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 DOL will actively investigate employers for compliance with H-1B program requirements. Historically, investigations were generally reactive—triggered only when an employee filed a complaint. Under this new framework, the agency is signaling it may initiate audits on its own. See news release.
What Enforcement Could Focus On
Although the DOL did not specify every area under review, the following are likely flashpoints:
- Misalignment between wage level and job duties: For example, filing an H-1B at Level 1 wage but assigning the employee advanced or specialized tasks.
- Improper O*NET code selection: Using a job code with a lower prevailing wage when the actual duties fit a different code with a higher wage.
- Large, H-1B–dependent employers: Firms with significant numbers of H-1B workers may face early scrutiny.
- Wage & benefit parity, public access files, and documentation: These remain foundational elements of LCA compliance.
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).
This means an H-1B worker cannot be paid less than a U.S. worker in the same job with comparable qualifications and experience. Any discrepancy between what was filed and what is performed—or between the O*NET code chosen and the actual duties—can raise compliance concerns.
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)
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
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.
- 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.