Bill to ban Indian Firms from hiring H-1B, L-1 Visa workers introduced in Congress

Bill to ban Indian Firms from hiring H-1B, L-1 Visa workers introduced in Congress

A ‘H-1B and L-1 Visa Reform Act of 2016’ introduced by Democratic Congressman Bill Pascrell from New Jersey and Republican Dana Rohrabacher from California, if passed by the US Congress, is expected to prevent companies from hiring H-1B employees if they employ more than 50 people and more than 50 per cent of their employees are H-1B and L-1 visa holders.

The bill by the bipartisan group of two U.S. lawmakers introduced in the House of Representatives a legislation, will primarily affect the majority of big Indian and U.S. IT companies, as they heavily depend on H-1B and L-1 visas in the U.S.

Generally, a citizen of a foreign country who wishes to enter the United States must first obtain a visa, either a nonimmigrant visa for temporary stay, or an immigrant visa for permanent residence. Temporary worker visas are for persons who want to enter the United States for employment lasting a fixed period of time, and are not considered permanent or indefinite. Each of these visas requires the prospective employer to first file a petition with U.S. Citizenship and Immigration Services (USCIS). To work in a specialty occupation.

H1-B visa requires a higher education degree or its equivalent. Includes fashion models of distinguished merit and ability and government-to-government research and development, or co-production projects administered by the Department of Defense.

L category visa allows the visa holder to work at a branch, parent, affiliate, or subsidiary of the current employer in a managerial or executive capacity, or in a position requiring specialized knowledge.  Individuals must have been employed by the same employer abroad continuously for 1 year within the three preceding years.

U.S. businesses use the H-1B visa program to employ foreign workers in specialty occupations that require the theoretical or practical application of a body of highly specialized knowledge, including but not limited to scientists, engineers, or computer programmers.  He US Congress set the current annual cap for the H-1B category at 65,000 for the year 2016.

Before the bill is signed into a law by President Barack Obama, it needs to be passed by the Senate, wherein it has not been tabled so far. Notably, the two sponsors of the bill come from the two American states that have the maximum concentration of Indian Americans.

“America is producing many skilled, high-tech professionals with advanced degrees and no jobs. By ‘in-sourcing’ and exploiting foreign workers, some businesses are abusing the visa programs and undercutting our workforce to reap the rewards,” Pascrell said. “Without the critical reforms our bill proposes, American workers will continue to be unfairly displaced and visa workers will continue to be mistreated — both of which are unacceptable.”

Noting the foreign outsourcing companies are the top users of the H-1B and L-1 visa programs, a media statement issued by the congressman’s office said over the years a number of concerns have been raised about how certain companies have been using these visa programs, including a 2011 report from the Government Accountability Office calling for reform.

Pascrell and Rohrabacher had introduced a similar version of this bill in 2010, which could not gain enough support in Congress. The lawmakers said the H-1B and L-1 Visa Reform Act of 2016 would close loopholes in the H-1B and L-1 visa programs, reduce fraud and abuse, provide protections for American workers and visa holders, require more transparency in the recruitment of foreign workers and increase penalties on those who violate the law.

That would require employers to make a good faith effort to recruit and hire American workers before bringing in visa workers, and prohibit employers from replacing American workers or giving preference to visa holders when they are filling open positions, they said.

It would provide more authority to the departments of Homeland Security and Labor to investigate fraud and abuse in the H-1B and L-1 programs.

Modifying existing H-1B wage requirements and established wage requirements for L-1 workers, the bill would provide visa holders with a list of rights before they enter the U.S. so that they are better protected against mistreatment or underpayment of wages.

The American Federation of Labor and Congress of Industrial Organizations and the Institute of Electrical and Electronics Engineers have endorsed the bill.

“We applaud (the) long-term commitment to addressing the glaring gaps in protections in our current skilled visa programs,” AFL-CIO government affairs department director William Samuel wrote in support of the bill. “These loopholes have resulted in the mistreatment of H-1B workers and U.S. workers alike, and have led to the egregious displacement scandals that continue to make headlines and discredit these programs.”

Added IEEE president Peter Eckstein, “It is more than clear that the H-1B and L-1 visa programs are being used by major companies across our economy to hire cheap, disposable workers in place of their American employees. Reports of Americans being fired and replaced by non-Americans, who will never be invited to become Americans, can no longer be dismissed as mere ‘anecdotes.’ Rather, outsourcing companies dominate the H-1B and L-1 programs, annually costing America tens of thousands of good, middle-class jobs,” he added.

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