New H1B legislation for foreign techies may hurt Indian IT firms

Two powerful U.S. Senators have announced they will introduce a legislation which, if passed by the Congress, would give preference to foreigners studying in American universities, a move that will tighten the noose around the H1B visa programme and could hurt Indian IT firms.

The bill — to be introduced by Senator Chuck Grassley and Dick Durbin — will require U.S. Citizenship and Immigration Services to prioritise for the first time annual allocation of H1B visas. It will ensure the “best and brightest” students being educated in the U.S. receive preference for an H1B visa, a statement issued by the Senators said.

The preference system also gives a leg-up to advanced degree holders, those being paid a high wage, and those with valuable skills, it said.

“American workers first”

“Congress created these programmes to complement America’s high-skilled workforce, not replace it. Unfortunately, some companies are trying to exploit the programmes by cutting American workers for cheaper labour,” Mr. Grassley said.

“We need programmes dedicated to putting American workers first. When skilled foreign workers are needed to meet the demands of our labour market, we must also ensure that visa applicants, who honed their skills at American colleges and universities, are a priority over the importation of more foreign workers,” he said. “Our bill takes these steps to ensure that the programmes work for Americans and skilled foreign workers alike,” said Mr. Grassley, chairman of the Senate Judiciary Committee.

The legislation restores Congress’ original intent in the H1B and L1 visa programmes by increasing enforcement, modifying wage requirements and securing protections for both American workers and visa holders.

It is a critical component

“Reforming the H1B and L1 visa programmes is a critical component of fixing our broken immigration system and must be included in comprehensive immigration reform legislation,” Mr. Durbin said.

“For years, foreign outsourcing companies have used loopholes in the laws to displace qualified American workers and facilitate the outsourcing of American jobs. The H1B and L1 Visa Reform Act would end these abuses and protect American and foreign workers from exploitation. I thank Senator Grassley for partnering with me on this important bipartisan legislation,” he said.

The bill, inter alia, would crack down on outsourcing companies that import large numbers of H1B and L1 workers for temporary training purposes only to send the workers back to their home countries to do the same job.

Specifically, it would prohibit companies with more than 50 employees, of which at least half are H1B or L1 holders, from hiring additional H1B employees, the statement said.

More powers to Labour Dept.

The legislation gives the Department of Labour enhanced authority to review, investigate, and audit employer compliance with programme requirements, as well as to penalise fraudulent or abusive conduct.

It requires the production of extensive statistical data about the H1B and L1 programs, including wage data, worker education levels, place of employment and gender.

According to the Senators, the bill clarifies that working conditions of similarly employed American workers may not be adversely affected by the hiring of H1B workers, including those who have been placed by another employer at the American worker’s worksite.

In addition, it explicitly prohibits the replacement of American workers by H1B or L1 visa holders. These provisions address the types of abuses that have been well-documented in recent press reports.

Several reforms included

In addition, the bill includes several reforms of the L1 visa programme.

These include establishment of a wage floor for L1 workers; authority for the Department of Homeland Security to investigate, audit and enforce compliance with L1 programme requirements; assurance that intra-company transfers occur between legitimate branches of a company and don’t involve “shell” facilities; and a change to the definition of “specialised knowledge” to ensure that L1 visas are reserved only for truly key personnel.