Reports of fake Level 4 filings to game the wage-weighted lottery, how USCIS catches fraud, penalties for employers, and what legitimate Level 3-4 applicants should know
The first year of the wage-weighted H-1B lottery has created a new incentive for fraud: some consultancies and staffing firms are reportedly filing H-1B registrations at inflated prevailing wage levels (claiming Level 3 or 4) to get better lottery odds, with no intention of actually paying those wages. Here's what USCIS is doing about it and how it affects legitimate applicants.
| Wage Level | Selection Priority | Fraud Risk |
|---|---|---|
| Level 4 (Highest) | Highest odds | Highest fraud incentive — fake Level 4 filings |
| Level 3 | High odds | Moderate fraud risk — inflating from Level 2 |
| Level 2 | Moderate odds | Lower fraud incentive |
| Level 1 (Entry) | Lowest odds | Legitimate entry-level positions |
The H-1B registration only requires the employer to indicate the wage level offered. But after selection, the employer must file the full I-129 petition with a certified LCA (Labor Condition Application), which includes the actual prevailing wage determination from DOL and the actual offered salary. USCIS then cross-references the registration wage level with the petition LCA.
If an employer registered at Level 4 but the LCA shows Level 2, this creates an immediate red flag. USCIS can issue an RFE (Request for Evidence), deny the petition outright, or refer the case to the Fraud Detection and National Security (FDNS) unit. FDNS conducts site visits and audits — showing up unannounced at the employer's office to verify the position, salary, and working conditions.
Penalties for wage level fraud are severe: petition denial with prejudice, debarment from filing H-1B petitions for up to 2 years, DOL fines up to $35,000 per violation, and potential criminal prosecution under 18 U.S.C. § 1546 (visa fraud) with penalties up to 10 years imprisonment. For the worker, a fraudulent petition can result in visa revocation and bars on future immigration benefits.
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Search H-1B Sponsors on Wisa →Compare the wage level indicated on your registration with the actual salary in your offer letter. Look up the prevailing wage for your SOC code and work location on the DOL Foreign Labor Certification Data Center. If your actual salary falls in Level 1-2 range but the registration claims Level 3-4, your employer may be inflating. Ask your employer directly — you have a right to know the wage level and LCA details.
The petition will be denied, and your H-1B status (if already granted) could be revoked. You would need to find a new employer to file a new petition. While the worker is generally considered a victim of employer fraud (not a perpetrator), a denied/revoked petition can complicate future immigration applications. If you suspect fraud, consult an immigration attorney independently — not one hired by your employer.
Not all, but expect increased scrutiny. USCIS has indicated it will issue RFEs for Level 3-4 registrations that don't match the petition LCA or where the salary seems inconsistent with the position and location. Legitimate Level 3-4 employers should prepare strong documentation: offer letters with specific salary, comparable salary data, and clear justification for the wage level classification.
This is a serious situation. If the registration was filed at an inflated wage level and the actual salary doesn't match, the petition will likely be denied after selection. Worse, you could be associated with a fraudulent filing. Contact an independent immigration attorney immediately. You may need to find a new employer willing to file legitimately. Do not ignore this — the consequences of proceeding with a fraudulent petition are severe.