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US Labor Department official warns H-1B visas cannot be used as business model, signals wider crackdown
The Labor Department’s inspector general warned companies not to treat temporary work visas as a business model.
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US Labour Department Inspector General Anthony D’Esposito has warned companies against treating temporary work visas as a business model, signalling further suspensions and intensified investigations into alleged immigration fraud as the Trump administration steps up scrutiny of foreign worker hiring.
“The visa system and these visas that are in place are all temporary. They are not a method of doing business. You're only supposed to use, for example, an H1B visa if you cannot find a willing and able American to do the same job.” D’Esposito said in an interview to Fox News.
“Nobody can tell me that we don't have the best and brightest here in the United States of America,” he added, defending the administration’s emphasis on hiring American workers.
The warning comes amid an expanding investigation into alleged abuses of the H-1B visa and employment-based green card programmes.
Also Read: Trump administration warns of more H-1B, PERM suspensions for universities, companies
Eight companies suspended from green card programme
In October, the Trump administration suspended Microsoft, Adobe and six major technology outsourcing companies from the Permanent Labor Certification (PERM) programme, which employers use to sponsor foreign workers for employment-based green cards.
The affected companies include Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies and Capgemini.
The suspensions halted the acceptance and processing of PERM applications involving the companies, disrupting an important pathway to permanent residency for foreign professionals employed by them.
The action followed allegations that some employers had used immigration programmes to replace American workers with lower-paid foreign employees.
Also Read: Trump administration targets Microsoft with H-1B remark amid Outlook outage
More H-1B programme investigations to follow
D’Esposito's remarks come as federal investigators pursue allegations involving fraudulent applications, wage kickbacks and other suspected abuses in employment-based immigration programmes.
The inspector general has indicated that more companies and educational institutions could face suspensions as investigations continue. His office is working with Vice President JD Vance's White House Fraud Task Force.
The Trump administration has already introduced a $100,000 payment requirement for certain new H-1B petitions and extended related restrictions through September 2027.
D’Esposito's warning also raises the prospect of further changes to the programme. However, a comprehensive H-1B overhaul or shutdown has not been formally announced.
