US Labor Department inspector general Anthony D’Esposito has warned employers against using fake jobs, sham employers and wage kickbacks to exploit the US employment-visa system, as Washington steps up a nationwide investigation into alleged H-1B and PERM fraud.The development is particularly significant for Indian professionals — people born in India accounted for 71 per cent of approved H-1B petitions in fiscal 2024, according to US Citizenship and Immigration Services data.“A visa is not a license to cheat American workers,” D’Esposito wrote on X on September 17, listing “fake jobs”, “sham employers” and “wage kickbacks”. He said businesses whose models depend on “gaming our immigration system” should expect investigations.D’Esposito has separately linked his investigation directly to H-1B visas. On September 15, he wrote on X that the “H-1B fraud machine is being exposed. One layer, one lead and one fraudster at a time.”His comments come as the Department of Labor’s Office of Inspector General pursues a nationwide investigation into alleged fraud involving the H-1B and PERM programmes. The OIG said in July that it was investigating allegations including fraudulent visa applications, wage kickbacks, exploitation of foreign workers and practices that could undercut US workers.In August, the OIG said investigators conducted field checks at locations in Dallas linked to companies with more than 500 approved H-1B petitions. The agency said several offices showed signs of inactivity. These findings form part of an ongoing investigation and do not by themselves establish wrongdoing by every company or worker associated with the petitions.The crackdown has already reached an Indian-origin IT major. The US Labor Department has suspended Cognizant’s PERM filings while authorities investigate alleged employment-visa fraud. The government has not publicly disclosed the specific allegations against the company or the number of applications affected.Story continues below this adWhat is H-1B and why does it matter to Indians?The H-1B is a temporary US work visa for foreign professionals in speciality occupations. PERM, meanwhile, is a labour-certification process generally used before an employer sponsors a foreign worker for an employment-based Green Card. The two processes can run alongside each other.Indians have a particularly large stake in the H-1B system. USCIS data show that 71 per cent of approved H-1B petitions in FY2024 were for beneficiaries born in India, compared with about 12% for those born in China.What else is changing?Separately, the Department of Homeland Security has proposed removing the discretionary 60-day grace period available to certain employment-based non-immigrant workers after they stop working. The proposal covers H-1B and several other visa classifications and their dependants. It has not yet taken effect.Under the current rules, eligible workers can generally receive up to 60 days after employment ends to seek another immigration option. DHS’s proposed rule would remove that regulatory grace period, potentially leaving affected workers with far less time to secure another lawful basis to remain in the US.The Express Global Desk at indianexpress.com which delivers authoritative, verified, and context-driven coverage of key international developments shaping global politics, policy, and migration trends. The desk focuses on stories with direct relevance for Indian and global audiences, combining breaking news with in-depth explainers and analysis. A major focus area of the desk is US immigration and visa policy, including developments related to student visas, work permits, permanent residency pathways, executive actions, and court rulings. The Global Desk also closely tracks Canada’s immigration, visa, and study policies, covering changes to study permits, post-study work options, permanent residence programmes, and regulatory updates affecting migrants and international students. All reporting from the Global Desk adheres to The Indian Express’ editorial standards, relying on official data, government notifications, court documents, and on-record sources. The desk prioritises clarity, accuracy, and accountability, ensuring readers can navigate complex global systems with confidence. Core Team The Express Global Desk is led by a team of experienced journalists and editors with deep expertise in international affairs and migration policy: Aniruddha Dhar – Senior Assistant Editor with extensive experience in global affairs, international politics, and editorial leadership. Nischai Vats – Deputy Copy Editor specialising in US politics, US visa and immigration policy, and policy-driven international coverage. Mashkoora Khan – Sub-editor focusing on global developments, with a strong emphasis on Canada visa, immigration, and study-related policy coverage. ... Read MoreStay updated with the latest - Click here to follow us on Instagram