Senators Chuck Grassley and Dick Durbin have introduced a bipartisan legislation that would reform the H-1B visa program, consistent with the US Congress's intent to ensure that qualified American workers are given the first opportunity at high-skilled job opportunities. The bill seeks to prohibit companies from hiring H-1B employees, if they employ more than 50 people in the US and more than 50 percent of those employees are H-1B and L-1 visa holders.

"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. Reform of the H-1B visa program must be a priority," Grassley said.

"Undoubtedly, this is a major setback for Indian IT companies. The Bill, if it goes on to become a law, would be a speed breaker for the thriving IT business. Even though the Bill purportedly targets saving 'qualified American jobs', this development should also be seen in the background of the forthcoming US Presidential elections scheduled in 2016. Senators will take up people centric issues," said Rakesh Prabhu, partner-immigration practice in Bengaluru-based ALMT Legal.

Vikram Shroff, head of HR law practice at leading law firm Nishith Desai Associates, said that, “while the Bill does not seek a complete ban on H-1B and L-1 visas, given that Indian technology companies are heavily dependent on this route to send their employees to the US for implementing client projects, any restriction imposed on such visa categories was likely to lead to a significant impact and could trigger a review of their client commitments and existing business model.”

"If this Bill is enacted, US companies will be prohibited from hiring foreign workers under the H-1B and L-1 visa categories, if at least 50 per cent of their employees have already been employed on such visas. The Bill also gives wide powers to the law enforcement authorities to investigate and penalize for non-compliances," Shroff said.

Indian IT companies have been the largest recipients of H-1B visas and have come under intense scrutiny by lawmakers.

By Premji