From Reactive to Proactive Enforcement
On September 19, 2025, the U.S. Department of Labor (DOL) announced Project Firewall, a new enforcement initiative under which the agency will actively investigate employers for compliance with H-1B program requirements. Historically, H-1B investigations were generally reactive — meaning the DOL typically opened reviews only after a worker filed a complaint. Under Project Firewall, the DOL now has authority to launch broad audits on its own based on reasonable cause, credible information, or industry-wide patterns.
Project Firewall represents one of the most significant shifts in H-1B oversight in decades. It gives the DOL broader latitude to examine employer compliance across wage practices, job classifications, recordkeeping, and public access files, even without a formal complaint. See news release.
What Enforcement Could Focus On
Although the DOL has not published a detailed list of specific investigative priorities, the following areas are expected to receive heightened attention:
- Wage Level vs. Job Duties Employers who file an H-1B using a lower wage level (such as Level 1) but assign the worker more advanced, specialized, or higher-responsibility tasks may face questions about whether the filing accurately reflects the role.
- O*NET Job Code Selection Enforcement may focus on employers who choose an occupational code with a lower prevailing wage when the employee’s actual duties align more closely with a different, higher-wage job classification.
- Large or H-1B–Dependent Employers Companies with a high volume of H-1B employees or heavy reliance on the H-1B program may be among the first selected for proactive review.
- Recordkeeping, Benefits, and Transparency Public access file accuracy, wage documentation, adherence to notice requirements, and consistency in benefits offered to U.S. and H-1B workers remain core compliance obligations.
- Third-Party Placements and Contracting Models Businesses that place workers at client sites or use layered vendor relationships may be asked to demonstrate control, supervision, and wage compliance throughout the assignment.
Required Wage Standard
Under federal rules, H-1B employers must pay the higher of:
- Prevailing Wage, or
- Actual Wage (the rate paid to employees in similar roles, with equivalent qualifications, at the same location).
An H-1B employee cannot be paid less than a U.S. worker performing the same job with comparable experience and qualifications. Any gap between the wage level filed and the job duties performed — or any misalignment between the O*NET code chosen and the nature of the work — can create compliance exposure.
Recordkeeping & Public Access Files
Employers must maintain a public access file for each LCA, available within one business day of filing, including:
- The certified LCA
- Rate of pay for the H-1B worker
- Description of the wage-setting system
- Prevailing wage determination and its source
- Proof of compliance with notice requirements
- Benefits summary for U.S. and H-1B workers
- Corporate change documentation (if applicable)
Failure to properly maintain these files can be a standalone basis for penalties.
Potential Penalties
Employers found noncompliant may face:
- Monetary fines per violation
- Back wage payments to affected workers
- Temporary or permanent debarment from the H-1B program
- Referrals to other federal agencies for further action
These penalties underscore the importance of proactive, not reactive, compliance.
What Employers Should Do Now
The key takeaway is that DOL enforcement is moving from reactive to proactive. To prepare, employers should:
- Review wage levels of H-1B employees against similarly situated U.S. workers.
- Audit public access files to confirm completeness and accuracy.
- Ensure the wage level filed matches the actual complexity of the employee’s duties.
- Evaluate whether evolving job responsibilities require amended filings.
- Confirm the O*NET code selected accurately reflects the job role.
- Prepare for closer scrutiny if your company employs large numbers of H-1B workers.
Internal self-audits and refreshed compliance procedures will significantly reduce risk and ensure readiness for potential DOL inquiries.