The Department of Labor has announced a new initiative called Project Firewall, aimed at strengthening enforcement of H-1B program rules.
Introduced on September 19, 2025, the initiative signals an aggressive shift in oversight of employers that use the H-1B route. The program expands the Department’s investigative tools by giving the Secretary of Labor authority to certify investigations where there is reasonable cause to believe that an employer is noncompliant.
What is Project Firewall?
Project Firewall builds on existing DOL authority but adds a new layer of enforcement. Until now, most H-1B audits and investigations were triggered by complaints or random reviews. Under the initiative, the Secretary of Labor can authorize investigations directly when there is a credible basis for concern. This gives the Department greater flexibility to launch cases proactively, without waiting for a complaint.
The initiative will also involve greater interagency collaboration. DOL has confirmed that it will work closely with USCIS, the Department of Justice and the Equal Employment Opportunity Commission to share information and coordinate enforcement. The result will be a broader compliance net that extends beyond wage issues, with the potential, through interagency cooperation, to encompass related issues such as discrimination or fraud.
Employers should therefore expect an increase in investigations, including site visits and audits of labor condition applications and public access files.
Penalties for Noncompliance
Employers found to be in breach of H-1B obligations could face serious consequences under Project Firewall. The Department has confirmed that remedies will include repayment of back wages to affected workers, significant civil money penalties and in some cases debarment from the H-1B program. These sanctions are consistent with existing authority but are expected to be applied more frequently as the volume and intensity of investigations increase.
The heightened enforcement environment raises the likelihood of reputational damage as well. DOL has stated that high-profile cases may be publicized, reinforcing the government’s aim of deterring unlawful practices and reassuring the public that H-1B rules are being strictly applied.
Implications for Employers
Project Firewall marks a significant escalation in H-1B oversight. Employers using the program need to ensure that their wage levels, public access files and recordkeeping practices are fully compliant. Audits may now be triggered without warning, and the use of Secretary-certified investigations means that even employers with no complaints on record could be selected for review. Interagency cooperation also broadens the scope of potential issues, exposing companies to scrutiny beyond wage compliance.
Need Assistance?
Project Firewall creates a more challenging environment for H-1B employers. Even small errors in wage documentation or public access files could now attract enforcement action. Given the scale of potential penalties and the reputational impact of an investigation, it is important for employers to take proactive steps to review their compliance.
Compliance strategies should be reviewed and enhanced to account for the heightened investigation and enforcement environment. Employers should review labor condition applications, confirm that actual wages align with required wage levels and verify that public access files are accurate and complete. Training HR staff and legal teams to respond promptly to government inquiries will also be critical in avoiding penalties and disruption.
Speak to our US attorneys for guidance on preparing for Project Firewall, mitigating risk and ensuring that your H-1B program practices meet all regulatory requirements.
Author
Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.
Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.