U.S. set to impose special fees for H1 B, L1 visas

A bipartisan Bill that the U.S. Congress is set to pass on Friday will impose a special fees of $4,000 and $4,500 for H1B and L1 visas respectively in such a way that Indian IT companies will be the worst affected. Democrats and Republicans reached an agreement on the omnibus spending Bill on a day Prime Minister Narendra Modi shared his concerns about the proposal with President Barack Obama.

Immigration 

India companies to be hit

The new fees will be applicable to companies that have at least 50 employees, and more than 50 per cent of them are on non-immigrant H1 B and L1 visas. It will mean Indian companies operating in the U.S – such as TCS and Wipro — will be affected by it, while American companies will have only a fraction of their employees on non-immigrant visas and would stay under the 50 per cent threshold.

Though the U.S. began charging a fee of $2000 for H1 B visas in 2010, the number of people taking it has only been on the rise. The 2010 bill lapsed on October 1. The new bill, though terming the fees to be “temporary”, will be valid for ten years, up to 2025. According NASSCOM, the $2000 fees raised for the U.S. $70-80 million every year.

“The Prime Minister shared with President Obama the concerns of the Indian IT industry and professionals on the proposed legislation in the U.S. Congress relating to H1B and L1 visas,” a statement issued by the PMO said.

Part of the money raised through the special fees will fund the health care for 9/11 first responders under the 9/11 Health and Compensation Act. Part of it will fund a biometric entry and exit data system under the Department of Homeland Security.

The H1B visa is a non-immigrant visa that allows U.S. companies to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields.

Credits: thehindu.com

US Senators introduce legislation to cut H1B visas by 15,000

Senators Nelson says the bill directly targets outsourcing companies that rely on lower-wage foreign workers to replace equally-qualified US workers

H-1B Visa

Two American Senators have introduced a legislation in the Senate proposing to cut the number of popular H-1B visas by 15,000 and that such a visa be given to highest wage earner first.

The legislation in this regard was introduced by Senators Bill Nelson of the Democratic Party and Jeff Sessions of the Republican Party.

“By cutting the number of visas available each year and requiring those visas be given to the highest-wage earners first, this bill directly targets outsourcing companies that rely on lower-wage foreign workers to replace equally-qualified US workers,” Nelson said.

Currently every year a maximum of 85,000 H-1B visas can be issued including 20,000 for those who completed higher education in science, technology, engineering and math (STEM).

The popular work visa has been given to a large number of IT professionals from India over the years. The bill proposes to reduce the number of visas available by 15,000. It would also require the department of homeland security to prioritize the allocation of these 70,000 H-1B visas to foreign workers based on their salary.

Nelson said the measure will help ensure that the H-1B visa programme is once again being used as it was originally intended: to attract foreign workers with highly specialised skills not found among the available US workforce.

Last month, Nelson and a handful of his Senate colleagues filed a separate piece of legislation to reform the H-1B visa programme.

Specifically, it would prohibit any employer from replacing a US worker with an H-1B visa holder, a media release said. It would also require employers to prove that they first tried to recruit American workers prior to hiring an H-1B visa holder and bar companies that employ more than 50 people from hiring any additional H-1B employees if more than half of their employees are already H-1B visa holders, it added.

The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise in specialized fields. 

Credits: livemint.com

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