US Labor Department Inspector General Anthony D'Esposito has issued a stern warning, signaling an aggressive wave of upcoming suspensions and intensified investigations into employment-based immigration fraud, particularly concerning H-1B visas.
D'Esposito emphasized the administration's commitment to domestic employment during a recent interview, stating, “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.” He added, “Nobody can tell me that we don't have the best and brightest here in the United States of America.”
Federal Inquiry Expands
This warning coincides with a rapidly widening federal inquiry into alleged abuses within both the H-1B visa and employment-based green card pipelines. Washington is drawing a sharp line, asserting that temporary work programs are not designed to be permanent corporate business models.
The current friction follows a high-profile crackdown in October, which saw the administration suspend several major technology and outsourcing firms from the Permanent Labor Certification (PERM) program. These companies included Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini.
Impact on Foreign Professionals and Stricter Penalties
The resulting halt on PERM applications has severely disrupted permanent residency pathways for foreign professionals at these firms. Allegations suggest that these companies utilized the immigration framework to replace domestic workers with lower-paid foreign employees, rather than filling a genuine scarcity of American talent.
Federal investigators are actively pursuing allegations involving fraudulent applications, wage kickbacks, and systemic program abuses. Inspector General D'Esposito indicated that additional companies and educational institutions could soon face suspensions as his office collaborates closely with Vice President JD Vance’s White House Fraud Task Force.
The broader regulatory squeeze also includes a newly introduced $100,000 payment requirement for certain new H-1B petitions, alongside restrictions extended through September 2027, underscoring a stricter enforcement environment for these temporary work visas.