The U.S. Department of Labor’s Office of Inspector General has launched a nationwide investigation into alleged fraud in the H-1B specialty-occupation and PERM labor-certification programs, officials confirmed on July 9. Investigators have already issued “dozens of subpoenas,” and Labour Department Inspector General Anthony D’Esposito publicly cited IT-services giant Cognizant as one company under scrutiny. The probe will examine accusations of fake recruitment, wage kickback schemes, and “benching” of visa holders without pay—practices that can undercut U.S. workers and exploit foreign talent. Vice President J.D. Vance called the effort “our biggest H-1B cleanup yet,” warning “foreign fraudsters” that U.S. jobs are for Americans first. No charges have been filed, and Cognizant said it will cooperate fully, noting it has not been accused of wrongdoing. However, past enforcement waves have led to multimillion-dollar settlements and debarments for violators. The OIG is encouraging whistle-blowers to use its hotline, suggesting the investigation could expand to staffing firms and smaller consultancies. Corporate immigration teams should prepare for audit letters, ensure public-access files are complete, and review third-party placement practices. Employers that rely heavily on H-1B talent may face processing delays as USCIS increases vetting in tandem with the probe.
Source: Business Standard
