The U.S. Department of Labor (DOL) recently announced the launch of Project Firewall, under which the agency is expected to conduct more frequent and rigorous labor condition application (LCA) audits and investigations, among other enforcement activities. While the DOL has long possessed the authority to investigate and enforce employer compliance with the H-1B wage rules, the agency now plans to increase investigations certified by the Secretary of Labor, which will authorize enforcement in a wider variety of circumstances, including where no outside complaint has been filed. The DOL plans to coordinate with the U.S. Department of Justice (DOJ) and U.S. Citizenship and Immigration Services, among other government agencies, to share information and refer cases.
If the DOL determines that an employer failed to comply with the H-1B wage rules, the agency could impose severe penalties, including repayment of back wages, fines and/or debarment from the H-1B program. Moreover, as the DOL will be coordinating with the DOJ under Project Firewall, employers could also face potential criminal investigations.
Accordingly, it is increasingly important for employers to ensure that they are in compliance with the H-1B wage and documentation rules. Employers should regularly conduct audits of their public access files (PAFs) to confirm that they include all required documentation and that the documents are complete and accurate. Furthermore, employers should ensure that pay to H-1B workers is consistent with their corresponding LCAs and that LCA posting notices are properly posted at each worksite and retained in the corresponding PAFs, among other compliance considerations.
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