US Visa Crackdown: Trump Administration Targets Fake Jobs, Sham Employers and H-1B Fraud

The Trump administration is intensifying its scrutiny of employment-based immigration programs in the United States, with federal investigators turning their attention to alleged fake jobs, sham employers, fraudulent visa applications and wage kickback arrangements involving foreign workers. The latest warning came from U.S. Department of Labor Inspector General Anthony D’Esposito, who said employers should not treat the visa system as a means of avoiding employment rules or exploiting workers. In a post on X, D’Esposito warned that businesses relying on fake jobs, sham employers or wage kickbacks could come under investigation.

The comments come against the backdrop of a nationwide investigation launched by the Department of Labor’s Office of Inspector General in July into suspected fraud involving the H-1B and PERM immigration programs. According to the agency, investigators are examining allegations involving falsified employment applications, coercive wage arrangements and other forms of abuse connected to foreign-worker recruitment.

The H-1B program allows U.S. employers to temporarily hire foreign professionals for specialty occupations. The PERM system, meanwhile, is used by employers seeking permanent employment-based immigration for foreign workers. Federal authorities say both programs are intended to address legitimate employment needs and are not meant to be used through fabricated positions or fraudulent arrangements.

One area receiving particular attention is the alleged practice of wage kickbacks. In such cases, investigators say workers may be required to return part of their wages to an employer or intermediary, potentially leaving them with less than the compensation required under federal rules. The Labor Department has previously identified wage kickbacks, benching and labor-leasing arrangements among concerns in the H-1B system.

Federal investigators have also begun conducting physical checks at locations associated with companies that obtained H-1B approvals. During a visit to Dallas in August, the Labor Department's inspector general said investigators examined businesses connected to hundreds of approved H-1B petitions. One multi-business building was linked to more than 500 approved applications, while several offices showed signs of little or no activity, including locked doors and limited evidence of normal business operations.

The field inspections are significant because they take the investigation beyond the documents submitted during the visa process. Authorities are looking at whether companies sponsoring foreign workers actually operate as claimed and whether the jobs listed in immigration paperwork correspond to genuine employment.

The Labor Department's inspector general has said the investigation is being conducted with federal law-enforcement partners and the White House Task Force to Eliminate Fraud. The agency is also encouraging U.S. and foreign workers to report suspected fraud, coercion, fraudulent recruitment practices and other potential abuses connected to labor certification programs.

The campaign places greater emphasis on maintaining genuine job positions, accurate filings and compliance with wage requirements. For foreign workers, the investigation highlights the importance of verifying that a sponsoring employer is an operating business and that the employment arrangement described in immigration documents reflects the actual job.

The government’s investigation is still underway, and scrutiny of a company or employment arrangement does not by itself establish that a violation has occurred. However, the recent actions indicate that U.S. authorities are examining the real-world employment relationship more closely as they seek to identify suspected fraud within the H-1B and PERM systems.

The developments could also have wider implications for companies that rely heavily on foreign skilled workers, particularly in industries where H-1B sponsorship is common. Greater enforcement may increase the need for employers and immigration intermediaries to maintain detailed records and demonstrate that recruitment, pay and job duties comply with federal requirements. The central message from the Labor Department is clear: immigration programs intended for legitimate employment are being subjected to closer scrutiny, and federal investigators are expanding efforts to identify businesses and intermediaries suspected of manipulating the system.