Spot audits needed

But Ron Hira, vice president of career activities at The Institute for Electrical and Electronics Engineers Inc. in New York and an assistant professor of public policy at the Rochester Institute of Technology, argued that the government's enforcement mechanism is weak because it relies on complaints from H-1B workers. The Department of Labor doesn't have the power to make spot audits of companies, but Hira said the agency needs to be able to do that if it is to be proactive about such cases.

Hira said the settlement is something of a disincentive for H-1B workers because it took six or seven years to resolve and is no windfall for the workers affected.

However, Vic Goel, an immigration attorney in Greenbelt, Md., said the Labor Department action is "a clear indication that the system is working effectively."

The H-1B program has been the subject of heated contention. Opponents argue that the program is used to hire cheap labor and facilitate the offshoring of U.S. jobs. Supporters contend that foreign workers are necessary in order to meet U.S. labor needs and keep jobs in the country.