'Count your days': US Labor Department ramps up H-1B fraud probe amid increased scrutiny

The US Labour Department’s H-1B fraud investigation is expanding beyond the technology sector, with whistleblower tips and field inspections helping investigators identify suspected abuses involving employers, recruiters and labour brokers.

The US administration’s scrutiny of the H-1B visa programme is widening, with the Department of Labor’s Office of Inspector General (DOL OIG) saying a growing number of whistleblower complaints and public tips are helping investigators identify suspected fraud and abuse.

In a post on X on Wednesday, the watchdog issued a blunt warning to those allegedly involved in fraudulent immigration schemes: “Count your days.” The agency said information from whistleblowers, members of the public and investigators was feeding into its work with the White House Task Force to Eliminate Fraud.

Investigation expands beyond technology

Inspector General Anthony D’Esposito said the agency has received a surge of information from people who have worked for or interacted with businesses described by investigators as “visa mills”. The tips followed interviews and social media posts highlighting the ongoing investigation.

The broader probe covers alleged fraud involving H-1B and PERM programmes, including claims of fraudulent applications, wage-related kickbacks, labour brokers and potential human trafficking. The investigation is not confined to the technology industry, with D’Esposito saying healthcare and other sectors are also being examined.

The OIG investigates suspected violations involving employers, immigration lawyers and labour brokers across several US foreign-worker programmes. These include H-1B, H-2A, H-2B and PERM.

Field investigations raise questions

The watchdog has also conducted on-ground checks as part of the investigation. During an August visit to Dallas, investigators examined addresses associated with companies that had secured hundreds of approved H-1B petitions.

At one multi-office property linked to more than 500 approved petitions, investigators said several offices appeared inactive, with locked doors and lights switched off. D’Esposito cited the case while describing the investigation as an effort to uncover layers of alleged fraud.

The findings remain part of an ongoing investigation, rather than a final determination of wrongdoing by the entities involved.

Cloudera faces separate PERM action

The crackdown has also involved scrutiny of individual companies. D’Esposito referred to actions involving Cognizant and Cloudera, saying H-1B applications had been suspended.

Separately, the Labor Department in May suspended processing of all PERM applications filed by or on behalf of Cloudera for 180 days. The department said the action followed evidence obtained by the US Justice Department alleging that Cloudera had created a recruitment process that prevented qualified US workers from applying for certain technology positions. The DOJ subsequently filed a lawsuit over the allegations.

The developments add another layer of uncertainty for companies that rely on foreign-worker programmes, as US agencies intensify checks on recruitment practices and the integrity of visa applications.

About the Author

Anjali Thakur is a Senior Assistant Editor with Mint, reporting on trending news, entertainment and health, with a focus on stories driving digital conversations. Her work involves spotting early signals across news cycles and social media, sharpening stories for SEO and Google Discover, and mentoring young editors in digital-first newsroom practices. She is known for turning fast-moving developments—whether news-driven or culture-led—into clear, tightly edited journalism without compromising editorial rigour.<br><br> Before joining Mint, she was Deputy News Editor at NDTV.com, where she led the Trending section and covered viral news, breaking developments and human-interest stories. She has also worked as Chief Sub-Editor at India.com (Zee Media) and as Senior Correspondent with Exchange4media and Hindustan Times’ HT City, reporting on media, advertising, entertainment, health, lifestyle and popular culture.<br><br> Anjali holds a Bachelor of Arts degree from Miranda House, and is currently pursuing an MBA, strengthening her understanding of business strategy and digital media economics. Her writing balances newsroom discipline with a clear instinct for what resonates with readers.