Project Firewall: The DOL’s New Crackdown on H-1B Compliance

In a significant shift for high-skilled immigration enforcement, the U.S. Department of Labor (DOL) recently announced the launch of Project Firewall. Announced on September 19, 2025, this initiative is designed to "safeguard the rights, wages, and job opportunities of highly skilled American workers" by aggressively rooting out fraud and abuse in the H-1B visa program.

For employers and foreign workers currently navigating the Labor Certification (PERM) or H-1B process, Project Firewall represents a new era of federal oversight.

What is Project Firewall?

Project Firewall is a multi-agency enforcement initiative led by the DOL’s Wage and Hour Division, the Employment and Training Administration (ETA), and the Office of Immigration Policy. It aims to ensure that employers prioritize qualified U.S. workers and adhere strictly to the legal requirements of the H-1B program.

For the first time in the department’s history, the Secretary of Labor will personally certify the initiation of investigations into employers where "reasonable cause" exists to suspect non-compliance.

Under the new framework of Project Firewall, the Department of Labor has introduced Secretary-Certified Investigations, allowing the Secretary of Labor to leverage existing legal authority to start investigations directly.  

This initiative is a comprehensive "whole-of-government" approach to inter-agency coordination. The DOL is actively partnering with the Department of Justice (DOJ) Civil Rights Division, the Equal Employment Opportunity Commission (EEOC), and U.S. Citizenship and Immigration Services (USCIS). This collaborative network ensures that information is shared across agencies in an attempt to enforce federal immigration and labor laws with the full weight of the government.

Finally, employers found to be in violation of these standards will face strict penalties, including the mandatory payment of back wages to affected workers and the assessment of substantial civil money penalties. Perhaps most significantly, non-compliant companies risk debarment, a penalty that bans an employer from participating in the H-1B program—and potentially other visa categories—for a prescribed period.

Mismatches of Prevailing Wages and Job Duties

The government is looking for "mismatches" in the Labor Condition Applications (LCAs) and Prevailing Wage Determinations (PWDs) —situations where an employer lists a low-level role but requires high-level certifications or complex management duties.

Under Project Firewall, if the DOL suspects an employer is "under-leveling" a job to pay a lower wage while requiring senior-level skills, that employer could become a target for a Secretary-certified investigation.  

What Should Workers and Employers Do?

• Audit Job Descriptions: Ensure that the duties listed in the ETA 9141 perfectly align with the SOC code and the wage level requested.  Also ensure that all LCAs contain the correct wage level and job site information. 

• Pay the Prevailing Wage: Pay the wage level that matches the educational, experience, and other special requirements for the position.

• Site Visits: Employers must educate its staff to prepare well for site visits. Immigration investigators can and will use information obtained during site visits to challenge the wage level in the H-1B petitions.

• Maintain Records: Employers must keep impeccable Public Access Files (PAF) and payroll records, as Project Firewall increases the likelihood of a surprise audit.

The Bottom Line

Project Firewall is a clear signal that the DOL is moving from a passive "reviewer" of applications to an active "enforcer" of labor standards. For those in the H-1B and PERM pipeline, compliance is no longer just about getting an approval—it’s about ensuring every detail of the application is in compliance with the law and regulation. 

(Immigration laws and policies change regularly.  If you have any questions regarding this article, please visit www.1visa1.com to schedule a legal consultation.)