Project Firewall: What Employers and H-1B Workers Need to Know

The U.S. Department of Labor recently launched Project Firewall, a sweeping enforcement initiative aimed at ensuring compliance with H-1B visa rules. Employers who previously operated with looser oversight now face closer scrutiny, particularly over wages, recruiting practices, and whether they prioritized U.S. workers as the law requires.

Below is what Project Firewall aims to do, what it targets, what the penalties might be, and how employers and applicants should prepare and respond.

What Is Project Firewall?

Project Firewall is an enforcement program announced September 19, 2025, by the Labor Department. It is designed to root out abuses in the H-1B system and protect U.S. workers by enforcing existing legal standards more proactively. Some features of this program include:

• The Secretary of Labor will personally certify investigations into H-1B employers suspected of non-compliance.
• Focus areas include employer wage compliance (paying H-1B workers the prevailing wage or similar to U.S. workers in comparable roles), legitimate hiring and recruitment practices, and providing equal benefits.
• Multiple agencies will coordinate: the Wage and Hour Division, the Employment and Training Administration, Office of Immigration Policy, plus the DOJ, USCIS, and EEOC.

What Triggers an Investigation and What Penalties Might Follow

Employers could face investigations under Project Firewall if there is “reasonable cause” to suspect abuse of the H-1B visa program. Employers may be looked at for underpaying, failing to recruit U.S. workers in good faith, or otherwise violating program rules.

If a violation is found, potential consequences include:

• Back wages owed to U.S. or H-1B workers harmed by the violation
• Civil money penalties
• Debarment from sponsoring H-1B visas for a period of time

Why Employers & Workers Should Pay Attention

For many employers, Project Firewall marks a significant shift: rather than waiting for complaints or problems to be reported, the Labor Department is now moving proactively. Even well-intentioned employers may find past practices under review.

Jennifer Behm, Esq., Partner at Berardi Immigration Law, remarks:

“Project Firewall raises the stakes for H-1B compliance. Employers should review both their current practices and past filings, because past behavior could increasingly be under the microscope.”

For workers, the initiative could mean stronger enforcement of rights under existing law, ensuring wages, benefits, and recruiting fairness are more than just promises.

What Employers and Applicants Should Do Now

Use the following steps to reduce risk and prepare for Project Firewall:

1. Audit past H-1B petitions — review wage levels offered, recruiting efforts, and whether U.S. workers were considered in good faith.
2. Ensure ongoing compliance — make sure job postings, offer letters, benefits, and other employment practices meet program requirements.
3. Document everything — retain records of recruitment, resumes of U.S. applicants, reasons for rejecting U.S. candidates, evidence of wage parity.
4. Stay informed — rules and interpretations may change. Be ready for guidance or additional enforcement from Labor, USCIS, or other agencies.

Project Firewall FAQs

Can Project Firewall apply retroactively to past H-1B filings?
Yes, it may. Because federal agencies may review past behavior under new enforcement initiatives, employers with past practices that did not strictly comply with wage or recruitment standards could face scrutiny even for historical cases.

Does Project Firewall affect renewals or only new visa petitions?
While much of the focus is on new petitions and new employer filings, existing employers must still make certain that renewals and ongoing employment follow the law, particularly around wages and benefits. Non-compliance in ongoing relationships may also trigger investigations.

What defenses or exemptions might an employer have?
Employers who can show they complied with prevailing wage requirements, conducted good faith recruitment, and offered fair benefits are less likely to be penalized. Documentation is critical. There may also be legal challenges or exemptions in certain sectors; consulting counsel is essential.

Stay Safe Around Project Firewall

Project Firewall represents a turning point in how the government is enforcing H-1B visa rules. What was once a compliance-driven system is becoming a proactive enforcement environment. Employers need to treat compliance as more than paperwork, it must be a line item in strategy, training, and daily operations.

If you’re an employer who sponsors H-1B workers, or an H-1B worker concerned about your employer’s practices, Berardi Immigration Law is ready to help you analyze your current standing and plan for risks ahead. Early review and strong legal counsel can make a difference in staying compliant and avoiding penalties. Schedule your consultation today.