Project Firewall: What the EEOC’s New Focus Means for Sponsoring Employers

The Equal Employment Opportunity Commission (EEOC) has introduced Project Firewall, a focused enforcement initiative that directly impacts employers who sponsor foreign national employees. This program strengthens oversight at the intersection of employment law and immigration sponsorship.

1. What is Project Firewall?

Project Firewall is something that started on September 19 2025. It is a change from how things were done before. Before people had to complain about something for the authorities to act.. Now with Project Firewall the authorities can take action on their own. The Secretary of Labor has the power to start investigations into companies that sponsor H-1B visas if they think something is not right. They do not have to wait for someone to report a problem. The Secretary of Labor can start an investigation into H-1B sponsoring employers if they have a reason to do so. This is what Project Firewall is about it is, about Project Firewall taking a more active role.

2. Why the EEOC Launched Project Firewall

• The EEOC started Project Firewall because they are worried that some companies are treating workers unfairly. These companies are giving jobs to workers instead of American workers and the EEOC thinks this is not right. The EEOC believes that when companies do this it is a form of discrimination against people based on where they're from.

• The EEOC Chair, Andrea Lucas is leading this effort. She says that just because someone is a worker it does not mean they will get a job. The EEOC wants to make sure that companies are not treating workers badly just because they do not have a visa.

• The main goal of Project Firewall is to keep a company's hiring decisions from an employees immigration status. The EEOC wants to make sure that companies are not using visa sponsorship to discriminate against workers or to get back at them for something. The EEOC and Project Firewall are working to protect the rights of workers and make sure they are treated fairly. The EEOC is taking this step to stop companies from favoring workers, over American workers.

3. Who Is Most Affected?

• H-1B Sponsoring Employers: These employers are hit hard those in tech, healthcare and staffing.

• Staffing & Outsourcing Firms: Companies that leave employees on the bench or have visa holders compared to US workers are affected.

• H-1B Dependent" Employers: These are employers with a workforce that's more, than 15 percent H-1B.

• H-1B Sponsoring Employers and H-1B Dependent employers feel the impact.

4. What the EEOC Is Actively Investigating

The EEOC and DOL are currently looking for specific "red flags" in the hiring and employment lifecycle:

Discriminatory Job Ads: Postings that explicitly state "H-1B Preferred" or "H-1B Only."

• Onerous Application Processes: Making it intentionally more difficult for U.S. workers to apply (e.g., during the PERM labor certification process) than for visa holders

• Disparate practices are happening when it comes to work. Some companies are letting American workers go when they are not working on a project. They keep the workers who are in the country on a visa.

• There is also a difference in what people are getting paid. Companies are paying workers with H-1B visas a lot money, than American workers who are doing the same job. The Equal Employment Opportunity Commission thinks that this is because companies like to hire workers because they are cheaper.

5. Risks, for Sponsoring Employers

The stakes are really high now. A Project Firewall investigation can lead to problems.

Here are some risks:

• Massive Back Pay: The company may have to pay a lot of money to U.S. Workers who were not hired or were let go.

• $100,000 Extra Fees: New H-1B petitions now come with higher costs.

• Debarment is like a death penalty, for companies. This means they are not allowed to sponsor any workers for a long time.

• Multi-Agency Audits happen when the EEOC starts investigating. This can cause the DOL and DOJ and USCIS to start auditing at the time.

6. What Employers Should Do Now

Look at your job postings. Check your website and LinkedIn. Make sure you do not say anything that suggests you prefer people who need visa sponsorship.

• Review the way you handle people who are not working on projects now. Make sure that if you have to let people go it is because they are not doing a job not because of their visa status. Employers should do this to be fair, to everyone, including people who need visa sponsorship. Employers should also make sure their job postings are fair.

• Check Your Public Access Files (PAF): The DOL is treating "technical errors" in paperwork as substantive violations. Ensure your LCAs and wage determinations are airtight.

• Train Hiring Managers: Educate your TA (Talent Acquisition) teams that "cost-saving" is not a legal defense for preferring a visa holder over a U.S. applicant.

7. What This Means Long Term

Project Firewall is a change for companies that often sponsor H-1B visas. From 2026 on these companies will have to think of sponsorship as something that can get them into trouble if they do not do it correctly. The government wants to make sure that companies do not treat workers as their second choice. They want companies to prioritize workers. This is what Project Firewall is about. Project Firewall is like a warning, to companies that sponsor H-1B visas. It tells them that they have to be very careful and make sure they are following all the rules.

Good Luck.