DOJ Launches H-1B Discrimination Probes as Visa Program Faces Scrutiny 2025

H-1B scrutiny is finally on a new level in September 2025, with the US Department of Justice initiating various discrimination cases against companies that allegedly prefer foreign workforce to qualified American citizens. The move is a huge step forward in the enforcement of the Trump administration, re-directing its attention to domestic worker protection.

Justice Department Opens Multiple Civil Rights Investigations

On September 5, 2025, the DOJ said it has initiated investigations, under its Protecting US Workers Initiative, into many cases in its Civil Rights Division. The investigations are into claims that companies are systematically opting to hire H-1B visa workers rather than American workers who can fit the job description.

Dhillon told reporters that the Immigrant and Employee Rights section of its Civil Rights Division has many open investigations into unfair hiring practices, and the list keeps growing under its Protecting US Workers Initiative. We would also like to engage anyone with knowledge of such practices to report them to the Civil Rights Division to help us decide whether an investigation and enforcement action is required.

These announcements come at a time when H-1B visa scrutiny is increasing amid more comprehensive changes to immigration policies that the administration is considering.

Also Read: US Issues Over 1 Million Non-Immigrant Visas to Indians

Current H-1B Program Statistics and Impact

The H-1B program allows US employers to hire foreign professionals in specialised fields, including technology, medicine, and engineering. Recent data shows a dramatic decrease in registrations, attributed to new fraud prevention measures and the implementation of a beneficiary-centric selection process.

Recent Enforcement Actions Signal Policy Shift

The DOJ has already acted concretely within its reinforced enforcement strategy. In June 2025, California-based technology recruiter Epik Solutions agreed to pay $71,916 in order to settle claims that it was violating the Immigration and Nationality Act through job advertisements that were limited to H-1B visa applicants.

This case is the first major case to be resolved under the re-energised Protecting US Workers Initiative, and it sends a strong signal to employers that the administration is determined to enforce the anti-discrimination laws. Firms committing such discrimination should be aware that the days when the federal government ignores the protection of American workers have passed, Dhillon said in the announcement of the Epik Solutions settlement.

Also Read: Immigration Groups Prepare for Potential Second Trump Administration

Political Opposition Builds Against Current System

The scrutiny of the H-1B visa has been reinforced by mainstream republican leaders who believe that the program is a disservice to American workers. The program has been described by Florida Governor Ron DeSantis as a complete sham, with the governor claiming that American workers are being laid off by companies that employ temporary immigrant employees, especially Indian nationals, on temporary visas.

Commerce Secretary Howard Lutnick said he supported the removal of the existing lottery system in an appearance on Fox News, saying, "I am working on changing the H-1B program because that is terrible. He proposes that wages, or merit, be used as a system of sharing rather than a system of selection.

Upcoming Policy Changes Could Reshape Selection Process

The H-1B visa scrutiny has prompted the Trump administration to fast-track several major policy reforms that could fundamentally alter how skilled foreign workers enter the United States. These changes represent the most significant overhaul of the H-1B program in over two decades, moving away from the current lottery-based system toward merit and wage-based selection criteria.

Beneficiary-Centric Lottery Already in Place

To mitigate the issue of a single person being entered in the lottery by various companies a number of times, USCIS introduced a new beneficiary-oriented lottery system in FY 2025. This shift has already paid off, and the eligible registrations have reduced substantially. This, said Morgan Bailey, a partner at Mayer Brown and former Homeland Security veteran, equalises the playing field, so the more unique candidates a company registers, the higher the number of approvals is likely to occur.

Wage-Based Selection System Under Review

The Department of Homeland Security is preparing a rule that would award H-1B visas based on wage levels rather than random selection. Federal reviewers cleared the proposal in August 2025, potentially representing the most significant change to the program in decades.

Industry Response and Expert Analysis

Legal experts recognise that it may be true that some abuse is inherent in the system, but that wholesale changes may be counterproductive. Cornell immigration law professor Stephen Yale-Loehr warned of doing away with the whole program. In all of the government programs, there are some individuals who attempt to defraud the system. However, we cannot afford to put the baby with the bathwater and get rid of the H-1B visa program, Yale-Loehr told reporters. He observed that the majority of employers fulfil the regulations, and the expenses and unpredictability of the process are better to hire US workers where possible.

Also Read: Trump's Re-election Signals Potential Overhaul of H-1B Visa Program

Impact on Indian Professionals and Tech Sector

The reforms have impacted Indian professionals, especially since they make up more than three-quarters of the annual H-1B visa grants. This move towards wage-based selection may have severe consequences on Indian IT firms and entry-level employees who are looking to start a career in the United States.

Surveys conducted recently suggest that anxiety levels are increasing among Indian professionals who are already based in the US on H-1B status with 45% indicating that they would go back to India should they lose their jobs and have no other sponsored work.

Reporting Mechanisms and Public Involvement

The DOJ has established multiple channels for reporting suspected discrimination:

• Civil Rights Division portal for discriminatory job advertisements

• Telephone hotlines for workplace violations

• Online submission forms for human trafficking concerns related to visa programs

Also Read: US Visa Rejection Reasons That You Should Know About

Looking Ahead: Future of the H-1B Program

The scrutiny of H-1B visas seems to have increased more since the administration is preparing more reforms. USCIS Director Joseph Edlow recently alluded to coming announcements, saying his biggest worry was to keep US citizens out of the job market, particularly graduates of universities with STEM degrees.

Combined with ongoing investigations by the DOJ, the looming wage-based selection regulations and the escalating political pressure, the year 2025 may represent a watershed moment for the future of the H-1B program.

Conclusion

H-1B visa scrutiny represents more than just policy adjustments—it reflects broader debates about immigration, workforce protection, and America's approach to attracting global talent while safeguarding domestic employment opportunities. As investigations proceed and new rules take effect, both employers and foreign workers must navigate an increasingly complex regulatory environment that prioritises American worker protection above traditional skilled immigration pathways. For official guidance on reporting visa-related discrimination, visit the U.S. Department of Justice Civil Rights Division. To know more about DOJ launches H-1B visit TerraTern now!