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Labor Department Launches 'Project Firewall' to Police H‑1B Employers

Federal investigators will pair case work with cross‑agency data sharing to prioritize qualified Americans in high‑skill hiring.

Overview

  • The Labor Department says it will open investigations, levy fines, recover back wages, assess civil penalties, and temporarily bar violators from foreign‑labor programs.
  • Project Firewall formalizes coordination with the EEOC, the Justice Department’s Civil Rights Division, and USCIS to detect fraud and discriminatory hiring tied to H‑1B use.
  • The initiative follows a new $100,000 fee on first‑time H‑1B petitions ordered in September, a policy now facing a legal challenge from business groups including the U.S. Chamber of Commerce.
  • Technology and research employers anticipate tighter scrutiny that could affect recruiting plans, compliance costs, and timelines for filling specialty roles.
  • Political divides sharpened as figures such as Ron DeSantis and Marjorie Taylor Greene attacked the program while President Trump recently defended limited reliance on specialized foreign talent; Indian nationals hold roughly 73% of H‑1B visas.