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Immigration Fraud: Myths, Facts, and the Employer’s Role in FY2027

H-1B Immigration Fraud: What Employers Must Know in 2026

A growing storm of misinformation is clouding public discourse about H-1B and OPT visa holders in the United States. Much of it targets Indian professionals, often suggesting that widespread abuse of the H-1B program justifies a crackdown on legal immigrants. These claims, amplified on social platforms like X, portray all foreign workers as threats to the U.S. labor market.

But facts tell a different story. And just as importantly, employers play a central role in upholding legal compliance under immigration law.

Myths vs. Facts: What the Numbers Actually Say

The Panic Narrative

Social media is filled with emotionally charged claims that most H-1B visa holders are committing fraud. Viral threads and commentaries collapse all Indian nationals into a single stereotype, that of an outsourcing threat. These narratives often conflate legal employment with abuse, failing to distinguish between compliant professionals and cases of proven fraud.

Reality Check

In Operation Twin Shield, a recent high-profile anti-fraud initiative by USCIS, ICE, and the FBI, federal agents reviewed over 1,000 cases and conducted more than 900 site visits. Fraud or noncompliance was found in 275 cases. Only 42 individuals were referred to ICE, and just 4 were apprehended.  [USCIS: Source Link]

This means less than 5% of those investigated faced any immigration enforcement. The real lesson: immigration fraud is real, but not widespread among H-1B workers. Enforcement actions are targeted, not indiscriminate.

Employer Obligations Under H-1B Law: A FY2027 Snapshot

Amid public scrutiny, federal enforcement is increasingly focused on employers. Agencies like USCIS and the Department of Labor (DOL) expect companies to fully comply with labor and immigration regulations.

1. Pay the Required Wage

Employers must pay the higher of the prevailing wage or the actual wage for similar roles. Benching without pay is prohibited unless the employee is on voluntary leave.

2. File and Follow the Labor Condition Application (LCA)

Employers must file an LCA and certify compliance with wage, working condition, and notice requirements. Changes in job duties, worksite, or compensation may require a new LCA and amended petition.

3. Maintain a Public Access File (PAF)

A Public Access File must be created within one working day of filing the LCA. It must include the certified LCA, wage explanation, prevailing wage documentation, and proof of worksite notice. It must be available for public inspection and retained for at least one year beyond the LCA expiration.

4. Use the H-1B Worker Only in the Approved Role

The worker must be assigned to the job described in the H-1B petition. Any material changes, location, duties, wage, can require a new filing. Relocations outside the original metro area, in particular, trigger compliance risks.

5. Pay the Required Fees

Employers must cover the costs of H-1B registration, filing, training, and fraud prevention. These fees cannot be passed to the employee or deducted from wages. Reimbursement agreements that tie repayment to continued employment are illegal.

6. Offer Comparable Working Conditions

H-1B workers must receive benefits and working conditions similar to those of their U.S. colleagues. This includes health coverage, bonuses, and vacation policies.

7. H-1B-Dependent Employers Have Extra Duties

If a company qualifies as H-1B-dependent, it must prove it did not displace U.S. workers and made good-faith efforts to recruit qualified U.S. candidates. Documentation must be detailed and contemporaneous.

8. Proper Termination and Return Travel

If an H-1B worker is terminated early, the employer must notify USCIS and offer to cover return transportation costs to the worker’s home country. Wage obligations continue until formal termination is complete.

9. Recordkeeping and Audit Cooperation

Employers must retain payroll and LCA records, and respond truthfully to USCIS site visits or DOL investigations. Noncompliance may result in civil fines, back wages, and debarment from future H-1B use.

Political Shifts: Why Employer Compliance Matters More Than Ever

The Trump administration has introduced major changes to the H-1B program:

  • A new $100,000 H-1B entry fee, upheld by federal courts
  • A merit-based visa allocation system replacing the lottery
  • Enhanced fraud detection and employer audits

These moves have split the political establishment. While hardline voices demand further restrictions, industry leaders and moderate lawmakers warn these changes threaten innovation and workforce stability.

In this landscape, compliant employers act as stabilizing forces. They help ensure that foreign talent remains a viable part of the U.S. economy, without inviting legal scrutiny or public backlash.

Final Word: Employers Set the Tone

While much of the focus is on visa holders, the truth is this: employers control the playing field. Every decision, from pay structure to job description to termination, can either strengthen or undermine the integrity of the immigration process.

If you’re an employer using the H-1B program:

  • Audit your processes
  • Maintain airtight documentation
  • Never cut corners

You’re not just managing workers. You’re managing legal risk, reputational credibility, and your company’s access to global talent.

DISCLAIMER: This blog is intended solely for general informational and educational purposes. It does not constitute legal advice, nor does it create an attorney-client relationship between the reader & Ahluwalia Law Offices, P.C. The legal information provided herein may not apply to your individual circumstances & is subject to change based on evolving immigration laws and policies. Readers are strongly encouraged to consult directly with a qualified immigration attorney for guidance tailored to their specific situation. Our front desk staff is not authorized to interpret legal information or provide legal advice beyond what is explicitly stated in this blog. They are also not permitted to assess eligibility, review case details, or respond to case-specific inquiries.
Please note: Due to the high volume of inquiries and the sensitive nature of immigration matters, we cannot respond to questions or requests for legal analysis via phone or email unless a formal consultation has been scheduled. We appreciate your understanding and encourage you to book an appointment with one of our attorneys if you require personalized legal assistance.