Overview
- Labor Department Inspector General Anthony D’Esposito announced on Wednesday that his office has launched a large-scale investigation into alleged fraud in the H‑1B temporary‑worker program and the PERM labor‑certification process.
- Investigators say they have issued dozens of subpoenas and are pursuing whistleblower leads alleging fraudulent applications, coercive wage kickbacks, forced‑labor practices and labor trafficking tied to transnational criminal networks.
- Officials publicly cited information referencing major employers, including Cognizant, but the inspector general and the White House declined to accuse any company of crimes and no charges have been filed.
- The DOL OIG is coordinating the inquiry with the White House fraud task force and other law enforcement, and investigators have asked workers and whistleblowers to provide tips through confidential channels.
- The probe could increase unannounced site inspections, documentation demands and processing delays for PERM and H‑1B cases, a risk that is especially significant because the tech sector uses the majority of H‑1B slots and Indian nationals make up the largest share of beneficiaries.