Federal Enforcement Expansion Targets H-1B and PERM Programs
The Trump administration has rolled out a robust expansion of federal enforcement activities aimed at addressing suspected fraud and abuse within the H-1B and PERM programs. The Department of Labor’s Office of Inspector General (DOL-OIG) has confirmed that investigators have already issued several subpoenas as part of a nationwide inquiry into allegations of visa fraud, labor trafficking, and misuse of foreign labor programs.
Investigation Scope and Allegations
According to DOL Inspector General Anthony D’Esposito, the investigations focus on claims that certain employers and labor brokers have submitted fraudulent H-1B and PERM applications, exploited foreign workers through illegal employment practices, and leveraged employment-based visa programs in ways that disadvantage U.S. workers, including citizens, lawful permanent residents, asylees, and refugees. D’Esposito also noted that the investigations are exploring potential connections between specific labor regimes, human trafficking networks, and transnational criminal enterprises. These remarks reflect the government’s investigative stance rather than definitive findings of misconduct.
Broader Industry Oversight Expected
The DOL has indicated that its investigation will extend beyond the technology sector to encompass various industries, including healthcare—specifically physician offices and nursing homes. Employers who sponsor H-1B workers or submit PERM applications should brace for increased scrutiny in their practices.
Areas of Review for Employers
Employers within the H-1B and PERM programs should prepare for a thorough review of several areas, including:
- Compliance with Labor Condition Application (LCA) requirements and maintaining required public access files
- General wage determination and compliance with labor standards
- Documentation concerning PERM recruitment efforts and necessary audit files
- Work locations, duties, and wage payment practices
- Third-party placement arrangements and employer-employee relationships
- Recruitment practices involving foreign nationals and indicators of labor trafficking or coercion
Proactive Compliance Measures Recommended
Given that subpoenas have already been issued, employers should act under the assumption that enforcement efforts are actively underway. Instead of waiting for a government inquiry, it may be prudent for employers to proactively examine their immigration compliance programs. Key areas for self-assessment include:
- Auditing the accuracy and completeness of H-1B public access files
- Ensuring that employees are fulfilling roles specified in applications
- Reviewing compliance with wage laws and payment practices
- Assessing PERM recruitment documentation and supporting records
- Verifying organizational records and work structures
- Evaluating relationships with staffing agencies and third-party vendors
- Training employees to identify and report potential compliance issues
Media Reports and Ongoing Monitoring
Various media outlets have recently suggested that Cognizant may be under investigation, although no formal determinations of fraud have been made, and the company has not been found liable for H-1B or PERM infractions as part of this inquiry. Employers are advised to stay vigilant regarding future developments and refrain from drawing conclusions based solely on media coverage.
Government Priorities on Compliance Enforcement
The federal government has reiterated that compliance with the H-1B and PERM programs remains a top enforcement priority. While many employers effectively use these programs to fulfill legitimate workforce needs, recent announcements reveal that federal agencies are intensifying their investigations into suspected cases of fraud, worker exploitation, and human trafficking.
Continuing Support for Employers
WR Immigration Services will closely monitor developments in enforcement actions, agency guidance, and litigation related to these efforts. Employers with questions concerning H-1B, PERM, or broader immigration compliance are encouraged to consult experienced immigration attorneys for tailored advice.
