On July 8, 2026, the U.S. Department of Labor's Office of Inspector General (DOL OIG) announced a major investigation into possible fraud in the H-1B work-visa and PERM labor-certification programs (PERM is the process used to sponsor employment-based green cards). The office said it has already issued dozens of subpoenas. The same day, Vice President JD Vance spoke about the investigation at an anti-fraud event in Milwaukee. Below: what investigators are examining, who is actually affected, and what H-1B holders should know.
In brief
On July 8, 2026, DOL OIG opened a nationwide H-1B and PERM investigation; dozens of subpoenas have already gone out.
The stated targets are employers and labor brokers: fraudulent applications, wage-kickback schemes, paying below the required wage, and worker exploitation. Ordinary, good-faith employees are not the target.
No charges have been filed. This is the information-gathering stage — subpoenas, audits, requests. The probe is run by the Labor Department's Inspector General together with the White House Task Force chaired by Vance.
What happened: the Labor Department opens an H-1B and PERM investigation
The investigation was announced on July 8 by Department of Labor Inspector General Anthony D'Esposito on Fox Business; the office issued an official press release the same day. The work is being carried out with the White House Task Force to Eliminate Fraud — the presidential task force chaired by Vice President Vance (created in early 2026, with its first meeting on March 27).
According to the Inspector General, investigators have already begun issuing dozens of subpoenas. Beyond the visa programs themselves, the office says it is examining indicators of forced labor and human trafficking, as well as possible links between certain schemes and organized crime. The administration's language is forceful; at the time of the announcement, however, this was an investigation, not a set of filed charges.
What investigators are examining
According to the OIG, the focus is on schemes that, in the government's account, some employers and labor brokers used:
submitting fraudulent applications for H-1B and PERM;
wage-kickback arrangements, where a worker is made to return part of their pay to the sponsor;
paying below the required (prevailing) wage stated in the labor documents;
exploiting foreign workers and displacing U.S. workers through an influx of cheaper labor;
possible ties to human trafficking and transnational criminal networks.
The office specifically noted that the investigation is not limited to the tech sector: other industries are in scope, including health care (physicians' offices and nursing facilities), along with the seasonal H-2A and H-2B programs.
Who the investigation targets — and who it does not
The direct target is employers and brokers suspected of fraudulent schemes, not ordinary visa holders who work honestly in their occupation for the stated wage. Holding an H-1B does not, by itself, make a person a subject of the investigation.
That said, heightened enforcement means more scrutiny across the board: requests for additional evidence (RFEs), worksite visits, and audits of LCA and PERM labor certifications. This can indirectly touch even compliant companies and their employees — not as suspects, but as part of a closer review. The warning signs the investigation is focused on include: demands to "pay for sponsorship," returning part of one's wages, non-payment during downtime between projects (benching), pay below the LCA wage, and fictitious job positions or worksite addresses.
What JD Vance said in Milwaukee
On July 8, Vice President Vance spoke in a hangar at the Wisconsin Air National Guard's 128th Air Refueling Wing at Milwaukee Mitchell International Airport. The event centered on the administration's anti-fraud work in government programs, and it was in that context that Vance announced the H-1B investigation.
He framed the administration's position this way: American jobs should go to American workers, "and not foreign fraudsters," and the Labor Department is fighting back. Large corporations and overseas brokers, he said, use the program to undercut American wages. This is the administration's political framing; the program's critics and defenders assess H-1B differently, and most of its use is lawful hiring by employers of specialists they cannot fill locally.
Project Firewall and 175-plus investigations: the context
This is not a one-off. The new investigation sits within Project Firewall — an interagency initiative of heightened H-1B oversight launched in September 2025. Since then, the Labor Department has reportedly opened more than 175 reviews into abuse across the visa programs. In parallel, the administration is advancing other changes: wage-level-weighted selection and a modernization of PERM. In other words, the tightening has been underway for nearly a year, and this announcement is a continuation of it rather than a sudden turn.
Which companies have been named
According to news reports citing a federal official, the Indian IT company Cognizant is among the firms drawing the investigators' attention. An important caveat: this is the investigation stage. No charges have been filed, and being named in press coverage is not the same as established wrongdoing — the presumption of innocence applies. As the matter develops, the list and status of those involved may change.
What H-1B visa holders should do
The investigation itself is no reason to panic: good-faith H-1B employment is lawful. But keeping your records in order is especially sensible right now.
Gather and keep your key documents: the petition approval (I-797), the LCA labor certification, and recent pay stubs showing that your pay is not below the wage stated in the LCA.
Know your LCA wage and job duties — they should match your actual work and worksite.
Watch for employer or broker red flags: requests to "pay for sponsorship" or return part of your wages, non-payment during downtime, a fictitious project, or pay below the LCA. These are exactly the schemes under investigation.
If you encounter any of this, the Labor Department's Inspector General (DOL OIG) runs a hotline for reports; before taking any step, consult a licensed immigration attorney.
Do not confuse an investigation into abuse with an end to the program: the H-1B visa remains in effect.
What employers should do
Companies that sponsor H-1B workers or file PERM applications would be well advised to review compliance now: LCA and PERM files, the public access file, pay matching the required wage, and documentation of real worksites and duties. It is worth being ready for possible subpoenas and audits and, where appropriate, bringing in an immigration attorney for an internal review.
Frequently asked questions
Does this mean H-1B is being cancelled?
No. This is an investigation into abuse, not an end to the program. The visa continues to operate under its normal rules.
Can I be deported if I work in good faith on an H-1B?
The investigation targets employers and brokers, not workers acting in good faith. But if the misconduct comes from an employer, it can affect the petitions tied to that employer — which is why it helps to know the warning signs and keep your own records.
Who is running the investigation?
The Department of Labor Office of Inspector General (DOL OIG), together with the White House Task Force to Eliminate Fraud chaired by Vice President Vance.
Have any wrongdoers been named?
No. No charges have been filed; the process is at the information-gathering stage — subpoenas, audits, and requests for documents.
Official sources
Resource | What it is for |
|---|---|
Primary source: official announcement of the investigation | |
Where to report suspected fraud or worker exploitation | |
Official information on the H-1B program | |
On PERM and LCA labor certification |
This material is informational, current as of July 13, 2026. It is not legal advice. The investigation is ongoing and details may change — before taking action, verify against official sources and consult a licensed immigration attorney.