DOL Investigates H-1B Visa Program Abuse

The Department of Labor (DOL) has launched nearly 200 investigations aimed at potential abuses within the H-1B visa program as part of its mission to “combat discrimination against American workers.” This information was shared by agency officials.

Labor Secretary Lori Chavez Delemer is leading these investigations and has personally approved them. This marks a historic moment as it is the first time a Secretary of State has done so.

“We are utilizing every tool we have to eliminate H-1B visa abuse and protect high-skilled American jobs,” Chavez Delemer stated. She emphasized her commitment to ensuring accountability in the H-1B process, highlighting the administration’s focus on prioritizing American workers.

For years, there have been reports of significant fraud within the H-1B visa system. It’s not uncommon for companies to terminate American employees after requiring them to train foreign workers, primarily from India, often without facing any serious consequences.

The H-1B visa program has historically been dominated by applicants from India and China. In 2024, over 70% of approved H-1B visas were awarded to Indian nationals, who are predominantly male. The displaced American workers often include older individuals, many of whom are women, and typically hold more senior positions with better benefits.

Chavez Delemer mentioned that the DOL is currently investigating at least 175 cases following this announcement. A recently launched initiative, Project Firewall, aims to tackle fraud and abuse in the program.

In her announcement, she emphasized the administration’s vow to stop practices that undermine American workers. President Trump had recently authorized measures intended to decrease fraud and bar foreign workers from entry-level jobs that are needed by U.S. graduates. Notably, a new proclamation introduced a one-time fee of $100,000 for H-1B visa applications.

Since Project Firewall’s inception in late September, DOL officials have uncovered several troubling findings. These include:

• Foreign H-1B visa holders receiving significantly lower wages compared to their U.S. counterparts.
• A situation where an H-1B visa employee’s supposed work location was nonexistent.
• An instance in which an employer failed to inform federal authorities about the termination of a visa.

Despite some foreign applicants holding advanced degrees, they are often compensated far less than their qualifications would suggest, effectively forcing American workers to settle for lower wages to remain competitive. Investigators from the Wage and Hour Division noted that in cases where work locations were misrepresented, foreign H-1B workers were unaware of the details listed on their Labor Condition Application (LCA).

Currently, there are over $15 million in unpaid wages tied to unresolved cases, and this figure is expected to rise as additional fraud and abuse cases come to light. Companies found guilty of violating the H-1B program must repay back wages as part of their settlement with the DOL.

While names of companies or individuals involved in the investigations could not be disclosed yet, more information is anticipated upon the investigation’s completion. An analysis of historical government data suggests that U.S. companies exploit the H-1B program as a means of outsourcing—first laying off American workers, bringing in foreign replacements, and then, often years later, offshoring jobs entirely to India.

Last year, Ron Hira, a prominent H-1B visa researcher, published a study for the Economic Policy Institute examining wage data from HCL Technologies, a major outsourcing firm in India, which caters to global clients like Microsoft and Google. The findings revealed troubling wage disparities, consistent with long-standing criticisms of the program.

The study concluded that H-1B workers, both in India and the U.S., earn considerably less than their American counterparts who are not on H-1B visas. Specifically, HCL was found to pay its H-1B employees as much as 47% less than U.S. workers, thus violating its own visa application assurances regarding wage standards.

Furthermore, another study from the previous year by Deloitte indicated that foreign H-1B visa workers earned around 10% less than American employees in equivalent positions.