The U.S. Department of Labor’s Office of Inspector General (DOL-OIG) signaled a dramatic escalation of its anti-fraud campaign on September 20, warning that “loopholes are closing” for shell employers, sham job sites and so-called “visa mills” that abuse the H-1B program. Inspector General Anthony D’Esposito posted on X that raids, arrests and criminal referrals will follow as investigators fan out to verify that work sites listed on visa petitions actually exist and employ the sponsored worker. The message caps months of field checks in Dallas, Newark and Silicon Valley, where agents discovered locked offices and vacant suites tied to hundreds of approved H-1B petitions. DOL-OIG is coordinating with USCIS fraud-detection units and with Homeland Security’s Center for Countering Human Trafficking, reflecting a whole-of-government approach championed by the White House Task Force to Eliminate Fraud. Employers already on DOL’s public “willful violator” list face enhanced scrutiny; several have been served with subpoenas seeking payroll records, lease agreements and proof that H-1B workers receive the prevailing wage. For legitimate businesses, the immediate impact is compliance pressure. Immigration counsel are urging companies to audit their public-access files, confirm that wage levels match Labor Condition Applications and verify that any remote-work addresses have posted the required notices. Staffing firms that place workers at client sites must track every location change and file amended petitions promptly—failure to do so could trigger debarment from the H-1B or PERM programs. The crackdown also heightens personal risk for foreign professionals who accept positions with little on-site supervision. If an investigation finds the underlying job to be fictitious, the beneficiary could see status revoked and may even face accusations of willful misrepresentation. Universities and incubators that partner with early-stage tech companies are preparing guidance for international graduates on how to vet potential employers. Expect processing delays as USCIS funnels more H-1B cases to fraud-detection units, and watch for collateral effects on business-visitor (B-1 in lieu of H) adjudications, which often rise when the H-1B path narrows.
Source: Hindustan Times
