On September 19, President Trump issued a Presidential Proclamation imposing a $100,000 fee on all new H-1B petitions. The announcement caused confusion and uncertainty, as the White House initially gave conflicting statements.  Ultimately, the White House published updated FAQ, further amending their initial announcement. The immigration agencies, including USCIS and CBP, rushed to issue their own interpretations and clarifications. Even so, many things remain unclear in terms of scope and application, although we do expect further clarifications in the coming days. We will also likely see swift legal challenges to the proclamation, to determine the full scope of the president’s authority to implement such a restriction.

While the proclamation raised a lot of questions about the immediate impact of a 100k fee, it also revealed the President’s plans for additional changes coming to the H-1B program. Through the proclamation, President Trump directed the Department of Labor (DOL) to initiate formal rule-making to amend prevailing wage levels for H-1B petitions. This move signals significant changes ahead: higher required wages for H-1B workers and a more restrictive regulatory environment for employers. Importantly, formal rule-making from the DOL will be much harder to challenge in the courts, meaning changes implemented to the H-1B program through this process are much more likely to stick.

Further, on the same day as President Trump’s proclamation, the Department of Labor announced “Project Firewall,” an initiative which will increase DOL investigations to maximize H-1B program compliance. H-1B employers should expect heightened scrutiny and increased site visits because of this announcement.

Taken together, these developments highlight a rapidly changing H-1B landscape. While the H-1B program has experienced a relatively favorable environment over the past several years, changes are coming. These changes will likely result in greater enforcement actions, heightened scrutiny of filed petitions, and an overall more restrictive environment for H-1B employers.

What Employers Should Do Now

Given this evolving environment, employers should act quickly to get ahead of the anticipated rule changes. While we don’t yet know the exact details of the DOL’s planned rule-making, the President’s proclamation made clear the administration plans to increase H-1B wages. As such, we strongly recommend that H-1B employers take the following proactive steps:

1. File Any Upcoming Amendments, Extensions, and Transfers ASAP
   • Any H-1B amendments, extensions, or transfers that you anticipate filing in the next six months should be filed as soon as possible.
   • Filing now allows H-1B petitions to be reviewed under the current prevailing wage framework before new rules increase the wage requirements.
2. Conduct Internal Compliance Audits
   • Employers should review Public Access Files (PAFs), LCA postings, and wage documentation to ensure complete H-1B program compliance.
   • Make sure all worksite locations are properly covered by certified LCAs and reflected in the H-1B petition. If you identify any discrepancies in job title, duties, wages, or location, timely file an H-1B amendment to bring all affected H-1B employees into complete compliance.
   • Do not wait for a DOL site visit or investigation to review your H-1B employee files. During a DOL investigation, violations can carry civil penalties, monetary fines, and even H-1B program disbarment. A proactive approach is critical.
3. File H-1B Amendments Where Needed
   • Amendments are required when there are changes in work location, client projects, job duties, wages, or job titles. Even if the location remains the same, USCIS considers end client changes material and an amendment must be filed.
   • File all petitions at the appropriate wage level and cover all discrepancies. Wage levels must align to the requirements of the position. If there is an end client, it is the end client’s requirement which control under Defensor v. Meissner. For example, if the end client requires 5 years of experience, the wage level must reflect that experience requirement. During site visits, USCIS regularly contacts the end client to confirm the position requirements and any discrepancy between the confirmed client requirements and the wage level certified in the LCA will result in a Notice of Intent to Deny/Revoke. This has been a major focus during recent site visits, so employers should pay close attention to the current wage levels of all H-1B employees and file amendments where needed.
   • Proactively reviewing and amending petitions reduces exposure during DOL audits and helps avoid findings of noncompliance.
4. Prepare for Investigations
   • Employers should expect an increase in DOL site visits and audits under Project Firewall.
   • A strong compliance record is the best protection against potential penalties and enforcement actions.
   • Train HR employees, managers, and other company personnel on what to expect during a DOL investigation. This means making sure if the DOL performs a site visit, the person in charge of the office knows where to find the Public Access Files (PAFs) and employee files, has access to the necessary documentation, and generally understands the H-1B program requirements. All H-1B employees should have access to their LCAs and understand the terms and conditions of their H-1B employment.

Why Timing Matters

DOL rulemaking will take time, but once implemented, new wage levels will directly impact H-1B petitions. By filing amendments, extensions, or transfers now, employers can secure H-1B validity for the next three years under the current rules and minimize the risk of having petitions delayed, denied, or subjected to higher wage requirements and increased program restrictions in the coming months

How We Can Help

ILBSG is closely monitoring regulatory developments and assisting clients with:

• Rapid preparation and filing of H-1B amendments, extensions, and transfers.
• Internal compliance reviews to prepare for potential DOL investigations.
• Strategic planning to minimize the impact of anticipated wage increases.

If you have any H-1B petitions in your pipeline—whether for H-1B amendments, extensions, or upcoming transfers—do not delay. Filing in the coming weeks and months could make the difference between approval and costly adjustment.

As always, Immigration USA actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, please contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws and policy updates. In an ever-evolving immigration landscape, we’re with you every step of the way.