Third-Party Placement and H-1B Site Visits: Red Flags Employers Must Avoid
Third-party placement involves sending an H-1B employee to work at a client location rather than directly at the employer's site. While this practice is common in the IT and consulting industries, it introduces heightened regulatory attention. USCIS site visits can be triggered by third-party placement arrangements that appear risky or unclear.
When I first started advising employers on H-1B compliance, I quickly realized that third-party placement is one of the most scrutinized aspects by U.S. Citizenship and Immigration Services (USCIS). At Ruth Lane & Associates PLLC, I guide companies through H-1B employment to prevent violations that could trigger audits or denials.
My firm serves the Dallas-Fort Worth-Arlington area and surrounding communities, providing guidance on employment and non-immigrant visas. If you're placing H-1B employees at client sites, you must understand potential red flags, take steps to stay compliant, and reach out to my office for guidance.
Why USCIS Conducts Site Visits
Understanding why USCIS conducts site visits helps employers prepare effectively for them. These visits confirm the H-1B employee's work location, duties, and compliance with the original petition.
During a site visit, USCIS officers may request documentation that demonstrates the employer maintains control over the employee, including timesheets, work orders, and project assignments. When an employer can't produce sufficient documentation, the risk of an H-1B violation increases.
Common red flags for third-party placements include:
Lack of direct supervision: H-1B employees report exclusively to client staff without any oversight from their sponsoring employer.
Unclear job duties: The work performed at the client site differs significantly from what was described in the H-1B petition.
Rapid rotation between clients: Employees are frequently moved between client locations, creating a perception of instability and lack of control.
No formal contract with clients: If there's no written agreement detailing the employee's role and responsibilities, USCIS may question the validity of the placement.
Addressing these red flags requires proactive measures. Employers should document the employee's work schedule, maintain detailed work orders, and provide a point of contact who oversees the employee's work. Regular communication with H-1B employees helps verify that duties align with the original petition, reducing the likelihood of discrepancies during a site visit.
Compensation Considerations
The wage offered to an H-1B employee must match the terms stated in the Labor Condition Application (LCA). Deviations from the LCA, such as reductions in pay or unauthorized changes in job responsibilities, can trigger compliance investigations.
I advise employers to maintain accurate payroll records and review contracts with third-party clients to make sure wages remain consistent.
Documentation Is Key
Third-party placements also require vigilance regarding documentation. USCIS expects employers to have clear records demonstrating control over the H-1B employee. This includes:
Timesheets and project reports: Showing hours worked and tasks performed.
Employee evaluations: Evidence of employer oversight and performance monitoring.
Client agreements: Contracts outlining the H-1B employee's role and duration of placement.
Communication logs: Emails or meeting notes confirming instructions from the employer.
Without these records, an H-1B employer may be unable to prove compliance if a site visit occurs. Proper documentation not only protects the employer but also reassures employees that their placement is legitimate.
Maintaining Employer Control
An additional challenge arises when the client dictates the employee's schedule or job assignments. This scenario can be interpreted as a lack of employer control, one of the most common red flags in third-party placements.
To mitigate this risk, I recommend that employers maintain regular check-ins with both the client and the employee, document directives, and retain records of approvals for any project changes.
Preparing for Site Visits
Site visits can be intimidating, but preparation is key. I guide employers on what USCIS officers typically examine, such as:
Worksite location: Confirming the employee is actually working at the address listed in the H-1B petition.
Project assignments: Making sure the duties performed align with the petition.
Supervision structure: Demonstrating that the employer retains authority over the employee.
Employers who've ignored these elements often find themselves facing Notices of Intent to Revoke or Requests for Evidence. Proper preparation reduces the likelihood of adverse outcomes and gives the employer confidence during the site visit.
Employer Involvement Matters
Another risk to consider is the perception of the H-1B employee working primarily at a client site without meaningful engagement from the employer. USCIS evaluates whether the employer has enough involvement in assigning, reviewing, and supervising the employee's work.
When an employer's presence is minimal, site visits can raise questions about whether the employee is truly under the control of the petitioning employer.
Client Agreements and Contracts
Third-party placement arrangements also require attention to contracts with clients. Agreements should clearly state the employee's responsibilities, reporting structure, and the duration of the placement. Ambiguous contracts or verbal agreements may create compliance vulnerabilities. I encourage employers to maintain formal and documented client communications.
Assignment Duration and Turnover
Rapid turnover or short-term placements can also be problematic. USCIS may perceive frequent client rotation as a sign that the employee is effectively working for the client rather than the H-1B employer. To reduce this, I would recommend planning placements with enough duration and documenting each assignment with clear objectives and supervision plans.
Training and Orientation
Before deploying an H-1B employee to a client site, I advise employers to provide an orientation that clearly outlines the employee's reporting lines, expectations, and project objectives. This documentation not only clarifies roles but also provides evidence of employer control in the event of a site visit.
Communication Channels
Employers should maintain ongoing correspondence with both employees and clients to track assignments, progress, and any changes in work scope. This helps demonstrate active oversight and reduces the risk of third-party placement violations. Email chains, project updates, and regular meetings serve as valuable documentation for USCIS site visits.
Monitoring Payroll and Benefits
Payroll and benefits should also be closely monitored. Any discrepancies between the H-1B petition and actual compensation or benefits can be interpreted as non-compliance. Employers should regularly audit payroll records to confirm alignment with the LCA, particularly when employees are placed at third-party locations.
Ongoing Oversight
Some employers assume that once an H-1B petition is approved, monitoring is no longer necessary. However, USCIS site visits can occur at any time, especially when the placement is with a client rather than on the employer's premises. Regular internal audits of employee assignments, compensation, and documentation are critical to avoid violations.
Using Technology for Compliance
Technology can assist with compliance. Employers can use project management tools, timesheet software, and communication platforms to track assignments, hours worked, and client interactions. Documented logs from these systems can serve as evidence of employer control during site visits, reducing the risk of red flags.
The most critical factors in third-party placements are maintaining control, documenting work, confirming compensation aligns with the LCA, and keeping thorough records. Failure to address these areas can lead to serious consequences, including denial of future petitions, fines, or even loss of H-1B privileges.
Contact Me Today
If you're managing third-party placements for H-1B employees, I recommend seeking guidance early to avoid compliance pitfalls. I offer hands-on guidance to employers across various industries. I work closely with clients in the Dallas-Fort Worth-Arlington area to manage H-1B placements effectively and reduce risks associated with USCIS site visits. Don’t wait for a site visit to uncover problems—call my office today.