DOL OIG launches H-1B/PERM fraud & trafficking investigation; workers urged to report
The U.S. Department of Labor Office of Inspector General (OIG) says it launched a major investigation and is intensifying enforcement efforts to combat alleged fraud and human trafficking in the H-1B and Program Electronic Review Management (PERM) systems. The OIG made the announcement on July 8, 2026.
OIG says the nationwide effort is meant to protect workers and strengthen the integrity of Department of Labor programs that address genuine labor shortages—not to excuse wrongdoing.
What OIG says it’s looking into
In its announcement, OIG described the kinds of conduct that prompt reporting, including:
- Fraudulent applications submitted by employers and labor brokers.
- Exploitation of foreign workers, including alleged coercive wage-kickback arrangements.
- Labor-market undercutting, including allegations of flooding the market with below-wage labor.
What this does not mean yet: An investigation-launch announcement is not a court finding, and it does not prove wrongdoing by any specific employer or case.
Who OIG says should come forward
OIG’s public awareness and reporting campaign is aimed at specific categories of potential workers/witnesses:
- U.S. workers who believe they were displaced or harmed by potential H-1B or PERM fraud or related industry practices.
- Foreign workers who believe they experienced exploitation, coercion, benching, or fraudulent recruitment practices.
- Any workers who believe they were compelled against their will to provide labor or services through force, fraud, or coercion.
How to report (and anonymity)
OIG says reports may be submitted through the DOL OIG Hotline. The hotline phone number listed by OIG is 1-800-347-3756.
OIG’s hotline guidance says you do not need to provide your name or other identifying information to file a complaint. However, OIG also warns that if you remain anonymous and investigators need more details, OIG may not be able to contact you later.
OIG also asks for detailed information, including who is involved, when the situation occurred (and whether it is ongoing), where it happened, what happened, and how it took place.
Cash rewards may be possible—what to watch next
OIG says cash rewards or other benefits may be available for information that assists the OIG or the U.S. government with timely prosecution.
For workers and employers, the practical next step is to watch for follow-through after this launch: whether OIG moves to referrals, prosecutions, or other enforcement updates tied to information submitted through the hotline.
Sources
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