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How the Proposed Legistation for H1b and L1 Visa is Going to Impact IT Industry?

VisaH1b visa was introduced to help create American jobs. But, the critics say that under current law, an outsourcing company can use American workers to train H-1B guest-workers, fire the American workers and outsource the H-1B workers to a foreign country where they will do the same job for a much lower wage. But, U.S. Senators Dick Durbin (D-IL) and Chuck Grassley (R-IA) recently introduced The H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007 that can be applied if implemented to give priority to US workers and crack down on unscrupulous employers who deprive qualified Americans of high-skill jobs. The proposed legislation may impact bigger companies who have more than 50% guest workers.

The bill is going to:

1. Permit DOL to initiate investigations without a complaint and without the Labor Secretary’s personal authorization;

2.Authorize DOL to review H-1B applications for fraud;

3. Allow DOL to conduct random audits of any company that uses the H-1B program;

4. Require DOL to conduct annual audits of companies who employ large numbers of H-1B workers.

Durbins site justifies that there is a major abuse of H1b visa program all across the corporate world. It also says that those organizations who are pushing for H1b and L1 visa caused legal and regulatory problems for software developers and outsourcers. Similar proposals by Durbin and Grassley didnt pass last year.

I feel that every law is abused by some unscrupulous persons at some point of time. Every business wants to grow further both in terms of revenue and service. If a company who is running tremendous constraints of budget due to latest economic crisis hires some competent professional or outsources some of their non-core business, they can can save lot of money without compromising the quality of work.

On the contrary, if the business expands, American people are going to be benefited the most in comparison with foreign workers. So, limiting H1b or L1 visas is not going to address the root cause problem of the dilapidated US corporate world.

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