In yet another effort to reform the H-1B and L-1 employment visa programs that allow many skilled foreign workers to work in the US, two US law makers have introduced a bill- 'H-1B and L-1 Visa Reform Act of 2016,' in the House of Representatives. This bill proposes to prevent companies that employ more than 50 people and more than fifty percent of whose employees are H-1B and L-1 visa holders from hiring more workers on these visas.
The bill if passed, would greatly impact big Indian IT companies that are hugely reliant on H-1B and L-1 visas for their businesses. Infosys, Wipro or TCS that already have more than fifty per cent of employees on these visas could be potentially prevented from hiring more professionals on H-1B and L-1 visas. Companies like Facebook or Microsoft will continue to be able to hire workers on visas until fifty per cent of their employees are H-1B and L-1 visa holders.
The lawmakers believe that the bill will put to halt the long standing abuse of the work visa programs by employers and the exploitation of foreign workers, put back to work qualified American professionals who have been rendered unemployed, reduce fraud and abuse and bring about more transparency in the recruitment of foreign workers. Moreover, the bill would impose increased penalties for violation of the law.
US employers would be required under the bill to take reasonable efforts to recruit and hire American workers before bringing in foreign workers, thereby preventing replacement of American workers. The bill proposes new wage requirements for H-1B visa-holders and establishment of wage requirements for L-1 workers. It would also provide more authority to the Departments of Homeland Security to investigate fraud and abuse in the H-1B and L-1 programs.
Outsourcing of American jobs has become quite a critical issue in the 2016 presidential elections. While there are initiatives being taken to deter outsourcing of local jobs such as recently increasing the H-1B and L-1B processing fees, there is no new regulation or policy to actually restrict or downsize the work visa program. The 85,000 H-1B cap (out of which 20,000 are for applicants with US Master's degree) has remained in place for several years now. Given the current sentiment and concerns regarding unemployment in the US, it is unlikely that the H-1B cap will increase in the future. Indian companies will probably have to rely on local US workforce to fill jobs.
Before the bill is signed into law by the President, it would need to be approved by the Senate
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