DOL Audits of H-1B Sponsorships Likely to Increase Under “Project Firewall”

The H-1B visa classification was established as a nonimmigrant, temporary worker program to aid U.S. employers unable to fill highly specialized positions (those requiring a bachelor’s degree or its equivalent).  The regulations were designed to protect U.S. as well as H-1B employees by implementing procedures to ensure wages and duties are nondiscriminatory. These regulations include U.S. Department of Labor (DOL) certification that the position being offered to a foreign national meets the established prevailing wage through a Labor Condition Application or “LCA.” Under the regulations, employers are also required to keep detailed documentation for each H-1B worker, including Public Access Files (PAF), certified LCAs, payroll data, and other job and employee-related documentation.

Historically, DOL audits and enforcement have been scarce unless triggered by outside complaints. However, the DOL unveiled Project Firewall in September 2025 with a stated objective to “safeguard the rights, wages, and job opportunities of highly skilled American workers” through federal agency partnerships.  In collaboration with USCIS, the EEOC and the Civil Rights Division of the Department of Justice, the DOL’s Office of Immigration Policy, Employment and Training Administration, and Wage and Hour Division are seeking to strengthen enforcement through increased employer audits and investigations.  For the first time, the U.S. Secretary of Labor will also directly authorize the opening of an H-1B investigation if reasonable cause exists to believe an H-1B employer is not in compliance or is abusing the program. 

The implementation of Project Firewall signals the DOL’s H-1B compliance investigations are likely to become more preemptive, rigorous, and documentation-focused.  The DOL reported that as of November 2025, it had launched 175 investigations.  H-1B employers should prepare for potential audits to avoid penalties for non-compliance, which can include the repayment of back wages, payment of fines, and/or debarment from the H-1B program.

H-1B employers should take proactive measures to ensure compliance, including the following:

  • Routinely audit DOL and Public Access Files for every LCA.
  • Verify payroll and wage compliance on a pay-period basis to ensure H-1B worker pay is consistent with the corresponding LCA.
  • Ensure LCA notice postings are correctly posted at each worksite and properly retain records.
  • Train Human Resource, Legal, and Management teams on H-1B documentation obligations.
  • Designate an H-1B compliance lead and develop standard protocols and procedures in the event of a DOL audit.

If your business has questions regarding H-1B/DOL compliance or strategies to prepare for a DOL audit or investigation, contact one of the attorney’s on Burr & Forman’s Immigration Team.

Posted in: Immigration
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