Tougher Climate Puts H‑1B Employers On Notice

Washington has turned up the heat on employment visas, and H‑1B employers and workers should treat the shift as a real compliance risk. A string of federal moves in 2025 tightened program integrity, revived enforcement aimed at hiring practices, and, in one high‑profile step, conditioned most new H‑1B entries on a steep supplemental payment. Together, they signal less tolerance for corner‑cutting and more scrutiny of how companies use skilled‑worker visas.

What Changed

On January 17, 2025, USCIS put a final rule into effect that modernizes the H‑1B program and updates Form I‑129, with integrity provisions designed to curb fraud and improve oversight. The agency also shifted to a beneficiary‑centric selection system and confirmed a higher $215 cap‑registration fee for the FY 2026 season. The H‑1B modernization rule took effect on January 17, 2025, eliminating grace periods for older petition forms and formalizing new anti‑fraud safeguards.

Then on September 19, 2025, the White House issued a proclamation restricting entry for most new H‑1B applicants unless the petition is accompanied by a $100,000 payment, subject to narrow exceptions and waivers. A $100,000 payment is now tied to most new H‑1B entries, a sharp departure from past practice and a clear statement of policy direction.

Enforcement Signals

Alongside policy changes, the Justice Department revived its Protecting U.S. Workers Initiative, bringing fresh cases against employers that allegedly favored temporary visa holders over qualified U.S. workers. In September 2025, one staffing firm agreed to pay $200,000 in civil penalties and overhaul its practices after DOJ found its recruiting unlawfully limited opportunities to H‑1B candidates. DOJ’s worker‑protection initiative is active again, and settlements now often include training and policy fixes, not just fines.

For employers, that means greater exposure on the basics: how jobs are advertised, how eligibility is screened, and whether verification practices treat candidates fairly regardless of citizenship status. Even inadvertent missteps during document checks can trigger investigations.

What To Do Now

Compliance hygiene matters more than ever. Re‑verify that Labor Condition Applications match actual work locations (including remote or hybrid setups), keep public access files complete and current, pay required wages during nonproductive time, and file timely amendments when roles or worksites change. Train recruiting and HR teams to avoid citizenship‑status preferences unless the law requires them. For pending or future filings, budget and timeline plans should account for the newer USCIS processes, fees, and documentation demands.

The political debate will continue. But the operational reality for H‑1B employers and visa holders is clear: regulators have new tools, and they are using them. Treat audits, site checks, and inquiries as likely—not hypothetical—and keep records audit‑ready from day one.

Sources

• RESTRICTION ON ENTRY OF CERTAIN NONIMMIGRANT WORKERS — The White House (September 19, 2025)
• H-1B Final Rule, H-2 Final Rule, and Revised Form I-129 Effective Jan. 17, 2025 — USCIS (January 15, 2025)
• FY 2026 H-1B Cap Initial Registration Period Opens on March 7 — USCIS (February 5, 2025)
• Civil Rights Division Fines Tech Company $200,000 for Discriminating Against U.S. Workers as Part of Settlement Agreement — U.S. Department of Justice (September 29, 2025)
• Anti-Immigration Sentiment Is Rising — H-1B Workers and Employers Must Take It Seriously — Reddy Neumann Brown PC (Accessed February 6, 2026)

Disclaimer: This article is for general information and is not legal advice. Employers and workers should consult qualified counsel about their specific circumstances.