The United States Department of Labor has launched its first major investigation into fraud and abuse in the H-1B visa programme. Inspector General Anthony D’Esposito confirmed on 8 July 2026 that investigators have already issued dozens of subpoenas.
D’Esposito made the announcement exclusively on Fox Business’s Mornings with Maria, describing it as the latest step in the administration’s expanding anti-fraud campaign. Vice President JD Vance held a separate nationwide fraud initiative event in Milwaukee the same day.
“This is not just people working in factories or actual labour,” D’Esposito said. “These are people working in medical facilities and doctors’ offices that are actually putting people in harm’s way.”
The Department of Labor did not release the names of companies under investigation or the specific visa applications being examined. No charges have been filed. No individuals or organisations have been publicly named.
What the investigation covers
The probe covers alleged H-1B and PERM visa fraud, labour trafficking and the displacement of American workers. PERM, or Program Electronic Review Management, is the labour certification process required before an employer can sponsor a foreign national for an employment-based green card.
The investigation is being conducted by the DOL’s Office of Inspector General, separate from the Wage and Hour Division, which handles routine H-1B wage compliance.
What is the H-1B visa?
What is the H-1B visa?
The H-1B is a non-immigrant work visa that allows US companies to hire foreign nationals in specialty occupations requiring at least a bachelor’s degree or equivalent. It is valid for three years and can be extended to six. Companies must file a Labour Condition Application with the Department of Labor attesting to wage and working condition standards before submitting a petition to USCIS. The visa is subject to an annual cap of 85,000 new approvals, allocated by lottery. Indian nationals account for approximately 70 to 75% of all H-1B approvals annually, according to USCIS data.
What came before this probe
The new IG investigation follows a sustained period of H-1B enforcement activity during the Trump administration’s second term.
In November 2025, the Department of Labor announced 175 separate investigations into H-1B abuse involving more than USD 15 million in calculated back wages owed to workers. The department said investigators had found foreign workers with advanced degrees being paid significantly below the wages advertised in job descriptions. Labour Secretary Lori Chavez-DeRemer said the department was “using every resource at our disposal to put a stop to H-1B abuse and protect American Jobs.”
In March 2026, the administration launched Project Firewall, a separate initiative covering 200 active investigations into alleged H-1B fraud across multiple federal agencies.
The administration also introduced a USD 100,000 fee on new H-1B petitions effective September 2025. The DOL has proposed raising prevailing wage levels for H-1B, H-1B1 and PERM programmes by approximately 21% to 33% depending on experience level. The public comment period on the wage rule has closed.
The Cognizant civil cases: a separate but related picture
While no companies have been named in the new IG probe, the H-1B programme’s use by Indian IT outsourcing firms has been under sustained legal scrutiny through parallel civil proceedings.
In October 2024, a federal jury in Los Angeles found Cognizant Technology Solutions, founded in Chennai and headquartered in New Jersey, had engaged in a pattern and practice of intentional discrimination against more than 2,000 non-South Asian and non-Indian employees between 2013 and 2022. The jury found the company had favoured H-1B visa holders, the overwhelming majority of whom were Indian nationals, in staffing and retention decisions.
In December 2025, Chief US District Judge Dolly Gee issued a further ruling finding Cognizant’s Visa Readiness and Visa Utilisation staffing policies had a discriminatory disparate impact on non-South Asian employees. Phase two of the case, covering individual damages including back pay and reinstatement, was set to proceed in early 2026.
A New York jury awarded USD 8.4 million in a separate Cognizant retaliation case in early 2026, related to allegations that the company retaliated against employees who raised concerns about its H-1B staffing practices.
Cognizant has said it is disappointed with the verdicts and plans to appeal. The company has maintained it does not tolerate discrimination and provides equal employment opportunities for all employees. These civil cases are entirely separate from the new DOL IG investigation and do not constitute any finding by the Inspector General against Cognizant.
What it means for Indian IT workers in the US
The investigation targets alleged employer fraud, not H-1B visa holders. The DOL’s stated focus is on employers who misuse the programme through fraudulent visa applications, underpayment of workers and displacement of American employees.
Indian IT professionals on H-1B visas are frequently employed by the companies the administration is scrutinising. An enforcement action against an employer does not automatically affect a current H-1B holder’s status. However, if an employer is debarred from future H-1B sponsorship following a finding, workers sponsored by that employer would need to transfer their petitions to a new employer or face a disruption in their status. The timeline for any such outcome from this probe is not known.
D’Esposito has not indicated when the investigation is expected to conclude or when any findings or charges might follow.
The programme under political pressure
The H-1B programme has become one of the most contested immigration issues in the United States. Supporters argue it is essential for the technology and healthcare sectors. Critics argue it suppresses wages and disadvantages American workers.
The administration’s position has been internally divided. Elon Musk and other prominent Trump supporters publicly defended the H-1B programme in late 2025 as necessary for American competitiveness. At the same time, the administration has imposed the USD 100,000 fee, tightened site visit enforcement, proposed a salary-weighted lottery and now launched the IG investigation.
Large Indian IT firms including Tata Consultancy Services, Infosys and Cognizant collectively filed more than 21,000 H-1B petitions in 2026, accounting for the highest volume of H-1B approvals of any employer group in the US, according to USCIS data. Their average H-1B salaries are reported at below USD 105,000, significantly lower than those paid by companies such as Google and Meta for comparable roles. The DOL’s proposed prevailing wage increase, if finalised, would raise costs most sharply for high-volume, lower-wage H-1B sponsors.
What Indian professionals in the US are asking
Is my H-1B status at risk if my employer is being investigated?
The probe targets employer fraud, not individual visa holders. Your H-1B status is not directly affected by an investigation into your employer. If your employer is debarred from future sponsorship as a result of a finding, seek immigration legal advice about your transfer and renewal options at that point.
What is PERM and why is it part of this probe?
PERM is the labour certification process required before an employer can sponsor a foreign national for a US employment-based green card. Employers must demonstrate through PERM that no qualified American worker is available for the role. Fraud in the PERM process typically involves falsified recruitment records, inflated job requirements or applications for positions that do not exist.
What happens to an employer found to have violated H-1B rules?
Employers found to have violated the H-1B programme can face back wage orders, civil fines and debarment from sponsoring future H-1B or PERM applications. Criminal prosecution is possible where deliberate fraud or labour trafficking is established.
How does the proposed wage increase affect Indian IT workers?
The proposed 21% to 33% increase in prevailing wages, if finalised, would require H-1B employers to pay higher minimum wages for sponsored positions. For Indian IT workers, higher required wages could improve earnings but may also reduce the volume of entry and mid-level positions companies choose to sponsor.
