USCIS Targets Low Wage Classifications in H-1B Technology Cases
On September 4–5, 2026, U.S. Citizenship and Immigration Services (USCIS) announced an enforcement action involving H-1B petitions reviewed by the Vermont Service Center.
USCIS identified petitions submitted by a major, unnamed IT consulting company in which skilled technology positions were classified at wage levels below what the positions’ duties, qualifications, and responsibilities supported. USCIS denied some petitions and revoked multiple approved petitions.
The agency stated that this practice undercuts required wages and creates unfair competition for U.S. workers.
USCIS did not publicly identify the employer. It also did not disclose the number of petitions involved or the specific occupations affected. The announcement nevertheless provides an important warning for employers and foreign workers navigating the H-1B visa 2026 environment.
The enforcement action demonstrates that USCIS may evaluate the substance of a position rather than accept the employer’s selected job title or wage level without further review.
Wage Levels Must Match the Actual Position
H-1B wage-level classification must reflect the actual position. The employer’s selected title does not control the analysis.
USCIS and the U.S. Department of Labor may examine:
- The position’s actual duties.
- The required education and field of study.
- Required experience and specialized skills.
- The degree of responsibility and independent judgment.
- Supervisory or project-management duties.
- The worksite and geographic area.
- The complexity of the technology, systems, or business functions involved.
- The relationship between the employer, worker, and end client in third-party placement cases.
The Department of Labor generally recognizes four prevailing wage levels. Level I generally corresponds to an entry-level position, while Levels II through IV reflect progressively greater experience, responsibility, and complexity.
An employer cannot select a lower level solely because the job title appears junior or because a lower wage reduces labor costs. If the duties and requirements establish a more advanced position, the wage level must support that conclusion.
The Role of Form ETA-9035 and the Required Wage
The Labor Condition Application, or LCA, is filed with the Department of Labor on Form ETA-9035/9035E. It records key information about the proposed H-1B employment, including:
- The occupational classification and SOC code.
- The worksite or worksites.
- The offered wage.
- The prevailing wage source.
- The applicable wage level, where required.
- The period of intended employment.
Under Department of Labor regulations, the employer must pay the H-1B worker the higher of:
- The actual wage paid to similarly qualified workers performing the same job for the employer; or
- The prevailing wage for the occupational classification and geographic area.
The actual wage is based on the employer’s compensation system for workers with similar experience and qualifications. The prevailing wage is based on the occupation, area of intended employment, and applicable wage data.
The wage paid must satisfy the required-wage obligation for the entire period of authorized employment. An employer that files an LCA with an inaccurate wage level, or fails to pay the required wage, may face enforcement by the Department of Labor and immigration consequences through USCIS.
The LCA, Form I-129 petition, employment agreement, payroll records, and actual job duties must describe the same position. Material inconsistencies create avoidable risk.
Why the Vermont Service Center Action Matters
The September 2026 action indicates that USCIS is treating wage classification as a substantive eligibility and compliance issue.
Historically, employers sometimes treated wage-level selection as a technical filing step. The Vermont Service Center action shows that USCIS may instead compare the selected level against the complete factual record.
For example, USCIS may question a Level I classification where the petition describes:
- Advanced software architecture responsibilities.
- Independent design or implementation authority.
- Specialized technical certifications.
- Responsibility for major client systems.
- Team leadership or supervision.
- Complex consulting assignments requiring substantial prior experience.
- Work that involves high-level decision-making or specialized client deliverables.
The legal issue is not whether every technology position must receive the highest wage level. Employers may use any level supported by the facts. The issue is whether the selected level accurately reflects the position’s real duties and requirements.
Under 8 C.F.R. § 214.2(h)(11)(iii), USCIS may revoke an approved petition when, among other circumstances, the petition contains inaccurate or misrepresented material facts, the petitioner violates the terms of the approved petition, or the petitioner fails to comply with applicable H-1B requirements.
Employer Compliance Steps for 2026
Employers should conduct a documented review of H-1B positions before filing new petitions and before extending or amending existing cases.
1. Audit job descriptions against wage levels
Review whether the written job description supports the assigned wage level. Do not rely exclusively on a standardized title or template.
The review should address:
- The required education.
- Minimum experience.
- Specialized knowledge.
- Independent judgment.
- Supervisory responsibility.
- Technical complexity.
- Client-facing or business-critical duties.
The job description must accurately describe the work the employee will perform.
2. Compare the LCA and petition evidence
Confirm that the LCA, Form I-129, support letter, employment agreement, organizational chart, and payroll records describe the same position.
Employers should identify inconsistencies involving:
- Job title.
- SOC code.
- Salary.
- Worksite.
- Employment dates.
- Required qualifications.
- Actual job duties.
