E-Paper
Trump government widens foreign labor fraud crackdown: What H-1B workers and employers should know
The DOL's investigation into foreign labor fraud, including the H-1B program, intensifies with subpoenas issued and field checks revealing locked offices.
Prefer HTon Google
The US Department of Labor is stepping up its crackdown on suspected foreign labor fraud, with Labor Department Inspector General Anthony D’Esposito warning that investigators are pursuing more cases involving visa fraud, worker exploitation and potential human trafficking.
In a September 25 “Fraud Friday” video, D’Esposito said investigators were following every lead and using additional resources as part of the Trump administration’s broader fraud enforcement effort. He warned that “more suspensions, more arrests, and more search warrants are coming.”
The warning comes days after the DOL Office of Inspector General said investigators had already issued dozens of subpoenas and executed search warrants as part of a foreign labor fraud investigation.
H-1B fraud probe is already underway
The Labor Department’s foreign-labor crackdown includes the H-1B program. In July, the DOL OIG announced a major investigation into H-1B and PERM fraud, saying it was examining allegations including fraudulent applications, wage kickbacks, worker exploitation and fraudulent recruitment practices.
The agency also urged both US workers and foreign workers to report suspected abuse. Foreign workers were specifically encouraged to report concerns involving exploitation, coercion, benching and fraudulent recruitment.
The investigation has since moved into the field. In August, D’Esposito said investigators conducted checks at several locations in Dallas linked to companies with hundreds of approved H-1B petitions. According to the DOL OIG, investigators found some offices locked, with lights off and little evidence of active business operations.
The agency has not said that all employers or petitions examined in the investigation involved fraud. The field checks are part of an ongoing probe.
What H-1B workers and employers should know
For H-1B employers, the latest warning points to greater scrutiny of documentation and the circumstances surrounding foreign-worker petitions. The DOL OIG has said its investigation is examining potential fraud involving employment-based visa programs and has expanded cooperation with other federal law-enforcement agencies.
The investigation is also not limited to paperwork. The DOL OIG said in September that its work includes foreign labor fraud, worker exploitation and potential human trafficking.
For H-1B workers, the agency has specifically asked people who believe they have faced exploitation, coercion, benching or fraudulent recruitment practices to report their concerns.
The DOL OIG said visa applications from Cognizant and Cloudera had been suspended pending a criminal investigation. The agency did not announce findings of wrongdoing against either company in that statement.
D’Esposito's latest warning indicates that the Labor Department's foreign-labor investigation is continuing, with the inspector general saying investigators will pursue additional leads and cases as the broader federal fraud crackdown expands.
