The U.S. Labor Department has suspended four companies from H-1B hiring until 2028 for systemic program abuse. Under Project Firewall, investigators have uncovered wage-kickback schemes resulting in fifteen million dollars in recovered wages. These enforcement actions coincide with a new wage-weighted lottery system designed to prioritize high-skilled talent and prevent the displacement of American workers through cheap-labor substitution and fraudulent visa practices.
- Four employers face two-year bans from the H-1B visa program for labor violations.
- Authorities reported one hundred seventy-five investigations and fifteen million dollars in back wages assessed.
- The enforcement action implements Project Firewall to proactively target fraud and wage-kickback schemes.
The Labour Department updated its list of four “willful violators” on July 1, 2026, barring the companies from new H-1B visa hiring for two years.
The listed employers are GowraTech, LLC; Renotek Group LLC; Seeloz, Inc.; and Sherwood at Mount Dora, Inc., doing business as Sherwood Academy. Each company has a separate debarment period.
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The restrictions prevent the employers from filing new H-1B petitions during their respective periods. Workers already employed by the companies could face immigration consequences if their employers’ petitions are revoked.
The action forms part of an enforcement effort involving the Department of Labor’s Office of Inspector General and the DHS Task Force to Eliminate Fraud. Anthony P. D’Esposito, the Labor Department’s inspector general, said the investigation would extend beyond paperwork violations.
“For far too long, fraudsters believed they could game the U.S. employment-based visa system and get away with it. They were wrong. This isn’t just paperwork fraud—it’s the exploitation of vulnerable workers, forced labor, the displacement of American workers, and abusive human trafficking. As the Inspector General, my top priorities are exposing fraud, protecting American workers, and putting criminals in cuffs.”
D’Esposito made the statement on July 8, 2026. The four companies’ bans now run on staggered schedules.
The four employers face staggered two-year bans
| Company | Debarment period |
|---|---|
| GowraTech, LLC | May 12, 2025 – May 11, 2027 |
| Renotek Group LLC | August 8, 2025 – August 7, 2027 |
| Seeloz, Inc. | March 4, 2026 – March 3, 2028 |
| Sherwood at Mount Dora, Inc. (dba Sherwood Academy) | May 26, 2026 – May 25, 2028 |
GowraTech’s debarment ends first, on May 11, 2027. Sherwood Academy’s restriction lasts the longest, ending May 25, 2028.
Employees at the affected companies are being encouraged to consider self-sponsored pathways or transfers to cap-exempt employers. A petition revocation could place an employee’s immigration status in jeopardy.
Project Firewall lets labor officials initiate investigations
The department launched Project Firewall in late 2025. The initiative allows the secretary of labor to personally certify an investigation into an H-1B employer when “reasonable cause” exists, rather than waiting for a third-party complaint.
Secretary of Labor Lori Chavez-DeRemer said some employers had underpaid foreign workers, bypassed qualified Americans and required U.S. employees to train their replacements.
“Too often, we’ve seen companies exploit this program by paying foreign workers below-market wages, bypassing qualified Americans, or even forcing U.S. employees to train their own replacements. That’s unacceptable, and it stops now. Launching Project Firewall will help us ensure no employers are abusing H-1B visas at the expense of our workforce.”
Chavez-DeRemer released the statement Sept. 19, 2025, and reaffirmed it in July 2026. Federal authorities reported more than 175 active investigations into H-1B fraud as of July 2026.
Those investigations have produced more than $15 million in back wages assessed for exploited workers. The enforcement effort focuses on alleged wage-kickback schemes and other forms of employer abuse.
USCIS changed selection rules for the FY 2027 season
The four-company action coincides with a new registration system for the FY 2027 season, which began in March 2026. U.S. Citizenship and Immigration Services implemented a wage-weighted lottery that prioritizes higher-paid and higher-skilled applicants.
Matthew Tragesser, a USCIS spokesman, said employers had exploited the former random selection process by seeking workers at lower wages than they would pay American employees.
“The existing random selection process of H-1B registrations was exploited and abused by U.S. employers who were primarily seeking to import foreign workers at lower wages than they would pay American workers. The new weighted selection will better serve Congress' intent. without allowing the abuse that was harming American workers.”
Tragesser made the statement Dec. 23, 2025. The weighted approach is intended to reduce incentives for what officials describe as cheap-labor substitution.
A separate $100,000 surcharge on some new H-1B petitions remains under litigation. The surcharge has been applied to some petitions and has increased sponsorship costs for large firms.
Future filings bring five years of added LCA requirements
Companies designated as willful violators must follow stricter Labor Condition Application requirements for five years after their debarment ends. Those obligations continue beyond the two-year filing prohibition.
The Labor Condition Application governs employer commitments concerning wages and working conditions. The Office of Inspector General says the enforcement actions protect American jobs by addressing wage-kickback schemes and ensuring the program is used for genuine labor shortages at prevailing market rates.
The listed employers cannot submit new petitions during the periods shown in the table. Their future filings will also face the added LCA requirements after the bans expire.
Workers at the four companies face separate concerns. A petition revocation could affect an employee’s immigration status, while a transfer or another immigration route may require action before current authorization changes.
The latest debarment dates fall in 2028. Seeloz’s restriction ends March 3, 2028, followed by Sherwood Academy’s on May 25, 2028.
