Project Firewall: What U.S. Employers and Workers Need to Know About H-1B Visa Compliance

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28 January 2026

The U.S. Department of Labor (DOL) has launched Project Firewall—a strategic enforcement initiative under the Wage and Hour Division (WHD)—to protect highly skilled U.S. workers and ensure H-1B visa program compliance.

As a firm committed to defending both employer integrity and worker rights, VKM Law Group breaks down what this initiative means and why it matters to employers, employees, and immigration attorneys alike.

What is Project Firewall?

Project Firewall is designed to:

  • Hold employers accountable for misusing the H-1B visa program

  • Prevent the displacement of qualified U.S. workers

  • Enforce legal standards around wages, recruitment, and working conditions

This initiative reinforces the DOL’s commitment to protecting the interests of U.S. workers while maintaining the integrity of employment-based visa programs.

Legal Obligations for All H-1B Employers

All employers participating in the H-1B program must comply with the following requirements:

  • Provide notice of the Labor Condition Application (LCA) to U.S. workers on or before the date of filing

  • Avoid discrimination or retaliation against U.S. workers who assert their rights

  • Refrain from employing H-1B workers during ongoing strikes or lockouts

  • Protect working conditions, including hours, shifts, and benefits, for similarly employed U.S. workers

  • Pay fair wages—equal to or above prevailing wage or the wage paid to similarly qualified U.S. employees

  • Offer equal benefits to H-1B and U.S. workers alike

These rules aim to prevent wage suppression and benefit disparities that could negatively impact the American workforce.

Additional Rules for H-1B Dependent Employers & Willful Violators

Employers who are H-1B dependent or have been previously found in violation of the H-1B program must:

  • Recruit U.S. workers in good faith

  • Offer jobs to equally or more qualified U.S. applicants before hiring an H-1B worker

  • Avoid displacing U.S. workers for equivalent job roles

This enhanced scrutiny is intended to deter intentional abuses of the system.

Penalties for Non-Compliance

If an employer violates H-1B visa laws, the Department of Labor may:

  • Recover back wages and fringe benefits owed to workers

  • Impose civil money penalties

  • Enforce debarment from the H-1B program (and related immigration programs) for at least one year

Non-compliance doesn’t just carry legal consequences—it can also damage your business’s reputation and lead to long-term exclusion from talent pipelines.

How to Report Violations

If you believe an H-1B violation has occurred:

  • Submit Form WH-4 to your nearest WHD office
  • Report civil rights violations to the U.S. Department of Justice’s Civil Rights Division

Whether you are an employer seeking compliance guidance or a worker looking to assert your rights, legal support is critical.

At VKM Law Group, we specialize in:

  • Helping employers navigate H-1B hiring legally

  • Guiding HR teams through DOL and USCIS audits

  • Advocating for skilled workers impacted by noncompliance

  • Providing counsel on H-1B program updates like Project Firewall

📍 Based in New Jersey, we serve clients nationwide. Don’t wait until you’re under investigation—proactive compliance saves time, money, and your reputation.