(UNITED STATES) The U.S. Department of Labor has launched a sweeping enforcement drive called Project Firewall, marking one of the most aggressive federal actions in years against H-1B program abuse. Announced on September 19, 2025, the initiative targets suspected wage undercutting, false job claims, and other compliance failures by employers.
On the same day, President Trump signed a proclamation that imposes a new $100,000 fee on each H-1B petition for workers seeking entry from outside the country. The fee is set to take effect at 12:01 a.m. EST on September 21, 2025, for 12 months unless extended. These moves carry immediate, far-reaching effects for Indian nationals—who account for about 71% of recent H-1B approvals—and for the companies that employ them. The Department of Labor frames the policy as a protection of U.S. workers, while employers now face sharper scrutiny and higher costs.
What Project Firewall Does
Under Project Firewall, the Department of Labor (DOL) is prioritizing cases where credible evidence suggests misuse or non-compliance. Key features include:
- Secretary-level approvals: The Secretary of Labor may personally approve investigations.
- Range of outcomes: Recovery of back wages, civil money penalties, and temporary bars on future H-1B filings for violators.
- Interagency coordination: Homeland Security and the State Department are directed to deny entry to H-1B workers tied to employers that fail to meet the new requirements.
According to analysis by VisaVerge.com, the DOL’s approach is designed to curb patterns of “benching” (keeping workers unpaid between assignments), misrepresented job duties, and wage practices that undercut U.S. labor.
“Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce,” said U.S. Secretary of Labor Lori Chavez-DeRemer.
The New $100,000 Fee and Administration Goals
The White House action pairs with the administration’s broader “America-First” framework for foreign worker programs: favor U.S. workers for high-skilled roles and crack down on employers that rely on H-1B labor in ways that appear to replace or underpay local hires.
- The proclamation requires a $100,000 fee for petitions seeking to bring H-1B workers from outside the United States.
- The fee acts as a gatekeeper: entry will be denied to H-1B workers whose employers have not paid the fee.
- Agencies are instructed to raise wage expectations and focus on higher-skilled, higher-paid roles in future admissions.
- Limited exemptions may be available if the Secretary of Homeland Security finds the case to be in the national interest.
Immediate Effects on Indian Nationals and Workers
Indian professionals in technology and other high-skill sectors face immediate concerns tied to their employers’ compliance status.
- If an employer is investigated under Project Firewall, workers may face:
- Delays, denials, or increased questioning, even if the worker complied with rules.
- For those abroad: the $100,000 fee, tighter vetting, and potential processing slowdowns.
- For those already in the U.S.: possible site visits and document reviews.
- Changing employers is an option but carries risk if the new sponsor is also scrutinized.
- For families, ripple effects may include extended separation or uncertain timelines.
Enforcement Mechanisms and Employer Exposure
DOL officials emphasize enforcement of existing law rather than shutting out talent. The DOL has outlined potential investigative activities:
- Unannounced site visits
- Checks on job locations
- Reviews of wage levels promised versus paid
- Verification of job duties listed in filings
When violations are found, the DOL will pursue civil penalties and back pay. The government is coordinating with other agencies to ensure consistent and rapid enforcement.
Which Employers Are Most Affected
Impact varies by employer type:
- Large technology firms: May be able to absorb the $100,000 per-petition cost, but will face more paperwork and potential delays.
- Outsourcing firms and smaller consultancies: Likely to be hit hardest—especially those that move workers between client projects.
- The enforcement model targets “body shop” practices such as:
- Mismatched job roles
- Non-payment during assignment gaps
- Inconsistent worksite reporting
These combined pressures may change hiring strategies, shift roles to domestic workers, or push projects offshore.
Policy Changes Overview
- Project Firewall: DOL enforcement initiative to prevent H-1B abuse and protect U.S. workers. Grants the Secretary of Labor authority to approve investigations and seek back wages, civil penalties, and temporary H-1B bars.
