H-1B reform bill introduced in US House of Representatives

WASHINGTON: In what will be a big blow to IT firms in India , a legislation was introduced in the US House of Representatives on Monday mandating that the minimum salary of H-1B visa holders be doubled to $130,000.If the legislation is passed, it will become very difficult for American companies to use H1-B visas to hire foreign workers , including IT professionals from India.The BSE IT index slumped over four per cent at news of the introduction of the new legislation.The legislation "offers a market-based solution that gives priority to those companies willing to pay the most," said Congressman Zoe Lofgren , who introduced it. "This ensures American employers have access to the talent they need, while removing incentives for companies to undercut American wages and outsource jobs," he said.The legislation, called the High-Skilled Integrity and Fairness Act of 2017, prioritises market-based allocation of visas to those companies willing to pay as much as 200 per cent of a wage calculated by the survey.The legislation also proposes eliminating the 'lowest pay' category. The raised salary level - to more than $130,000 - is more than double the current H-1B minimum wage of $60,000, which was established in 1989 and has since remained unchanged."My legislation refocuses the H-1B programme to its original intent - to seek out and find the best and brightest from around the world, and to supplement the US workforce with talented, highly-paid, and highly-skilled workers who help create jobs here in America, not replace them," said Lofgren.The Congressman said the legislation also proposes removing the 'per country' cap for employment-based immigrant visas, so that all workers are treated more fairly and to move to a system where employers hire the most skilled workers without regard to national origin.It raises the salary level at which H-1B dependent employers are exempt from attestation requirements to a new required wage level of 35 percentile points above the median national annual wage for Computer and Mathematical Occupations published by the Department of Labour Occupational Employment Statistics (roughly $132,000), which would be adjusted in the future without the need for new legislation, and eliminates the Master's Degree exemption for dependent employers.The legislation sets aside 20 percent of the annually allocated H-1B visas for small and start-up employers (50 or fewer employers) to ensure small businesses have an opportunity to compete for high-skilled workers, while still being protected from outsourcing.Among other things, Lofgren's legislation removes visa hurdles for students and other temporary visa holders by building a bridge from F-1 student status to Lawful Permanent Residence. It also removes paperwork burdens by streamlining H-1B filing requirements and reducing administrative costs.The legislation tightens employee protection by stipulating that employers may not reduce beneficiary wages, regardless of whether the deduction is in accordance with a voluntary authorisation by the employee.It makes exceptions for taxes, garnishments and deductions that are reasonable and customary in the occupation.In a related development, Senator Sherrod Brown announced the introduction of an H-1B and L-1 Visa Reform Act in the Senate. The Act, he said, would close loopholes in the H-1B and L-1 visa programs and provide increased protections for both US workers and visa holders."We need to crack down on the fraud and abuse that allows corporations to avoid paying Americans fair wages and exploit foreign workers," said Brown."During his campaign, President Trump promised to increase oversight of our H-1B and L-1 visa programs and reform starts with this bipartisan legislation to ensure that American businesses are giving American workers a fair shot at good-paying jobs," he said.The H-1B and L-1 Visa Reform Act would require employers to first offer a vacant position to an equally or better qualified American worker before seeking an H-1B or L-1 visa holder.It would also establish wage requirements for L-1 workers and improve H-1B wage requirements to encourage companies to hire qualified American workers and prevent them from using foreign workers as a source of cheap labour.Under the H-1B and L-1 Visa Reform, the Department of Labor and the Department of Homeland Security will have additional oversight authority to investigate fraud and abuse and also to increase penalties for companies that violate the bill's requirements.The bill would require the two departments to share information so that visa petitions are effectively scrutinised.