The Department of Justice (DOJ) has ignited a firestorm by expanding its whistleblower reward program to crack down on corporate abuse of U.S. immigration visas, a move targeting employers who allegedly prioritize foreign labor over American workers. Announced in late May, the initiative subjects violations of H-1B, OPT, and other visa programs to federal scrutiny, with rewards for insiders reporting misconduct. The policy, aligned with Attorney General Pam Bondi’s February decree elevating immigration enforcement as a top DOJ priority, has alienated outsourcing giants but earned praise from labor advocates who argue structural visa fraud has hollowed out domestic job markets.
Structural visa abuse draws federal scrutiny
The DOJ’s focus on white-collar migration fraud reflects growing awareness of systemic exploitation within U.S. visa programs. Federal audits and lawsuits have unearthed practices like discriminatory hiring and subcontractor pyramids that favor foreign workers, often from India. “These companies are replacing experienced, qualified Americans with less-skilled, more controllable visa workers,” said Jay Palmer, a labor expert and immigration advocate. Internal emails from staffing firm IDC Technologies, for instance, instructed recruiters to exclude non-Indian candidates, while Tata Consultancy Services (TCS) employees reportedly sought “desi” (Indian) hires for U.S. roles.
