Trump Administration Widens Foreign Labour Fraud Crackdown: What H-1B Workers and Employers Should Know

Washington: The Trump administration is intensifying its crackdown on alleged fraud and abuse involving foreign-worker programmes, putting H-1B visa employers, workers and labour intermediaries under increased scrutiny.

The latest measures combine investigations by the US Department of Labor (DOL) Office of Inspector General (OIG) with new White House directions aimed at strengthening oversight of the H-1B programme.

The crackdown is focused on allegations including fraudulent visa applications, wage kickbacks, worker exploitation, fraudulent recruitment and other forms of programme abuse. Authorities have stressed that investigations are aimed at suspected violations rather than H-1B workers as a group.

What triggered the expanded crackdown?

On September 18, President Donald Trump signed an executive order directing greater interagency coordination in administering the H-1B programme.

The order directs the Departments of State, Labor and Homeland Security to consult with Commerce, Education and the Small Business Administration when assessing H-1B petitions and related applications. Agencies are also instructed to consider additional information on wages, employment conditions and specialised occupations.

The order further directs the Labor Department to begin reviewing previously submitted labour-condition applications to determine whether further action against sponsoring employers may be warranted.

H-1B and PERM investigations underway

The Labor Department's Inspector General launched a nationwide investigation in July into suspected fraud involving the H-1B and PERM employment-based immigration systems.

According to the OIG, investigators are examining allegations that employers or labour brokers submitted fraudulent applications, used wage-kickback arrangements, exploited foreign workers or engaged in fraudulent recruitment practices. The agency has encouraged both US and foreign workers to report suspected exploitation or fraud.

In August, investigators carried out field checks in Dallas, Texas, at locations associated with companies that had received hundreds of approved H-1B petitions. At one building linked to more than 500 approved petitions, investigators found multiple offices locked or apparently inactive. The OIG said the checks formed part of its broader nationwide investigation; the agency did not state that all the petitions connected to the building were fraudulent.

What does this mean for H-1B workers?

For legitimate H-1B employees, the investigation does not by itself mean that their visas or employment authorisations have been cancelled.

However, workers could face greater scrutiny if their employment arrangements involve issues such as false information in visa applications, fraudulent recruitment, unlawful wage practices, coercion or other violations.

The Labor Department has specifically encouraged foreign workers who believe they have been exploited, subjected to coercive practices or affected by fraudulent recruitment to report concerns to investigators.

Workers should therefore ensure that employment documents, job duties, salary records and other information associated with their immigration filings are accurate and consistent with the actual employment arrangement.

What should H-1B employers know?

Employers sponsoring H-1B workers are facing increased scrutiny of their recruitment and employment practices.

Under the September 18 executive order, federal agencies are directed to consider whether a sponsoring employer has laid off similarly situated US workers within the previous year or plans future layoffs that could negatively affect comparable US employees.

Employers may therefore need to pay particular attention to the accuracy of labour-condition applications, wage compliance, job descriptions, work locations and documentation supporting H-1B petitions.

The administration has also directed agencies to improve information-sharing and identify petitions where there may be a heightened risk of violations.

$100,000 H-1B fee also remains part of the wider policy shift

The fraud investigation comes alongside broader changes to the H-1B system.

A September 18 White House fact sheet said the administration was renewing a $100,000 fee requirement for certain H-1B applications, first imposed in 2025. Separately, the Department of Homeland Security has proposed making a much larger $103,265 fee permanent for certain new H-1B visas.

The proposed fee has faced legal challenges. Reuters reported that a federal judge had previously blocked the temporary fee, while litigation over the administration's authority to impose it continued.

Why the policy matters for Indian professionals

The H-1B programme is particularly significant for Indian technology and professional workers, who make up a large share of H-1B beneficiaries.

The combination of enhanced fraud investigations, additional scrutiny, visa-fee changes and tighter review of employers could affect companies that rely heavily on H-1B workers and Indian professionals seeking employment-based opportunities in the United States.

At the same time, the administration says its objective is to protect the integrity of the programme and prevent fraudulent or exploitative practices. Business groups and other stakeholders have argued that legitimate employers rely on the programme to recruit specialised talent.

For now, the investigations remain focused on suspected fraud and non-compliance. An investigation, subpoena or field inspection does not by itself establish that an employer or visa petition is fraudulent.