJ, EEOC, and DHS).
Key Risks for Employers:
- Financial: New supplemental fees and potential penalties.
- Operational: Loss of access to global talent if debarred.
- Reputational: Publicized violations can harm credibility.
Action Steps to Stay Compliant:
- Monitor Updates: Stay informed on regulatory changes and DOL guidance.
- Communicate with H-1B Staff: Keep employees aware of new rules and implications.
- Verify Wage Compliance: Pay the higher of the prevailing wage or actual company wage.
- Maintain Accurate Records: Keep complete Public Access Files, certified LCAs, and proof of notice postings.
- Engage Legal Counsel: Work with immigration attorneys to review records and develop compliance strategies.
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