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US Debars Four Firms from H-1B Visa Program Over 'Willful Violations' Starting July 2026

· · 3 min read

The US Department of Labor has banned four companies from participating in the H-1B visa program, effective July 1, 2026. These firms are designated 'willful violators' for failing to meet wage and employment requirements, preventing them from filing new H-1B petitions for up to two years.

The United States Department of Labor (DOL) has announced that four companies will be debarred from the H-1B visa program, effective July 1, 2026. These employers have been classified as "willful violators" of immigration regulations, specifically related to wage and employment compliance under the H-1B program.

This enforcement action, maintained by the DOL's Wage and Hour Division, means the designated companies will be unable to file new H-1B petitions for a specified period, typically up to two years. The measure aims to ensure robust adherence to the program's requirements designed to protect both foreign and domestic workers.

Companies Added to the Debarment List

The latest update to the debarment list includes the following four employers, along with their respective debarment periods:

  • GowraTech, LLC: Debarred from May 12, 2025, to May 11, 2027
  • Renotek Group LLC: Debarred from August 8, 2025, to August 7, 2027
  • Seeloz, Inc.: Debarred from March 4, 2026, to March 3, 2028
  • Sherwood at Mount Dora, Inc. (doing business as Sherwood Academy): Debarred from May 26, 2026, to May 25, 2028

During these periods, the listed companies are strictly prohibited from submitting H-1B petitions under the federal program.

Defining a 'Willful Violator'

According to the DOL, an employer earns the classification of a "willful violator" when a violation is established through formal proceedings under Section 212(n)(2) of the Immigration and Nationality Act (INA) by the Department of Labor, or Section 212(n)(5) by the Department of Justice. This designation requires a finding that the employer either intentionally failed to meet Labour Condition Application (LCA) requirements or provided false or misleading material statements related to its LCA commitments. Only violations recorded on or after October 21, 1998, qualify for this severe designation.

Additional Compliance and Scrutiny

Beyond the temporary ban from the H-1B visa program, employers designated as willful violators face heightened obligations for a period of five years following the violation finding. Unless an application pertains solely to exempt H-1B workers, these employers must submit additional attestations with any LCA filed.

These attestations include certifying that no US workers have been displaced while filing H-1B petitions. Furthermore, employers must confirm they have verified that a secondary employer does not intend to replace US workers before placing H-1B employees at that location. They are also required to demonstrate genuine efforts to recruit US workers and that positions were offered to equally or better-qualified US applicants.

Employers on the willful violator list are also subject to random investigations by the DOL for up to five years from their designation date, reflecting increased scrutiny from labor authorities.

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