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What Tech Employers Need to Know About DOL's New Enforcement Initiative
Yasin Bilgehan Akalan
Attorney at Law
Immigration Law Expert – Akalan Law Firm
As part of the H-1B Visa Project Firewall, at least 175 investigations conducted by Department of Labour inspectors have resulted in the calculation of total back wages amounting to $15 million. The Project Firewall represents the Department of Labor’s most aggressive enforcement initiative to date, launched on September 19, 2025. The Department of Labor is launching Project Firewall as a sweeping enforcement initiative targeting H-1B visa abuses and compliance failures. Tech companies relying on H-1B workers now face unprecedented scrutiny, so employers must understand the compliance requirements and penalties.
Many employers are affected as multiple agencies,including USCIS (U.S. Citizenship and Immigration Services), EEOC (Equal Employment Opportunity Commission), and DOJ (Department of Justice ), are now involved in H-1B enforcement, increasing compliance risks and oversight. The DOL recovered more than $274 million in back wages for over 163,000 workers in a variety of industries in 2023. This shows the scale of enforcement actions.
Project Firewall introduces heightened investigations into H-1B program violations and aims to protect American jobs by preventing visa abuse and prioritizing employment for U.S. workers. Employers may face civil penalties, back wage payments, and temporary bans from sponsoring H-1B visas. Project Firewall expands federal oversight of the H-1B program and authorizes investigations even in the absence of external complaints.
This piece explains what Project Firewall means for tech employers and how to ensure compliance. Project Firewall also reflects a broader push by the Trump administration to restore the American Dream for domestic workers by addressing public concern that H-1B programs have undercut wages and opportunities.
Project Firewall marks a fundamental change in how the Department of Labor oversees the H-1B program. If there are reasonable grounds to believe that H-1B conditions have been violated, the Minister of Labour will deem it appropriate to initiate an investigation.. This secretary-certified authority represents the first time in DOL history that investigations receive this level of direct approval. Labor Secretary Lori Chavez-DeRemer has emphasized the importance of protecting American workers and ensuring that high-skilled jobs benefit U.S. citizens.
The initiative targets specific violations that affect tech employers. Investigators focus on wage underpayment and displacement of U.S. workers. The DOL’s Project Firewall increases scrutiny on technical roles to prevent the displacement of U.S. workers. They also look at fraudulent labor condition applications and misrepresentation of job duties or worksite locations. DOL coordinates enforcement with the Department of Justice Civil Rights Division and U.S. Citizenship and Immigration Services. The Department of Labor also works with other agencies, such as the Equal Employment Opportunity Commission and the Department of Justice, to coordinate compliance investigations and enforcement efforts related to the H-1B visa program.
The DOL had launched numerous investigations as part of the Firewall Project. These investigations get into whether employers comply with wage requirements and recruitment obligations. The Wage and Hour Division plays a key role in enforcing wage and hour laws within the H-1B program and identifying violations.
Tech companies face heightened scrutiny because the industry dominates H-1B visa usage. Employers and existing visa holders now face stricter scrutiny, with increased audits and investigations. Existing visa holders may also face additional challenges or restrictions due to increased oversight.
Employers found in violation face severe consequences. DOL may recover back wages owed to workers and assess civil money penalties. The agency can impose debarment from the H-1B program for a prescribed period, typically at least one year. The initiative protects both American workers and H-1B employees from wage theft and exploitation.
The $100,000 application fee for new H-1B petitions is intended to deter companies from bypassing domestic workers. H-1B petitions, including new filings, extensions, and renewals, are subject to new fees and regulatory updates. Employers must pay at least 95% of the prevailing wage for the role. The employer files a Labor Condition Application (LCA) with the Department of Labor, attesting to wage compliance. Initial approval for an H-1B visa can be up to three years, with extensions possible up to six years. The initiative may reshape the H-1B landscape and redefine who gets access to high-paying jobs in the United States.
Securing an H-1B visa for firewall implementation requires navigating standard “specialty occupation” requirements and intensive new enforcement protocols under Project Firewall. The role must require at least a bachelor’s degree in a specific field, such as Computer Science or Engineering. Securing an H-1B visa under the DOL’s Project Firewall requires demonstrating a “specialty occupation” and paying prevailing wages. The professional must possess a degree specifically related to the firewall project’s technical needs. The role must involve the theoretical and practical application of highly specialized knowledge, such as network security architecture or advanced cybersecurity protocols.
Tech employers must pay attention to compliance practices now because of Project Firewall. Violations can disrupt operations and damage reputation beyond financial penalties.
The regulatory environment driving Project Firewall reflects a significant shift in how the federal government enforces the H-1B visa program. Launched as a sweeping enforcement initiative aimed at protecting American workers, Project Firewall marks a turning point in the Department of Labor’s approach to compliance and oversight. Under the Trump administration, federal agencies—including the Department of Labor and the Equal Employment Opportunity Commission (EEOC)—have joined forces to target employers who may be preferring foreign workers over American workers, raising concerns about national origin discrimination and violations of prevailing wage standards.
