'Count Your Days': US Labor Department to Launch H-1B Fraud Investigation Amid Increased Scrutiny

The U.S. administration’s oversight of the H-1B visa program is expanding, and the Department of Labor’s Office of Inspector General (DOL OIG) says a growing number of whistleblower complaints and public tips are helping investigators identify suspected fraud and abuse.

In a post on X on Wednesday, the watchdog issued a blunt warning to those allegedly involved in fraudulent immigration schemes: “Count your days.” The agency said information from whistleblowers, members of the public and investigators contributes to its work with the White House Anti-Fraud Task Force.

The investigation goes beyond technology

Inspector General Anthony D’Esposito said the agency had received a flood of information from people who worked for or cooperated with businesses that investigators described as “visa mills.” The tips followed interviews and social media posts highlighting the ongoing investigation.

The broader investigation includes alleged fraud involving the H-1B and PERM programs, including claims of fraudulent applications, wage-related kickbacks, labor brokers, and potential human trafficking. The investigation is not limited to the technology industry, with D’Esposito saying healthcare and other sectors are also being looked into.

The OIG is investigating suspected violations involving employers, immigration attorneys and labor brokers in several U.S. foreign worker programs. These include H-1B, H-2A, H-2B, and PERM.

Field investigation raises questions

The watchdog also carried out ground checks as part of the investigation. During a visit to Dallas in August, investigators examined addresses associated with companies that secured hundreds of approved H-1B petitions.

At one multi-office property associated with more than 500 approved petitions, investigators said several offices appeared to be inactive, with locked doors and off lights. D’Esposito cited the case and described the investigation as an effort to uncover the layers of the alleged fraud.

The findings remain part of an ongoing investigation, rather than a final determination of the wrongdoing of the entities involved.

Cloudera is facing a separate PERM action

The intervention also included the inspection of individual companies. D’Esposito referenced the actions involving Cognizant and Cloudera, saying H-1B applications have been suspended.

Separately, the Department of Labor in May suspended for 180 days the processing of all PERM applications filed by or on behalf of Cloudera. The department said the action followed evidence obtained by the U.S. Department of Justice that suggested Cloudera created a hiring process that prevented qualified U.S. workers from applying for certain technology positions. The Department of Justice subsequently filed a lawsuit over the allegations.

The development adds another layer of uncertainty for companies that rely on foreign worker programs as U.S. agencies step up checks on hiring practices and the integrity of visa applications.