Project Firewall: DOL Signals Increased H-1B Enforcement with New Employer Flyer

By C. Matthew Schulz

New DOL Flyer Signals Renewed Focus on H-1B Compliance

The U.S. Department of Labor (DOL) has released a new employer flyer explaining Project Firewall, its H-1B visa enforcement initiative focused on protecting U.S. workers and ensuring employer compliance. The flyer summarizes employer obligations and highlights the DOL’s authority to investigate H-1B violations. A copy of the flyer is available here.

While framed as compliance guidance, the timing and content of the flyer suggest something more. It arrives amid sustained messaging from the DOL and other agencies emphasizing heightened scrutiny of the H-1B program.

Reactions from Major Media, SHRM, and AILA

Major media and professional organizations have interpreted Project Firewall as a meaningful shift toward more aggressive enforcement. Bloomberg Law reported that the DOL has launched roughly 175–200 investigations using new authority that allows proactive, Secretary-certified investigations, rather than relying solely on complaints.

The Society for Human Resource Management (SHRM) likewise warned employers of increased audits and enforcement activity tied to Project Firewall, urging HR teams to review wage, worksite, and posting compliance.

The American Immigration Lawyers Association (AILA) circulated the DOL flyer and flagged Project Firewall as an enforcement development employers should take seriously.

What Is Project Firewall?

Project Firewall is a DOL initiative launched in September 2025 to strengthen enforcement of labor protections connected to the H-1B program. Its stated purpose is to prevent misuse of the program in ways that undercut U.S. workers’ wages, working conditions, or job opportunities.

A key feature of Project Firewall is the DOL’s increased use of Secretary-certified investigations, which allow investigations to begin based on reasonable cause rather than employee complaints alone. This expands both the scope and speed of potential enforcement actions.

How Project Firewall Fits Within Existing Law

Project Firewall does not create new statutes or regulations. Instead, it relies on long-standing provisions of the Immigration and Nationality Act, DOL regulations governing Labor Condition Applications (LCAs), and enforcement authority long delegated to the Wage and Hour Division.

Under these rules, employers already must: 

• pay the required wage,
• use the correct work locations,
• maintain public access files, and
• comply with notice and non-displacement requirements. 

Project Firewall represents a change in enforcement posture, not a change in the legal standards themselves.

The Distinct and Overlapping Roles of DOL and USCIS

The H-1B program is administered jointly by the DOL and U.S. Citizenship and Immigration Services (USCIS), but their roles differ. 

The DOL focuses on labor protections, including wages, working conditions, and compliance with LCA attestations.

The USCIS adjudicates the visa petition. That includes evaluating eligibility, job specialty, employer–employee relationships, and maintenance of status. 

Project Firewall increases the likelihood that DOL findings may intersect with USCIS actions, resulting in an expected increase in petition denials, revocations, or referrals.

Signals of Increased Enforcement Activity

Public statements and reporting suggest Project Firewall already drives increased enforcement. 

Government sources have cited hundreds of active investigations and significant back-wage assessments in the early months of the initiative.

The release of an employer-facing flyer is also telling. Historically, such outreach often precedes broader enforcement activity by signaling expectations and reducing employers’ ability to claim misunderstanding or lack of notice.

Potential Penalties for Employers and Third-Party Worksites

Employers found in violation of H-1B requirements may face back-wage liability, civil monetary penalties, and debarment from the H-1B program. In serious cases, matters may be referred to other agencies for additional enforcement.

Project Firewall also raises risks for third-party companies where H-1B workers are placed on-site. These "host companies" may face scrutiny related to control, supervision, and compliance with LCA terms, particularly where multiple entities share responsibility for the worker’s day-to-day activities.

Impact on H-1B Employees

For H-1B employees, Project Firewall can create uncertainty even where no wrongdoing exists. Investigations may disrupt projects, delay extensions or transfers, and increase the likelihood of site visits or requests for evidence.

At the same time, Project Firewall is designed to protect foreign workers from underpayment and improper working conditions. Employees may benefit from increased wage enforcement but face practical consequences when employers reassess risk tolerance.

Project Firewall in the Broader Policy Landscape

Project Firewall does not operate in isolation. Its impact is compounded by other recent policy and practice changes, including sharply increased filing fees, the new $100,000 H-1B fee for certain employers, and the wage-weighted H-1B selection system.

Project Firewall comes at a time when U.S. employers are also navigating expanded social media vetting, longer consular processing times, and heightened scrutiny at multiple stages of the immigration process. Together, these developments significantly raise the compliance and cost stakes for H-1B usage.

Alternatives and Risk-Mitigation Strategies

In this environment, employers should reassess their overall talent-mobility strategy. Options that may reduce exposure include recruiting existing H-1B workers through cap-exempt transfers, or using alternative classifications and solutions, such as: H-1B1, E-3, TN, L-1, or O-1 nonimmigrant visas, employment-based immigrant visas, and off-shoring jobs formerly held by H-1B workers to countries with more friendly immigration/labor/tax laws.

Conclusion

A diversified immigration strategy, combined with proactive compliance reviews, is the best practice for U.S. employers to meet business needs while minimizing enforcement risk. Project Firewall underscores the importance of planning, documentation, and ongoing compliance—not just successful petition filings.