Big Trouble for H-1B? US Probe Targets Fake Jobs and Visa Abuse

Big Trouble for H-1B? US Probe Targets Fake Jobs and Visa Abuse

The H-1B visa programme could undergo significant changes over the next year as the Trump administration expands a nationwide investigation into alleged foreign-labour fraud, worker exploitation and possible human trafficking.

Labor Department Inspector General Anthony D’Esposito said the foreign-labour visa system could look substantially different within a year, signalling increased scrutiny and enforcement against companies and practices investigators suspect of abusing the programme.

“I think that the foreign labor visa program is going to look very different 365 days from now than it does today,” D’Esposito said in an interview posted by Benny Johnson on X.

D’Esposito said the investigation goes beyond paperwork violations and administrative irregularities, with federal authorities building what he described as a broader case involving alleged misuse of the foreign-labour system.

“This is not a paperwork accounting issue, that this is real,” he said, adding that investigators were “laying out our case” and using significant resources to show the American public what they believe is taking place.

The Labor Department’s Office of Inspector General has already taken enforcement action as part of the investigation. On September 18, the agency said investigators had issued dozens of subpoenas and carried out search warrants at multiple locations.

The department also said visa applications involving IT services company Cognizant and software firm Cloudera had been suspended pending a criminal investigation.

D’Esposito has separately called for tougher scrutiny of the H-1B system.

In a post on X, he wrote, “A secure border means locking every door, including the H-1B back door,” while referring to alleged fake employers, sham jobs, visa mills and worker exploitation.

The investigation comes amid wider efforts by the Trump administration to tighten oversight of the H-1B programme.

A September 18 executive order directs the Departments of Labor, Homeland Security and State to consider whether employers seeking H-1B workers have carried out layoffs affecting similarly situated US workers.

It also directs the Labor Department’s Wage and Hour Division to review previously filed Labor Condition Applications and determine whether further action is required.

The administration has also extended restrictions on the entry of certain H-1B workers through September 21, 2027. Under the proclamation, covered petitions for workers outside the US generally require a $100,000 payment, subject to specified exceptions.

The White House has said the earlier restriction was followed by a 92 per cent decline in H-1B registrations from the largest US IT outsourcing firms. It has also reported a sharp fall in requests for consular processing. These figures are based on administration-reported data.

D’Esposito did not say that the H-1B programme would be abolished. His remarks instead suggest that investigations, company-level enforcement and possible policy changes are likely to continue over the coming year.

RELATED ARTICLES

Tags: