H-1B visa scrutiny rises as DOJ launches discrimination probes

Synopsis
The US Department of Justice is investigating H-1B visa-related hiring discrimination claims amid calls for program reform. Several probes are underway, examining allegations of companies favoring visa holders over qualified American workers. Policy changes are also reshaping the H-1B process, including a shift to a beneficiary-centric lottery and potential wage-based allocation.
The H-1B program issues up to 85,000 new visas each year, allowing US employers to hire foreign professionals in sectors such as technology, medicine, and engineering. It does not include extensions for existing holders. For decades, the program has been a flashpoint in the immigration debate. Supporters argue that it fills talent shortages in critical industries, while opponents say it undercuts wages and displaces US workers.
Political divide over H-1B
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Republican leaders have taken different positions on the visa program. Florida Governor Ron DeSantis has called it a "total scam," alleging that companies dismiss Americans while hiring workers on temporary visas, many from India. Commerce Secretary Howard Lutnick told Fox News he supports ending the current lottery system in favor of wage- or merit-based allocation, saying, "I am involved in changing the H-1B program because that is terrible."
Recent enforcement actions
The DOJ has stepped up enforcement through its Protecting US Workers Initiative. In June, California-based Epik Solutions was required to pay nearly $71,900 to resolve allegations that it posted job advertisements limited only to H-1B applicants, which the department said violated the Immigration and Nationality Act.
System changes already underway
Policy changes are also reshaping the process. Morgan Bailey, partner at Mayer Brown and former Homeland Security official, told Newsweek that the US Citizenship and Immigration Services (USCIS) has shifted to a beneficiary-centric lottery for FY 2025. This prevents multiple entries of the same individual by different companies. "This levels the playing field, so companies that register a large number of unique candidates are more likely to see a higher number of approvals," Bailey said.
The Department of Homeland Security is preparing a rule that would award H-1B visas by wage levels rather than random draw. Federal reviewers cleared the proposal last month, paving the way for a significant change in how skilled foreign workers are selected.