The visas, originally designed to help companies fill critical skills gaps, have been used by Indian information technology firms to send thousands of engineers and programmers to the U.S. to work.
“There’s a sense of urgency here for Americans who are losing their jobs to lesser skilled workers who are coming in at lower wages on a visa program that has gotten away from its original intent,” said Senator Grassley in a statement.
The visas, originally designed to help companies fill critical skills gaps, have been used by Indian information technology firms to send thousands of engineers and programmers to the U.S. to work.
“There’s a sense of urgency here for Americans who are losing their jobs to lesser skilled workers who are coming in at lower wages on a visa program that has gotten away from its original intent,” said Senator Grassley in a statement.
Below is what the bill to shake up the system proposes for H-1B and L-1 visas, a type of permit for intra-company transfers, says, at a glance.
The bill in full is here.
Why Do the Lawmakers Want to Limit H-1B Holders?
The senators who introduced the bill say they want to make qualified American workers the “first priority for employers.” The bill requires firms to make efforts to recruit U.S. citizens first, ahead of H-1B visa holders.
How Do They Want to Do It?
Any company with more than 50 staff won’t be able to hire H-1B-visa holders if more than half of their employees already hold skilled-worker permits.
“This provision would crack down on outsourcing companies that import large numbers of H-1B and L-1 workers for short training periods and then send these workers back to their home country to do the work of Americans,” the statement from Mr. Grassley said.
Anything Else?
The draft law would stop firms replacing U.S. workers with H-1B or L-1 visa holders. Reports of some companies using American workers who are about to be laid off to train H-1B holders to do their job from abroad, have caused concern.
How Would It Be Monitored?
The bill gives the Department of Labor enhanced authority to review, investigate, and audit firms to make sure they are sticking to the rules. It would also penalize fraudulent or abusive conduct. Firms would need to provide records on H-1B and L-1 holders, including wage data, worker education levels, place of employment and gender. Any employer with more than 100 employees and 15% of them on H-1B visas will be audited every year to make sure they are complying.
Will the H-1B Lottery Remain?
At the moment, H-1B visas are allocated to companies through a process of random selection. The new bill proposes allocating the work permits on merit to the top foreign students at U.S. universities and giving a leg up to those who hold more advanced degrees, earning higher wages and with the most valuable skills.
What About L-1 visas?
The bill would introduce a minimum wage for L-1 workers and would give the Department of Homeland Security the right to investigate, audit and enforce compliance with L-1 program requirements.
It would also seek assurance from firms that intra-company transfers of people with specialized knowledge take place between legitimate branches of an organization and don’t involve shell facilities. According to the new bill, a person with “specialized knowledge” would mean “an individual whose advanced level of expertise and proprietary knowledge of the employer’s product, service, research, equipment, techniques, management, or other interests of the employer are not readily available in the United States labor market”
What Are the Penalties?
If the proposed law is passed and an employer is found to violate the terms of it they must pay a fine of between $5,000 and $25,000 for each violation and will be liable for any employees harmed by the violation through lost wages or benefits. The company will not be able to ask to employ another overseas skilled worker for at least a year.
by wall street journal