Wednesday, April 29, 2009

Proposed H-1B Visa Reforms & Its Restrictions


What Is It?

In what could turn out to be a big blow to H1 B holders and those who wish to apply for it, a legislation has been introduced in the US Senate which would require American firms to first recruit qualified local workers, discouraging to employ H1-B or L1visa holders.

The bill, prevents the employers from hiring H1-B or L-1 visa workers, if they amount to more than 50 percent of the total employee strength in the company. In other words only those companies who would employ a large number of Amercian workers will be eligible for H-1B visas.

Senator Dick Durbin and Chuck Grassley, who has introduced the H-1B and L-1 Visa Reform Act, claims that this reform would help crack down on fraud that allows U.S. companies to hire foreign workers even when U.S. workers are available. He calls this bill an important step towards a stop to outsourcing of American jobs and discrimination against Americans.

How Will It affect Indian Companies?

If voted into law, the new legislation could affect the Indian IT companies adversely. It would mean Indian IT companies in the US will need to hire locally for their work. This will also result in IT companies needing to alter their onsite-offshore mix…
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