Is Your H-1B Program Ready For A DOL Audit? Understanding 'Project: Firewall'

Under the current administration, the U.S. Department of Labor (DOL), in cooperation with the Equal Employment Opportunity Commission (EEOC), has expanded its scrutiny of employers that sponsor foreign nationals via the H-1B visa program.

Through an initiative known as "Project: Firewall," the DOL's Wage and Hour Division (WHD) is using enforcement mechanisms to identify potential violations of program requirements.

This is a notable development for employers, as even those acting in good faith may face investigations or audits if systems are not in place to monitor wage levels, worksite compliance, or public file documentation. With collaboration among DOL, EEOC as well as the Department of Justice's Civil Rights Division and USCIS, employers must also be prepared to answer questions about their hiring practices and address any perceived bias involving foreign national employees.

This post outlines what "Project: Firewall" is, why it matters, and how employers can proactively maintain compliance, especially in anticipation of potential government site visits or audits.

What Is Project: Firewall?

"Project: Firewall" is a WHD initiative which "enforces H-1B visa program requirements, prioritizing investigations where there are signs of displacements, inadequate recruitment of U.S. workers, or other abuses."

Under the initiative, the department investigates whether H-1B employers are:

• Paying less than the required wage listed in the LCA
• Failing to update or file amended LCAs when job locations or duties change
• Misrepresenting job titles or classifications
• Omitting required documentation from the Public Access File (PAF)

The focus appears to be ensuring that the on-the-ground employment practices match the certified terms of the H-1B petition.

Employer obligations under the H-1B program

Employers who sponsor H-1B workers must meet strict regulatory obligations under the Immigration and Nationality Act (INA) and DOL rules, including:

Wage obligations

Employers must pay the H-1B worker the greater of the actual wage paid to similarly employed U.S. workers or the prevailing wage listed in the LCA.

Worksite notices

Required notice of the LCA must be posted at each worksite where the H-1B employee will be employed.

Public Access File (PAF) requirements

A PAF must be maintained at the employer's principal place of business or at the worksite and made available within one working day of an LCA filing. The PAF must include:

• A copy of the certified LCA
• Documentation of the prevailing wage and explaining the actual wage determination system
• Evidence of benefits offered to U.S. and H-1B workers
• Proof of required postings

Amended filings for material changes

Changes in worksite, job title, or wage may require filing an amended H-1B petition with USCIS and a new LCA.

Enforcement outcomes for employers

Potential enforcement outcomes may include the following actions from the Department of Labor:

• Wage and benefit restitution orders to impacted workers
• Civil monetary penalties
• Debarment from the H-1B program for serious or willful violations

H-1B compliance intersects with multiple business functions, including HR operations, payroll and legal. A comprehensive approach that aligns the compliance functions within these departments ensures consistency in meeting regulatory obligations across the organization.

Action steps for employers

Given the broadening focus and expanded reach of current compliance initiatives, employers should prioritize a review of internal processes, such as:

Conduct a Public Access File audit

Review all PAFs to ensure:

• They exist for each H-1B worker
• They are complete and accessible
• Job titles and locations match the petition and current employment terms

This should be done annually or whenever a material change occurs.

Align immigration data with HR and payroll systems

Ensure your HRIS and payroll systems reflect:

• The same job title, wage and location used in the H-1B petition and LCA
• Any changes, particularly for remote workers, that could trigger the need for a new LCA or amended petition

Educate managers and HR staff

Train managers and HR teams to:

• Flag changes in job duties, salaries or locations before they occur
• Understand when and how to escalate employment changes to immigration counsel
• Recognize their role in maintaining compliance after the petition is approved

Review hiring, recruiting and promotion practices

• Review job listings and posting language that include visa or foreign national sponsorship language
• Formalize hiring and selection process to create consistency
• Ensure the HR team is aware of protections and requirements related to national origin discrimination

Prepare for site visits

Government site visits, whether from the DOL, USCIS's FDNS, or Immigration and Customs Enforcement (ICE), can occur without warning.

Employers should:

• Designate a point of contact for all federal agency visits
• Ensure that front-desk and facilities staff at each corporate office location understands escalation protocols
• Maintain organized documentation in a central and accessible location

For more detailed preparation guidance, consult Garfinkel Immigration's worksite visit Q&A for employers.

Stay informed about policy changes

Monitor updates from:

• The Department of Labor's WHD H-1B enforcement page
• Experienced immigration counsel

Key compliance reminders

Employers that sponsor H-1B workers should be aware of the Department of Labor's increased focus on LCA compliance through "Project: Firewall." This initiative reflects a broader emphasis on immigration enforcement from the current administration and focuses on employers' adherence to the terms and conditions certified in their H-1B petitions and Labor Condition Applications.

By understanding the regulatory framework, maintaining accurate Public Access Files, aligning internal systems, and preparing for potential site visits, employers can meet their obligations under the H-1B program and respond effectively to evolving enforcement practices.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.