Immigration

Srinivasa Reddy Kandi: FDNS Inspections of H1B Employers and the Effects of Recent H1B Regulations.

March, 05, 2025-05:11

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FDNS Inspections of H1B Employers and the Effects of Recent H1B Regulations:

The Fraud Detection and National Security (FDNS) Directorate, a branch of the U.S. Citizenship and Immigration Services (USCIS), carries out unannounced inspections of H1B employers as part of its initiatives to ensure compliance and prevent fraud. These inspections are designed to authenticate the validity of H1B petitions and confirm that employers are following the program's regulations. Recent modifications to H1B policies have impacted the frequency and scope of these inspections, influencing both employers and employees. Additionally, it is anticipated that the USCIS will increasingly emphasize enforcement actions during the Trump administration. Consequently, it is essential for employers to understand the process of FDNS site visits and to take proactive measures in preparation.

Understanding FDNS Site Visits
FDNS site visits are generally unannounced and involve a USCIS officer arriving at the worksite indicated in the H1B petition. The specific activities during the site visit may differ, but typically, the officer will engage in some or all of the following actions:

- Verify the physical presence of the business.
- Confirm the employment status of the H1B worker at the specified location.
- Conduct interviews with the H1B employee and employer representatives.
- Examine payroll records, work schedules, and other relevant documentation.
- Evaluate compliance with the labor condition application (LCA) terms.

These inspections are primarily aimed at preventing fraudulent practices and ensuring that H1B workers receive the mandated wages and work under the conditions outlined in their petitions.
Employer Compliance During FDNS Site Visits

Employers must fully cooperate with FDNS site visits to ensure compliance with H1B regulations. To facilitate this process, employers should take the following steps:

Designate a Point of Contact: Appoint a knowledgeable individual, such as an HR representative or immigration attorney, to manage site visits and supply necessary documentation.

Provide Immediate Access to Records: Make sure that critical documents, including the Public Access File (PAF), payroll records, and employee work schedules, are easily accessible for review.

Allow Interviews: Employers are required to allow FDNS officers to interview the H1B employee, HR staff, and relevant supervisors. Employees should be informed about the nature of site visits and instructed to respond to questions honestly.

Ensure Worksite Consistency: The physical work environment, job responsibilities, and salary of the H1B employee must match what was stated in the H1B petition and Labor Condition Application (LCA). Any inconsistencies should be rectified and updated as needed.

Follow Up After the Visit: If the employer receives a Notice of Findings or a request for further information after a site visit, they should respond quickly with accurate and comprehensive documentation to prevent penalties or revocations.
Importance of the New H1B Regulations Effective January 2025 on FDNS Site Visits

The H1B regulations implemented in January 2025 significantly influence FDNS site visits by establishing stricter compliance protocols and enhancing oversight. Notable changes include:

Strengthened Worksite Compliance Requirements – Employers may need to furnish more comprehensive documentation regarding job locations, including those for remote and hybrid work setups. FDNS officers now possess increased authority to evaluate compliance across multiple worksites.

Heightened Examination of Specialty Occupations – Site visits are likely to focus more on verifying job responsibilities and employee qualifications, particularly for those assigned to third-party client locations. Depending on the situation, FDNS may reach out to end clients to ensure that their minimum requirements align with those of the employer.

Broadened Enforcement Against Fraud and Misrepresentation – FDNS has been provided with additional tools to identify fraudulent activities, including the use of data analytics to identify discrepancies in employer submissions. Employers found to have provided false information will encounter stricter penalties.

Increased Transparency in Wage Verification – The 2025 regulations empower FDNS to implement more stringent wage verification processes, requiring employers to clearly substantiate prevailing wage determinations. Site visits may involve thorough examinations of compensation structures to prevent the underpayment of H1B workers.
These regulatory updates underscore the necessity for H1B employers to be prepared for compliance. Organizations should proactively revise their policies, ensure precise documentation, and uphold transparency to effectively navigate the changing regulatory environment.
Significance of the Public Access File (PAF)
A fundamental compliance obligation for H1B employers is the maintenance of a public access file (PAF). This file must be easily accessible for review and should include critical documentation, such as:

- The certified Labor Condition Application (LCA)
- A summary of the wage rate for the H1B employee
- An explanation of the wage determination process
- Documentation of the prevailing wage source
- A notice statement to workers or bargaining representatives

The PAF is vital during FDNS site visits, as it demonstrates the employer's adherence to wage standards and labor conditions. Neglecting to maintain a properly documented PAF can result in penalties and compliance challenges.

Best Practices for H1B Employers
To prepare for FDNS site visits and reduce compliance risks, employers should implement the following measures:

- Conduct audits of existing PAFs to ensure completeness for potential inspections.
- Keep accurate and current employee records, including payroll data and work locations.
- Train HR staff on how to manage unannounced site visits effectively.
- Ensure H1B employees are well-informed about their job responsibilities, wages, and worksite specifics as outlined in the petition.
- Organize documentation systematically, including LCAs, employment contracts, and organizational charts.

Conclusion
With the introduction of new H1B regulations, site visits have become more rigorous, highlighting the necessity for employers to remain proactive in ensuring compliance. Adequate preparation and adherence to regulatory standards, including the upkeep of a thoroughly documented PAF, can assist H1B employers in successfully navigating these visits and avoiding potential penalties.

Srinivasa Reddy Kandi is an Immigration policies researcher and immigration laws analyst.
Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi
Disclaimer: The information presented here is general in nature and might not be applicable in any given situation. It should not be interpreted as legal advice or taken for granted that it is always current.