The new bill with H-1B visa limits to hurt Indian IT firms

November 16, 2015
US is all set to pass the immigration bill with the foremost implications for $146 billion IT sector of India and Indian IT employees. The bill look to prevent the firms from employing H-1B workers if they hire over 50 individuals in the US and over 50% of those workers are L-1B and H-1B visa holders.

If the bill is passed, it would place relentless limitations on the IT firms of India that are the major users of the H-1B visas. Although firms have not disclosed the information, it is believed that large IT firms of India have over 50% of their workers on L-1 and H-1B visas.

The new bill with H-1B visa limits to hurt Indian IT firms

The previous week, the US senators had introduced the legislation that will reform the H-1B visa program, constant with the intentions of the US Congress for ensuring that the qualified US workers are given the first opportunity at job opportunities related to high skills.  Both the Senators had argued that these H-1B visas are destined to fill the gaps in the specialized areas that are not filled by the Americans.

Senators also argued that the outsourcing firms import big numbers of L-1 and H-1B employees for short training periods and then send these employees back to their home nation for doing the work of Americans.

Indian IT firms had been the major recipients of the H-1B visas and had come under the intense scrutiny by the lawmakers.

The bill also gave the department of labour the improved power to investigate, review and audit the employer’s compliance with the program needs along with penalizing the abusive and fraudulent conduct. It also entails the production of extensive statistical information about the L-1 and H-1B visa programs which also includes the employee level of education, wage information, gender and place of job.

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