The U.S. Department of Labor’s Office of Inspector General (OIG) announced on July 8, 2026, a sweeping investigation into fraud and abuse across the H-1B and PERM (Program Electronic Review Management) systems, escalating what has become the Trump administration’s most aggressive employment-based immigration enforcement effort to date.
The probe is being coordinated with the Department of Homeland Security, the Department of Justice, and the White House Task Force to Eliminate Fraud, which is championed by Vice President J.D. Vance. According to DOL Inspector General Anthony D’Esposito, investigators have already issued dozens of subpoenas to employers and labor brokers suspected of manipulating the visa system. The agency says it has uncovered schemes involving fraudulent labor certification applications, coercive wage-kickback arrangements, and the displacement of U.S. workers through below-wage labor. Indian IT services giant Cognizant is among the companies reported to be under scrutiny.
The new investigation builds on “Project Firewall,” a DOL initiative launched in September 2025 that has already opened roughly 175 investigations into suspected H-1B violations. The Department also maintains a public H-1B debarred/disqualified list of employers, most recently updated on June 29, 2026, which bars sanctioned companies from filing future petitions.
What it means for applicants. For legitimate H-1B and PERM applicants, heightened enforcement generally means more scrutiny of employer filings, closer review of Labor Condition Applications and prevailing-wage compliance, and potentially longer adjudication timelines. Workers who believe they have been exploited — for example, through unpaid “benching,” wage kickbacks, or fraudulent filings — can report concerns to the DOL OIG Hotline at 1-800-347-3756 or online at oig.dol.gov/hotline.htm. Employees at firms that end up debarred may need to seek new sponsorship, so it is wise to keep copies of all filed petitions and approval notices.
While the enforcement wave is aimed at bad actors, the broader signal is clear: employment-based immigration filings will face more rigorous review in 2026. Applicants and sponsors should ensure every petition is accurate, well-documented, and fully compliant.
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Source: X (Twitter) @DOLOIG