US Department of Labor Inspector General Anthony D’Esposito has warned employers against manipulating the visa system.

Updated on: Sep 18, 2026, 06:51:43 IST

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US Department of Labor Inspector General Anthony D’Esposito has warned employers against manipulating the visa system through fake jobs, sham employers and wage kickbacks, saying businesses that rely on such practices should expect investigations.

“A visa is not a license to cheat American workers. Fake jobs. Sham employers. Wage kickbacks.

If your business model depends on gaming our immigration system, it deserves an investigation.

American jobs. American wages. Zero patience for fraud." D’Esposito said in a post on X.

The warning comes as the DOL Office of Inspector General steps up its scrutiny of alleged fraud involving employment-based immigration programs, including H-1B visas.

DOL targets alleged H-1B abuse

The DOL OIG said in July that it had launched a nationwide investigation into suspected fraud involving the H-1B and PERM programs. According to the agency, investigators are examining allegations including fraudulent applications, coercive wage-kickback arrangements and the use of foreign workers at wages below required levels.

The agency has specifically highlighted wage kickbacks as an area of concern. Such arrangements can involve employers requiring H-1B workers to return part of their wages, including through threats related to employment.

Federal law requires H-1B employers to pay workers at least the required wage, generally the higher of the prevailing wage or the employer’s actual wage for similarly employed workers. The Department of Labor also restricts deductions that would effectively reduce an H-1B worker’s pay below the required wage.

Investigators conduct field checks

The crackdown has included field investigations. In August, the DOL OIG said investigators conducted checks in Dallas at locations associated with companies that had received hundreds of approved H-1B petitions.

According to the agency, investigators visited a multi-story building associated with more than 500 approved H-1B applications and found several offices with signs of inactivity, including locked doors and limited evidence of active business operations.

The OIG has also warned that employers and labor brokers suspected of submitting fraudulent applications could face scrutiny as part of the investigation.

For legitimate H-1B employers, the program continues to require compliance with federal wage and employment rules. Employers must meet Labor Department requirements covering wages and working conditions, among other obligations.

D’Esposito’s latest message signals that the OIG intends to keep examining arrangements it believes could undermine those requirements. It also comes amid a larger immigration crackdown under the Donald Trump government.

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