FDNS Site Visits of H1B Employers and the Impact of New H1B Regulations

The Fraud Detection and National Security (FDNS) Directorate, a division of the U.S. Citizenship and Immigration Services (USCIS), conducts unannounced site visits to H1B employers as part of its compliance and fraud prevention efforts. These visits aim to verify the legitimacy of H1B petitions and ensure that employers adhere to program requirements. Recent changes in H1B regulations have influenced the scope and frequency of these visits, affecting both employers and employees. Moreover, it is widely expected that the USCIS increasingly will shift focus toward enforcement efforts under the Trump administration. Therefore, employers should be familiar with how FDNS site visits are conducted, and what can be done in advance to prepare for them.

Understanding FDNS Site Visits

FDNS site visits typically are unannounced and involve a USCIS officer visiting the work location specified in the H1B petition. The precise nature of the site visit may vary, but the officer typically will engage in some or all of the following activities:

• Verify the physical existence of the business.
• Confirm the employment of the H1B worker at the designated worksite.
• Interview the H1B employee and employer representatives.
• Review payroll records, work schedules, and other documentation.
• Assess compliance with the terms of the labor condition application (LCA).

These visits primarily focus on preventing fraudulent activity and ensuring that H1B workers are being paid the required wage and working under the conditions specified in the petition.

Employer Compliance During FDNS Site Visits

Employers are required to cooperate fully with FDNS site visits to demonstrate compliance with H1B regulations. To ensure proper adherence, employers should:

• Designate a Point of Contact: Assign a knowledgeable representative, such as an HR personnel or immigration attorney, to handle site visits and provide necessary documentation.
• Provide Immediate Access to Records: Ensure that essential documents, including the Public Access File (PAF), payroll records, and employee work schedules, are readily available for review.
• Allow Interviews: Employers must permit FDNS officers to interview the H1B employee, HR personnel, and relevant supervisors. Employees should be briefed on the nature of site visits and instructed to answer questions truthfully.
• Ensure Worksite Consistency: The physical workspace, job duties, and salary of the H1B employee should align with what was reported in the H1B petition and LCA. Any discrepancies must be addressed and updated as necessary.
• Follow Up After the Visit: If the employer receives a Notice of Findings or a request for additional information following a site visit, they should respond promptly with accurate and complete documentation to avoid penalties or revocations.

Significance of the New H1B Regulations Effective January 2025 on FDNS Site Visits

The H1B regulations that took effect in January 2025 further impact FDNS site visits by introducing stricter compliance measures and broader oversight. Key changes include the following:

• Enhanced Worksite Compliance Measures – Employers may be required to provide more detailed documentation regarding job locations, including remote and hybrid work arrangements. FDNS officers have greater authority to assess compliance at multiple worksites.
• Increased Scrutiny on Specialty Occupations – Site visits may now place a greater emphasis on verifying job duties and employee qualifications, especially for employees placed at third-party client sites. Depending on circumstances, FDNS may check with end-clients to confirm whether the end client’s minimum requirements match the employer’s minimum requirements.
• Expanded Enforcement Against Fraud and Misrepresentation – FDNS are now equipped with additional resources to detect fraud, including leveraging data analytics to flag inconsistencies in employer filings. Employers found to have submitted misleading information will face heightened penalties.
• Greater Transparency in Wage Determination – Under the 2025 regulations, the FDNS may enforce more rigorous wage verification processes, requiring employers to substantiate prevailing wage determinations with greater clarity. Site visits can involve detailed reviews of compensation structures to prevent underpayment of H1B workers.

These regulatory changes reinforce the importance of compliance preparedness for H1B employers. Companies should proactively update policies, ensure accurate documentation, and maintain transparency to navigate the evolving regulatory landscape effectively.

Importance of the Public Access File (PAF)

One of the key compliance requirements for H1B employers is maintaining a public access file (PAF). The PAF must be readily available for inspection and should contain essential documentation, including the following:

• The certified LCA
• A summary of the wage rate for the H1B employee
• An explanation of how the wage was determined
• Documentation of the prevailing wage source
• A statement of notice to workers or bargaining representatives

The PAF plays a crucial role during FDNS site visits, as it serves as proof that the employer is complying with wage requirements and labor conditions. Failure to maintain a properly documented PAF can lead to penalties and compliance issues.

Best Practices for H1B Employers

To prepare for FDNS site visits and mitigate compliance risks, employers should engage in the following safeguards:

• Audit your existing PAFs to ensure the records are complete in case of an inspection.
• Maintain accurate and up-to-date employee records, including payroll information and work locations.
• Train HR personnel on how to handle unannounced site visits professionally.
• Ensure H1B employees understand their job roles, wages, and worksite details as per the petition.
• Keep documentation organized, including LCAs, employment agreements, and organizational charts.

Conclusion

With the implementation of new H1B regulations, site visits have become more stringent, further emphasizing the need for employers to remain vigilant in ensuring their compliance. Proper preparation and adherence to regulatory requirements, including the maintenance of a well-documented PAF, can help H1B employers navigate these visits successfully and avoid potential penalties. The Murthy Law Firm is available to assist employers preparing for possible site visits, including conducting audits of existing PAFs.

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