On July 8, 2026, the Department of Labor’s Office of Inspector General announced a nationwide initiative to investigate fraud and strengthen compliance oversight across employment-based visa programs. This is a separate effort from Project Firewall, the H-1B enforcement initiative the Wage and Hour Division launched last September. The OIG’s initiative casts a wider net, covering PERM labor certifications alongside H-1B petitions, and it isn’t limited to any particular industry or region.
The scope extends well beyond companies that directly sponsor foreign workers. Staffing agencies, IT consulting firms, labor contractors, recruiters, and any organization that places sponsored employees at third-party worksites are all within reach of this initiative. Investigators are expected to look at fraudulent H-1B petitions and PERM filings, misrepresentation during recruitment, wage kickback arrangements, unlawful benching of H-1B workers without pay, and labor exploitation connected to employment-based visa programs.
A key part of this initiative is a whistleblower hotline the DOL is promoting to workers and the public. That means investigations are increasingly likely to originate from an employee complaint rather than a random audit, which raises the stakes for how employers handle workplace concerns before they escalate. Employers that place H-1B workers at client sites should expect particular attention, since the DOL can compare the worksite location, job duties, and wages reported on the Labor Condition Application against what’s actually happening on the ground. PERM sponsors face similar exposure, particularly around whether recruitment was conducted properly and whether the sponsored position still matches what was described in the labor certification.
Given the breadth of this initiative, now is a reasonable time for employers to take stock of their immigration compliance files before an investigator asks to see them.
Compliance Areas Worth a Second Look
- Confirm LCA Public Access Files are complete, current, and readily available.
- Review PERM recruitment records to make sure every step was documented and retained.
- Verify sponsored employees are working at approved locations, doing the duties described in their filings, and being paid correctly.
- Assess compliance practices for any staffing agencies, recruiters, or labor brokers your organization works with.
- Make sure employees have a clear, internal way to raise concerns before they turn into external complaints.
A genuine review now, rather than a quick glance, puts employers in a far better position if an inquiry comes later.
FAQs
Is this the same as Project Firewall?
No. Project Firewall is run by the DOL’s Wage and Hour Division and is focused on H-1B enforcement. This OIG initiative is broader, covering PERM as well as H-1B, and applies across industries and regions.
Does this only affect large companies that sponsor many workers?
No. The initiative applies to any employer that sponsors H-1B or PERM cases, along with staffing agencies, recruiters, and labor contractors involved in those placements.
What triggers an investigation under this initiative?
Investigations can start from a whistleblower complaint through the DOL’s hotline or from the agency’s own review activity, rather than only from a random audit.
What happens if worksite details don’t match what was filed?
A mismatch between the location, duties, or wages on file and what’s actually happening can raise compliance concerns and may require an amended filing or corrective action.
Should we involve immigration counsel before an investigation happens, not just during one?
Yes. A compliance review now, while there’s no active inquiry, gives an employer time to fix gaps on its own terms rather than under investigation pressure.
If you or your family members have questions about how these immigration matters may affect you, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by visiting our website at www.visaserve.com for more information.