Sunday, April 26, 2009

Durbin-Grassley H1B Visa Reform Bill: Do We Need it?


Sunday, April 26, 2009 | , , ,

U.S. Senators Dick Durbin (D-IL) and Chuck Grassley (R-IA) introduced "The H-1B and L-1 Visa Fraud and Abuse Prevention Act of 2007" late last week to overhaul the H-1B and L-1 visa programs to give priority to American workers and crack down on unscrupulous employers who deprive qualified Americans of high-skill jobs.

The H-1B visa program allows American companies and universities to employ temporary foreign workers who have the equivalent of a U.S. bachelor's degree in a job category that is considered by the U.S. Citizenship & Immigration Services to be a "specialty occupation". The L-1 visa program allows companies to transfer certain employees from their foreign facilities to their U.S. facilities for up to seven years.

"Our immigration policy should seek to complement our U.S. workforce, not replace it," Durbin said. "Some employers have abused the H-1B and L-1 temporary work visa programs, using them to bypass qualified American job applicants. This bill will set up safeguards for American workers, and provide much-needed oversight and enforcement of employers who fail to abide by the law."

"This is about protecting the American worker," said Senator Grassley. "We're closing loopholes that employers have exploited by requiring them to be more transparent about their hiring and we're ensuring more oversight of these visa programs to reduce fraud and abuse. A little sunshine will go a long way to help the American worker."

Now Senate is not only looking into abuse of H1B, but have also started taking close look at L1 visa. With Senate requesting tougher scrutinizing of worker visas, soon we will see many companies refraining from hiring skilled workers to avoid unecessary hassles.

Senators should understand when a company hires a H1B visa holder, they have to spend almost $4000-$5000 (filing and lawyer fees) in addition to the base pay they offer to the prospective employee. A company would not invest in an individual unless they are not able to find right candidate. The one reason companies usually do not get skilled workers is because two third of the US population are not ready to move across a county or state line. In the 21st century, there has been only 25 percent increase in people living in a state other than the one in which they were born (Source: U.S. Census Bureau Online). Thus there are less number of right candidates available in and around the city of interest. On other hand, non-immigrant foreign skilled workers are willing to move across the state for the right jobs as they are motivated to fulfill their American dreams.

If above bill is passed in Senate, it will make America globally less competitive. Many skilled workers would start looking at other European countries. These countries would love to have skilled workers to have edge over their counterpart. Many countries have already requested World Bank to define a unified currency to measure world economy than depending on America only. If this would happen America could lose their niche in the world.

On other hand, Foreign students and workers who might prefer to stay in the US can, and increasingly will, also return to their home countries to launch businesses. They can then compete with American companies instead of adding value to them. And when they return home, they can honestly say that America is not the land of opportunity for people like them.

The H-1B program is very small in relative numbers (new H-1B visa holders represent just 7 out of every 10,000 workers in the United States, according to the National Foundation for American Policy). It is difficult to understand why is it always a reason of worry among Senators? Or they just want someone to take the blame for the country's economic crisis and rise in unemployment rate.

Provisions of the Durbin-Grassley bill would change existing law in the following ways



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9 comments:

Anonymous said...

This is drivel.

The new Durbin-Grassley bill is to prevent fraud. What specifically is the problem with preventing fraud?

Anonymous said...

DOL is already getting tough on scrutinizing LCAs from petitioners. USCIS would not approve cases unless petitioner is clean. So DOL/INS is already on it.This bill would not add anything to what DOL/USCIS is currently working on. There is no need of such amendment in the system when steps are alreadyy taken. This bill will do nothing but restrict employer from hiring skilled workers to avoid uncessary audits and paperworks.

SK said...

Professor Hunt's study shows that "H-1B, J-1 Immigrants are More Productive Than Americans".

Excerpt from the study: "Looking at hourly wages, Hunt’s study showed American workers, with a bachelor’s degree or higher, made $29.60 per hour compared to those, with the same education level, who came to the U.S. on a work visa and earned $34.20 per hour." Now I do not see how H1B visa is abused and workers are underpaid to displace American Worker.

http://blogs.wsj.com/economics/2009/04/27/h-1b-j-1-immigrants-more-productive-than-americans-study-says/

Anonymous said...

This is BS. I work with immigrant workers in IT every day. They are often less talented than US workers. That is why Professor Hunt is a professor, those that can't do, teach.

Anonymous said...

You indians are racists against Americans. you should all go home we dont need you, Americans are still smarter and more productive. Go home slumdogs.

Anonymous said...

While the H1b visa may still be required, the L1b visa should be curtailed. Most of the BPO/outsourcing companies (TCS/Wipro) use this visa to bring workers here, get trained and then replace american workers. I work for a multinational firm and have seen co-workers being replaced with TCS employees on L1s. This might help to some extend, however if L1s are not available, American firms will hesistate to outsource as many positions because of the remote location of TCS workers.

Anonymous said...

Good article. This legislation reflects the petty partisanship and protectionism of the commenters. If you really think this is about preventing fraud, you should look at the history of Senator Grassley's xenophobic legislation. Get real, rednecks - if the company can't hire an H-1 candidate, more often than not, they are sent to Europe, so all the support jobs associated with that highly skilled person, which are often american jobs, go to Europe instead. Wake up you retards.

Anonymous said...

Here is the real story of H1B .....

American Greed is the main culprit....false American Dream attracts the graduates (mostly engineers) to US, the American Staffing Companies (Pimps) usually preferred/primary vendor pockets almost >30% of the hourly rate, then the second in the chain (usually an Indian BodyShop)pockets 30% of the rate and pay to the innocent (bonded) programmer (laborer) rest 40%.

Essentially, on an average one H1B holder is supporting atleasr 2 American families. I've realized this after having 10 Years of experience (so called) in US.

I'm at a loss why H1Bs are called cheap labor workforce and tagged as hired off the street (H1B's basic requirement is having at leaset a Bachelor degree), above all how are these H1Bs able to cope up with xnophobic retards and school dropouts working as their colleagues...amazing..huh

Anonymous said...

I work for Infosys and we have a practice of not even looking at an American candidate for the position "At All"! We go in with the intent of bringing an offshore resource to do the work period. They will be more willing to bring in an offshore person and pay for their travel and expenses than to hire a local American candidate. This is a travesty!

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