This coordinated effort means that employers must now personally certify investigations and demonstrate strict adherence to H-1B program requirements. The focus is not only on wage and hour compliance but also on ensuring that employment practices do not disadvantage U.S. workers or violate anti-discrimination laws. As part of this broader shift, the Department of Labor is issuing new rules and guidance to clarify program requirements and strengthen enforcement. Employers should expect ongoing updates and evolving compliance obligations as federal agencies continue to refine their strategies for protecting both American and foreign workers under the H-1B visa program.
Staying ahead in this regulatory environment requires employers to closely monitor guidance from the Department of Labor and other federal partners, implement robust compliance programs, and be prepared for more rigorous investigations. The stakes are higher than ever, and non-compliance can result in significant penalties, reputational harm, and loss of access to the H-1B program.
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Tech employers must get a certified Labor Condition Application for each geographic area where H-1B workers perform duties. The LCA establishes prevailing wage requirements and triggers posting obligations at every worksite.
Employers must pay H-1B workers the higher of the prevailing wage or the actual wage paid to similar U.S. workers. This requirement applies from day one of employment.
Employers must then create a Public Access File within one business day of filing the LCA. The file must contain the certified LCA, wage rate documentation, prevailing wage determination and benefits summaries. These records must remain available for one year beyond the last date of H-1B employment under that LCA.
Notice requirements mandate posting at two conspicuous locations for 10 business days before or within 30 days of filing the LCA.
H-1B dependent employers face additional obligations. They must attest to non-displacement of U.S. workers during the 90-day period before and after petition filing. These employers must also demonstrate good faith recruitment efforts before hiring H-1B workers.
Department of Labor investigations uncovered serious violations through Project Firewall’s original enforcement wave. Investigators assessed $15 million in back wages across at least 175 ongoing investigations by November 2025. Common violations include paying H-1B workers far less than promised and failing to notify authorities of worker terminations. Others list non-existent worksites on applications and bench workers without pay. If violations are found, affected workers may be entitled to back wages and other remedies, highlighting the importance of compliance for protecting employee rights.
Specific red flags trigger Project Firewall scrutiny. Investigators prioritize employers who displace U.S. workers and fail to recruit Americans in good faith. They also target those who give preference to H-1B candidates over qualified U.S. applicants and retaliate against workers reporting violations. Misrepresenting job duties or working conditions draws attention too. The hiring of H-1B employees shortly after the rapid dismissal of American workers is a noteworthy development for regulatory bodies.
Employers in the technology sector should develop proactive strategies to mitigate risks. Internal audits of H-1B applications should be conducted periodically. In each pay period, payroll records should be checked regularly to ensure compliance with prevailing wage conditions . Teams within the company that will respond to audit processes should be trained on H-1B document obligations and audit procedures. An H-1B compliance officer should be appointed to ensure continuous regulatory compliance.
Teams within the company responsible for responding to audits should be trained on H-1B document requirements and audits. Debarment from the H-1B program lasts at least one year and can extend to five years for willful violators.
With Project Firewall reshaping the landscape of H-1B enforcement, employers must rethink their global talent strategies to remain competitive and compliant. The H-1B visa program continues to be a vital tool for attracting foreign talent to fill highly skilled jobs, but the heightened scrutiny means that companies must be more diligent than ever in meeting program requirements and avoiding violations.
Employers should review their job postings, hiring practices, and wage structures to ensure they are not inadvertently favoring foreign workers over qualified American applicants. This includes conducting regular audits of recruitment processes and compensation to ensure fairness and compliance with prevailing wage standards. Companies may also want to explore alternative immigration pathways, such as the EB-1A green card, to diversify their talent acquisition strategies and reduce reliance on the H-1B visa.
A successful global talent strategy in the age of Project Firewall requires a proactive approach to compliance, transparency in employment practices, and a commitment to equity for all workers. By prioritizing these principles, employers can minimize the risk of enforcement actions, protect their reputation, and continue to attract the best talent from around the world. As the regulatory environment continues to evolve, staying informed and adaptable will be key to maintaining a strong and compliant workforce.
Project Firewall just needs quick action from tech employers. So companies must implement rigorous compliance practices to protect their H-1B programs. Regular internal audits, accurate wage payments and proper documentation prevent pricey violations. The initiative imposes penalties that extend beyond financial costs. Employers should designate compliance guides and train personnel on documentation requirements. Proactive measures ensure operations continue without disruption while protecting American workers and H-1B employees from exploitation.
https://www.dol.gov/newsroom/releases/osec/osec20250919
https://www.dol.gov/agencies/whd/immigration/h1b/projectfirewall
https://www.dol.gov/agencies/whd/fact-sheets/62j-h1b-worksite
https://www.dol.gov/agencies/whd/fact-sheets/62g-h1b-required-wage
https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs62F.pdf
https://www.law.cornell.edu/cfr/text/20/655.760
https://www.dol.gov/agencies/whd/fact-sheets/62m-h1b-notice
https://www.dol.gov/agencies/whd/fact-sheets/62n-h1b-displacement
https://www.epi.org/policywatch/dol-launches-project-firewall-to-enforce-h-1b-program-rules-at-least-175-investigations-underway/
https://www.dol.gov/agencies/whd/immigration/h1b
https://www.dol.gov/agencies/whd/fact-sheets/62u-h1b-enforcement-authority
https://www.dol.gov/newsroom/releases/whd/whd20260126
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