The US Department of Labour has launched a large-scale investigation into alleged misuse of H-1B visas, labour trafficking, and related fraudulent practices.
The Trump Administration has reignited concerns surrounding the H-1B visas with the US Department of Labour launching an investigation into the alleged misuse of the employment visa alongside labour trafficking and other fraudulent labour practices. As officials announced the probe, US-headquartered IT services firm Cognizant, which has the majority of its employees in India, was also mentioned among the companies under scrutiny.“Today, we launched a massive H-1B fraud investigation. @POTUS promised the Golden Age of the American Worker—and he’s delivering. Foreign labor fraud steals jobs from Americans, enables human trafficking, creates dangerous worksites, and threatens public safety. No more,” Anthony D’Esposito, Inspector General, US Department of Labour, announced in a social media post.Speaking in a US television interview, Anthony D’Esposito, Inspector General of the US Department of Labour, said that the government has issued notices to multiple companies that, he alleged, are gaming the H-1B programme. “We have already issued dozens of subpoenas and will track down every lead,” he said. Esposito mentioned that the government has received intel from whistleblowers about companies, including IT major Cognizant. Cognizant did not respond to businessline’s query regarding the developments.US officials cite need to protect American jobs“American jobs ought to go to American workers and not foreign fraudsters, and the Department of Labour is fighting back against it,” US Vice President JD Vance also said on Wednesday at an event in Milwaukee.Previous attempts to tighten H-1B rulesThe US government had previously sought to make the H-1B visa regime more stringent when President Donald Trump signed an order imposing a one-time $100,000 fee on new petitions. However, a federal judge struck down the requirement last month.Tech industry remains largest H-1B beneficiaryIndians have historically been among the largest beneficiaries of H-1B visas. The industry that relies heavily on H-1B visas is the tech industry, which accounts for roughly 60 to 70 per cent of all new applications in recent years. Other top industries include consulting and professional services, engineering and manufacturing, healthcare and medical research and higher education. Data shows that IT service majors like Infosys, TCS, and Cognizant, alongside US big tech companies like Amazon, Meta, and others, are major users of the employment visa category.H-1B approvals decline amid increased scrutinyThe US Administration’s decision to launch a large investigation comes amid a decline in H-1B approvals. According to data from HR services firm Xpheno, 52,360 new H-1B visas have been approved in fiscal year 2026 (YTD), compared with 113,485 in 2025 and 139,692 in 2024.Published on July 9, 2026