- Client assignment.
A discrepancy may result in a Request for Evidence (RFE), site visit, denial, or revocation.
3. Review third-party placement records
IT consulting companies and staffing businesses face additional scrutiny when workers are assigned to client locations.
Employers should maintain records showing:
- The client or end user.
- The worksite address.
- The assignment period.
- The contractual relationship.
- Statements of work.
- Project documentation.
- Supervision and control arrangements.
- The employer-employee relationship.
- The employee’s actual duties and reporting structure.
The employer must be able to establish that the petition accurately describes the offered employment, even when the employee performs services at a third-party location.
4. Verify payroll and actual wage compliance
Review payroll records to confirm that the worker was paid at least the higher of the actual wage or prevailing wage. Check for unpaid salary, improper deductions, unpaid nonproductive time, or compensation below the wage stated in the LCA.
Employers should also maintain the required LCA records and Public Access File materials.
5. Prepare for RFEs and site visits
USCIS may request additional evidence or conduct a site visit. Employers should ensure that HR personnel, managers, workers, and client contacts understand the basic facts of the petition.
A compliance program should identify who will respond to government inquiries and how records will be preserved.
Consequences of H-1B Wage Non-Compliance
Potential consequences include:
- Denial of a pending H-1B petition.
- Revocation of an approved petition.
- Back-wage liability.
- Civil money penalties and fines.
- Government investigations.
- Debarment from participating in the H-1B program.
- Disruption of client assignments.
- Loss of lawful status for affected workers.
- Employment authorization problems.
- Complications with extensions, amendments, or future immigration benefits.
The consequences may affect both the employer and the foreign worker. Employer non-compliance can place the worker’s immigration status at risk even when the worker did not select the wage level or prepare the petition.
What H-1B Workers Should Know About Revocation and Travel
Revocation of an approved H-1B petition can affect a foreign worker’s status, employment authorization, international travel, and reentry.
An H-1B visa stamp does not independently establish current employment or status. A worker seeking admission generally must have a valid visa, a valid and unrevoked petition, and qualifying employment with the petitioning employer.
Before international travel, an H-1B worker should confirm that the underlying petition remains approved and accurately reflects the current employment. A worker should not assume that an unexpired visa stamp remains sufficient after petition revocation.
Travel may create additional complications when:
- USCIS has issued a revocation notice.
- The employer has withdrawn the petition.
- Employment has ended.
- A new petition is pending.
- The worker is relying on the grace period.
- The worksite or job duties have changed.
The 60-Day H-1B Grace Period
An H-1B worker in nonimmigrant status may receive a grace period of up to 60 consecutive days after employment ends, or the remaining period of authorized stay if shorter. The applicable period generally ends on the earlier of those dates.
The grace period may allow the worker to:
- Seek qualifying new employment.
- File a new H-1B petition through a different employer.
- File a change-of-status application.
- Depart the United States.
The grace period is not an automatic guarantee of continued employment authorization. It also ends when the worker departs the United States. Workers should obtain individualized legal advice before traveling, changing employers, or remaining in the United States after employment ends.
A final petition revocation may require immediate evaluation of the worker’s status, I-94 expiration date, employment history, and available immigration options.
Practical Guidance for Employers and Foreign Workers
Employers should treat wage-level review as a continuing workforce compliance obligation, not a one-time filing task.
Foreign workers should request and retain copies of:
- The approval notice.
- The LCA, when available.
- The employment agreement.
- Recent pay records.
- The I-94 record.
- Notices from USCIS or the employer concerning withdrawal or revocation.
- Records identifying the actual worksite and assigned duties.
Employers and workers should act promptly when USCIS issues an RFE, Notice of Intent to Revoke, or revocation decision. The response deadline and available remedies depend on the specific notice and procedural history.
Blasingame Law LLC provides business immigration solutions, including H-1B petition strategy, wage audits, workforce compliance reviews, RFE responses, and complex petition challenges. The firm also assists employers seeking a work visa for foreign employees and supports HR teams managing immigration-related compliance obligations.
Consult Blasingame Law LLC
The September 2026 USCIS enforcement action establishes that wage-level classification must be supported by the actual duties, requirements, and employment conditions. Employers should audit affected positions before filing new petitions or relying on existing approvals. H-1B beneficiaries should confirm petition status before international travel or continued reliance on employer-sponsored status.
Contact Blasingame Law LLC to consult with a business immigration attorney regarding H-1B compliance, wage audits, petition challenges, RFEs, site-visit preparation, or workforce compliance planning.
This article provides general legal information and does not constitute legal advice. Immigration rules, agency procedures, and enforcement policies may change. Employers and H-1B beneficiaries should obtain advice based on their specific facts and current USCIS, Department of Labor, and Department of State records.
