The U.S. Department of Labor (DOL) has launched Project Firewall, a new enforcement initiative aimed at strengthening compliance within the H-1B visa program and ensuring employers follow federal hiring and wage regulations. According to the DOL, this project is designed to uphold fairness in the U.S. labor market by ensuring employers give qualified American workers priority while maintaining accountability for those who misuse the H-1B process.
For the first time in history, the Secretary of Labor will personally certify investigations into employers suspected of noncompliance, an unprecedented move that signals an increase in federal oversight. These investigations will focus on cases where there is reasonable cause to believe that H-1B regulations are being violated. Employers found to be in violation may face civil penalties, back wage payments, and temporary bans from using the H-1B program. The DOL also confirmed it will collaborate with other federal agencies to share information and enforce compliance laws more effectively.
What Employers Should Know
Project Firewall highlights the need for all employers hiring under the H-1B program to review and ensure their compliance with labor laws, including:
- Wage Requirements: H-1B workers must be paid the higher of either the prevailing wage or the actual wage paid to similarly employed U.S. workers.
- Labor Condition Application (LCA): Employers must have a certified LCA from the DOL before filing an H-1B petition and must notify U.S. workers at the worksite.
- Public Access File (PAF): Employers must maintain publicly accessible records that demonstrate compliance.
- Working Conditions: Hiring H-1B workers cannot adversely affect U.S. employees’ working conditions.
- Benching Rules: Employers must continue paying H-1B workers during periods of nonproductive status unless the employee is on voluntary leave.
The DOL’s Wage and Hour Division (WHD) will lead these enforcement actions, conducting audits and investigations when credible information or complaints arise.
What This Means for Employers and Foreign Professionals
While Project Firewall primarily targets employers, its impact could also extend to foreign workers currently in the U.S. under H-1B status or those seeking to transition to other visa categories. Increased scrutiny may lead to slower case processing or requests for additional documentation.
At Zhang-Louie PLLC, we closely monitor these developments to help employers and professionals stay compliant and proactive. Our team assists clients in understanding regulatory changes, maintaining compliance with federal labor standards, and exploring alternative pathways, like O-1 or EB-2 NIW, for long-term stability in the U.S.
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