US probes H-1B visa for fraud, plans 'very different' scheme in a year

Investigators are examining alleged fraud and worker exploitation as Washington steps up H-1B enforcement

The US H-1B visa programme could undergo significant changes over the next 12 months as federal investigators intensify their scrutiny of alleged fraud, sham employment arrangements and the exploitation of foreign workers.

 

US Department of Labor Inspector General Anthony D’Esposito has warned that the foreign-worker visa system could look substantially different a year from now. His remarks, reported on Sunday (India time), come amid a broader crackdown by the Donald Trump administration on the use of H-1B visas by employers.

 

“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 on X. He also said investigators were building a case around alleged abuses of the foreign-labour system.

  

However, the comments do not amount to an announcement that the H-1B programme will be discontinued. The administration has not specified the full extent of the changes that could follow the investigation.

 

What is the investigation about?

The investigation is examining alleged misuse of the foreign-worker system, including practices involving fake employers, jobs that do not exist and arrangements that could expose workers to exploitation.

 

D’Esposito has indicated that the inquiry goes beyond administrative errors or incomplete paperwork. The focus is on whether employers and other entities have used the programme in ways that violate labour or immigration rules.

 

For Indian professionals, the distinction matters. The H-1B visa allows US employers to hire foreign nationals for jobs requiring specialised knowledge and, generally, a relevant bachelor’s degree or equivalent qualification. Indian technology professionals are among the major groups using this route to work in the US.

 

If investigations lead to stricter checks on employers, job offers and employment arrangements, companies sponsoring foreign workers could face additional scrutiny. However, the precise compliance requirements and any new restrictions will depend on the measures formally adopted by US authorities.

 

Trump administration tightens H-1B oversight

The investigation is taking place alongside other measures intended to strengthen oversight of the H-1B system.

 

On September 18, the White House issued an executive order directing the Departments of Labor, Homeland Security and State to improve coordination in administering the programme.

 

The order calls for authorities to consider whether an employer sponsoring an H-1B worker has directly or indirectly laid off US employees in comparable positions during the preceding year, or plans future layoffs affecting similarly placed American workers. It also provides for greater scrutiny of labour-condition applications and compliance with existing requirements.

 

These checks could increase the compliance burden on employers, particularly companies that rely on overseas recruitment or third-party staffing arrangements. Employers may need to pay closer attention to their hiring practices, wage obligations and records supporting H-1B applications.

 

The measures do not, by themselves, establish a blanket prohibition on hiring foreign professionals.

 

$100,000 payment requirement extended until 2027

Another significant measure is the extension of restrictions on the entry of certain H-1B workers.

 

A presidential proclamation dated September 18 extends the existing restrictions for another 12 months, until September 21, 2027. Under the measure, covered petitions involving H-1B workers outside the US generally require a $100,000 payment, subject to specified exceptions. The Department of Homeland Security can grant exceptions in cases that meet the national-interest criteria set out in the proclamation.

 

The requirement should not be interpreted as a universal $100,000 fee for every H-1B visa holder or every existing visa. Its application depends on the terms of the proclamation and the circumstances of the petition.

 

The extension adds to the uncertainty facing employers planning to recruit overseas workers and professionals considering a move to the US.

 

What should Indian H-1B applicants know?

For Indian professionals, the immediate concern is whether the investigations will result in new restrictions or more demanding checks.

 

Applicants with prospective US employers should monitor announcements from the US Citizenship and Immigration Services (USCIS), the Department of Labor and the Department of State. They should also verify that their prospective employer has a genuine job opening and is complying with the applicable visa and employment rules.

 

Those already working in the US should distinguish between announced policy changes and possible future measures. D’Esposito's remarks indicate that further changes are being considered, but they do not establish that existing visa holders must take any new action.

 

The coming year could bring changes to employer oversight, application scrutiny and enforcement. Until the administration announces specific additional measures, however, the extent of those changes remains uncertain.