- $100,000 fee: Presidential proclamation imposes a fee on each H-1B petition for workers outside the U.S., effective September 21, 2025 for 12 months unless extended. Entry can be denied if the fee is unpaid.
- Higher wage expectations: Agencies are instructed to prioritize higher-skilled, higher-paid H-1B workers; limited exemptions may be granted by DHS for national interest cases.
Practical Advice for Applicants and Workers
For individuals and applicants:
- Confirm employer compliance with wage rules, job location reporting, and record-keeping.
- Keep copies of your job offer, contract, pay stubs, and communications about job duties and worksites.
- Ask your employer how they plan to handle the $100,000 fee if your case involves entry from abroad.
- Prepare for longer processing and be ready to respond quickly to requests for evidence.
- Monitor policy updates in case courts or agencies change enforcement steps.
VisaVerge.com reports enforcement attention will likely extend to contracts, pay records, and evidence that assigned job duties match filings.
Practical Advice for Employers
Employers face higher costs and stricter checks. Recommended actions:
- Review wage levels and ensure they meet or exceed required thresholds.
- Ensure job titles and duties match filings and maintain clear, organized records.
- Re-evaluate benching practices and third-party placement models.
- Expect site visits, audits, and document requests—especially for companies with heavy third-party placements.
The DOL urges employers and workers to consult its official resources at the U.S. Department of Labor for compliance guidance and enforcement updates.
Industry Reaction and Broader Labor Market Effects
Responses are mixed:
- Labor advocates: Welcome the crackdown as a means to raise wages and protect U.S. workers.
- Large tech firms: Warn that sharp fees and complex rules could slow hiring for critical roles.
- Outsourcing firms: Say enforcement plus cost may curtail placements and shift projects offshore.
- Immigration attorneys: Expect more audits, site visits, and documentary requests, especially for firms using third-party placements.
Over the coming months, outcomes could include:
- If enforcement raises wages and reduces misuse: more opportunities for U.S. workers in high-skill fields.
- If companies cannot fill roles or absorb costs: some work may move abroad or remain unfilled.
Uncertainties and Legal Challenges
Many open questions remain:
- How many employers will be investigated, and how will they be selected?
- Will enforcement be uniform across industries?
- Could legal challenges alter timelines or limit provisions?
- Will the $100,000 fee be extended beyond the initial 12 months?
Smaller firms fear being easier audit targets, while large companies are expected to adapt with fewer visible disruptions.
Key Takeaways
- Project Firewall signals tighter control and faster penalties for H-1B missteps.
- The $100,000 fee, combined with entry denials for unpaid cases, establishes a clear enforcement line.
- With Indians comprising roughly 71% of recent H-1B approvals, the human impact is immediate: families may delay travel, workers may reconsider offers, and employers will revisit hiring plans.
Practical short checklist:
– Keep records tight.
– Review contracts and wage compliance.
– Ask employers how fee obligations will be handled.
– Track legal and agency developments closely.
For official guidance and enforcement updates, consult the DOL’s site: U.S. Department of Labor.
This Article in a Nutshell
On September 19, 2025, the Department of Labor launched Project Firewall, a robust enforcement program targeting H-1B abuses such as wage undercutting, misrepresented job duties, and benching. The initiative grants Secretary-level authority to prioritize investigations, seek back wages, impose civil penalties, and recommend temporary bars on H-1B filings. The same week, a presidential proclamation establishes a $100,000 fee for H-1B petitions for workers entering from abroad, effective September 21, 2025 for 12 months. Agencies will coordinate to deny entry for employers that fail to meet requirements and raise prevailing wage expectations. Indian nationals—about 71% of recent H-1B approvals—face immediate vetting, potential delays, and higher costs. Employers, especially outsourcing firms, must reassess wage practices, documentation, and placement models. Workers should keep detailed records, confirm employer compliance, and prepare for longer processing times. The policy’s broader effects may include higher wages, hiring shifts to domestic labor, or project offshoring; legal challenges and implementation details remain uncertain.
