Project Firewall’s open language, wide scope a litigation risk

The US government's Project Firewall, which outlines how to enforce the new H-IB visa rules, could expose employers, including Indian IT services firms, to investigation and litigation, given its open-ended language, experts say.

- Nehal Chaliawalla & Varun Sood

Launched by the US Department of Labour, Project Firewall stipulates launching probe against employers to maximize H-IB plan compliance. The Secretary of Labor will personally certify the initiation of investigations, which is a first for the department.

“The language in such provisions typically grants wide discretion to the US government to initiate litigation or enforcement actions, especially where national interest, security, or public policy concerns are cited,” said Rohitaashy Sinha, partner, King Stubb & Kasiva, Advocates and Attorneys.

Foreign firms must be mindful that these powers can be exercised not just against US entities but also against overseas companies with US touchpoints—whether through contracts, clients, data processing, or capital market presence, Sinha said. This includes Indian IT firms in the US and American multinationals that employ Indians under H-IB visa.