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US imposes strict conditions on H-1B hiring

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Agencies

Posted: Feb 07, 2009 at 1144 hrs IST

Washington In what could be seen as a setback to Indian IT professionals, the US Senate has voted for imposing strict conditions on hiring of people with H-1B visas by American companies receiving federal bailout money.

The amendment to the pending stimulus bill restricting the hiring of foreign workers, passed by the Senate through a voice vote on Friday, was a watered-down version of what was introduced earlier.

The original amendment had called for a blanket ban on H-1B hiring by companies that would have received money under the Troubled Assets Relief Programme (TRAP).

The amendment approved by the Senate was co-sponsored by Republican Senator from Iowa, Chuck Grassley, and independent Senator from Vermont, Bernie sanders.

The modified amendment requires that a company receiving TARP funds and applying for workers under the H-1B process must operate as an "H-1B dependent company."

This means, explained Grassley in a statement, that the companies will still be able to hire H-1B visa holders, but must comply with the H-1B dependent employer rules which include attesting to actively recruiting American workers; not displacing American workers with H-1B visa holders; and not replacing laid off American workers with foreign workers.

"Hiring American workers for limited available jobs should be a top priority for businesses taking taxpayer money through the TARP bailout programme," Grassley said.

With the unemployment rate at 7.6 per cent, there is no need for companies to hire foreign guest workers through the H1-B programme when there are plenty of qualified Americans looking for jobs, he argued.

Even as he supports the H-1B programme, which has mostly benefited Indian techies, Grassley said there is an urgent need for a reform in it.

The programme should be used in the way it was intended as a temporary measure to supplement a company's need for hi-tech or specialised workers when none are available in the US, he said.

In another statement, Sanders said the amendment would require bailed-out banks, where there have been layoffs, to hire only Americans for two years.

"The very least we can do is to make sure that banks receiving a taxpayer bailout are not allowed to import cheaper labour from overseas while they are laying off American workers," Sanders said.

"Wall Street caused the crisis, millions of people lost jobs, including 100,000 in financial institutions. Now they want to bring in foreign workers," Sanders said, adding: "Talk about adding insult to injury."

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Thanks! by Jim Phelps on 09 Feb 2009

Thanks!This is a start, but only a start!

H1B by Prem on 09 Feb 2009

H1B Visas must be stopped till the employment situation in USA improves. There is no point in getting foreign workers when firing local employees.

Good for India by Srikanth on 08 Feb 2009

I feel this is the very good opportunity to stop the brain drain from India. By this indian intellectuals stay with india and make contributions to indian economy. I agree, money makes a big role when you work in US. Govt should provide good opportunities. Why not we can take it positively.

The carrot that got me by Hrishikesh Raut on 08 Feb 2009

Damn! I was young and stupid. What did you expect me to do? I went for it, and trap was so well laid out that I did not realize till it was about 8 years in US!

H1 B visa by sudhak on 08 Feb 2009

If this is the case, then, Indian govt may consider closing its markets to US companies. The global quota for H1 B visas is not more than 100,000. Each application processing includes strict scrutiny by USICS and and predetirmined set of qualifications. Even organisations like Microsoft are for expansion of H1 B visa program as US lacked qualifies tech workers. H1 visa jobs has nothing to with the current lay offs. US companies utilised the Hight tech services of H1 b visa workers. They pay lowest amount of salary specified for the H1 visa. For that salary, no US citizen will agree to work. US as a whole benifited a lot by H1 B visa program and their contribution to US is immense.

Shame on our leaders by Rajaram on 07 Feb 2009

Where is the Indian government here? European Union and Canada issued strong statements about protectionism and USA withdrew its protectionist measures. Where is India here, promoting its products which are qualified service personnel in the tech sector. Shame on our leaders taking this lying down. $900 billion of funds and non GC holder Indians in the USA are eliminated from participating in this.

US imposes strict conditions on H-1B hiring by G. Banks on 07 Feb 2009

This is a good start. The US needs the superior skills of American workers, not the usual quality of the H1B worker.If you want to work hard, do it in your own country change that for the better. Do not expect America to continue to mistreat its citizens in favor of foreign labor. A new day is dawning and this is just the beginning.

US should protect its own interest first by Jatin on 07 Feb 2009

US has every right to protect its own interest. How India would have reacted if Bangladeshi and Pakistani people flood Indian job market? It's upto US government and companies to do needful to protect local jobs and stop exploitation of Indians there (forcing them to work much harder as compared to a typical American worker with less wage and benefits).

H1-B VISA by KEN SHAW on 07 Feb 2009

HI-B VISA SHOULD BE OPEN FOR THE SMART PEOPLE WHO REALLY WANT TO WORK HARD

Re: H1-B VISA by Andy on 08 Feb 2009

Well Ken has insinuated that americans are neither smart or work hard. I have seen many a H1-B visa holders who are grossly abused by their employers. Would you be ok if Indian companies hire bangladeshi's instead of Indians while executing private projects let alone government contracts? Being an Indian, I can vouch that I have seen many hard working Americans who are not only smart but also think twice before making baseless comments!!

Crooks acting saints by Baatul on 07 Feb 2009

First USA returns the social security of the returned H1Bs. They are then free to take their high moral grounds.

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