What's new

House Committee Unites to Clamp Down on Indian Firms’ Use of H-1B Visas

cloud4000

SENIOR MEMBER
Oct 11, 2015
4,822
-8
4,686
Country
India
Location
United States
https://www.wsj.com/articles/house-lawmakers-unite-on-outsourcing-bill-in-rare-show-of-bipartisanship-1514379600

House Committee Unites to Clamp Down on Indian Firms’ Use of H-1B Visas
By Laura Meckler
The new rules apply only to companies that are heavy users of the program, or “H-1B dependent.” Lawmakers changed the definition of “H-1B dependent” to make sure technology companies that hire hundreds of foreigners every year, such as Facebook Inc., weren’t affected.

In turn, the House bill, the Protect and Grow American Jobs Act, has infuriated Indian outsourcing companies and the Indian government, according to someone who advises the government.

Nasscom, an information technology trade group in India, argues the measure “unfairly and arbitrarily” targets a handful of companies “while imposing no new requirement on the vast majority of companies that use the visas to do the … exact same things,” according to a statement from the group’s president, Rentala Chandrashekhar.

The new rules would require that firms either pay workers more–as much as $135,000 a year—or prove they tried to recruit Americans. The bill requires that no Americans are laid off by either the outsourcing firm or the clients that they serve for the entire length of the visa. It also authorizes Labor Department investigations and raises fees.

Scott Corley, who runs the pro-immigration Compete America coalition made up of technology companies, said the bill was a welcome step toward separating high-tech companies from outsourcers.

“We don’t want to be overly broad in applying rules that are meant to deal with one type of use but may have unintended consequences for another type of use that people agree with,” he said.

The legislation also would put Indian firms such as Infosys Ltd. and Tata Consulting Services Ltd. at a disadvantage against a handful of competitors, such as International Business Machines Corp. and Accenture Ltd., even though they also employ a large number of foreign workers and use a similar business model. That is because those companies have many divisions, which keeps the portion of their overall workforce using H-1B visas low and their firms from being defined as “dependent.”

Part of the measure’s sweep is that it reaches the U.S. clients of the Indian outsourcers. The U.S. Chamber of Commerce opposes the bill, saying it sets “dangerous precedents” regarding the government’s power to interfere with companies. The bill “proposes a shock to the system that could have negative economic repercussions in various industries,” the Chamber wrote in a letter.

The legislation was passed by the Judiciary Committee last month. It is unclear when it will be considered by the full House.

Each year, companies enter a lottery for 85,000 new H-1B visas, and demand far outstrips supply. In 2016, outsourcers won nearly one in four of the visas—and more in previous years.

The anger toward outsourcing firms stems from their business model, which often involves U.S. corporations laying off their own, better-paid employees and replacing them with outsourced foreign workers.

“We have a broken H-1B system,” Rep. Darrell Issa (R., Calif.), the bill’s chief sponsor, said in an interview. “It’s being gamed by people paying the bare minimum, taking too many visas that would otherwise go to a broader group of applicants who would pay more.”

Under existing rules, a company that has more than 15% of its workforce using H-1B visas is considered H-1B dependent and must show that it has tried to hire Americans, among other things. It can get out of those requirements by paying at least $60,000 a year, or the prevailing wage, to the foreign worker.

Mr. Issa raised the $60,000 threshold for avoiding the rules and added a host of other provisions to bring Democrats on board.

The California Republican also changed the definition of “H-1B dependent” to 20% of a company’s workforce from 15%. That mostly protects high-tech companies such as Facebook and Qualcomm Inc., which both have been H-1B dependent in recent years, according to Labor Department filings. The companies declined to comment.

The percentage of foreign workers is growing at companies like Facebook in part because the H-1B workers don’t return home. Instead, companies sponsor them for green cards so that they can stay permanently.

But a long wait for green cards, particularly for people from India, means that workers are stuck in the H-1B status, and companies see its visa dependency rate climb.

Rep. Zoe Lofgren (D., Calif.), who usually opposes Republican immigration measures, helped write this one. She defended the H-1B program for companies that are using it as it was “originally created” but attacked the outsourcing model. Often, she said, Americans are replaced by foreign workers. “These outsourcing companies can do this because of deep and longstanding flaws in the H-1B program.”

Write to Laura Meckler at laura.meckler@wsj.com
 

navtrek

SENIOR MEMBER
Feb 4, 2009
3,169
3
2,446
Country
India
Location
India
https://www.wsj.com/articles/house-lawmakers-unite-on-outsourcing-bill-in-rare-show-of-bipartisanship-1514379600

House Committee Unites to Clamp Down on Indian Firms’ Use of H-1B Visas
By Laura Meckler
The new rules apply only to companies that are heavy users of the program, or “H-1B dependent.” Lawmakers changed the definition of “H-1B dependent” to make sure technology companies that hire hundreds of foreigners every year, such as Facebook Inc., weren’t affected.

In turn, the House bill, the Protect and Grow American Jobs Act, has infuriated Indian outsourcing companies and the Indian government, according to someone who advises the government.

Nasscom, an information technology trade group in India, argues the measure “unfairly and arbitrarily” targets a handful of companies “while imposing no new requirement on the vast majority of companies that use the visas to do the … exact same things,” according to a statement from the group’s president, Rentala Chandrashekhar.

The new rules would require that firms either pay workers more–as much as $135,000 a year—or prove they tried to recruit Americans. The bill requires that no Americans are laid off by either the outsourcing firm or the clients that they serve for the entire length of the visa. It also authorizes Labor Department investigations and raises fees.

Scott Corley, who runs the pro-immigration Compete America coalition made up of technology companies, said the bill was a welcome step toward separating high-tech companies from outsourcers.

“We don’t want to be overly broad in applying rules that are meant to deal with one type of use but may have unintended consequences for another type of use that people agree with,” he said.

The legislation also would put Indian firms such as Infosys Ltd. and Tata Consulting Services Ltd. at a disadvantage against a handful of competitors, such as International Business Machines Corp. and Accenture Ltd., even though they also employ a large number of foreign workers and use a similar business model. That is because those companies have many divisions, which keeps the portion of their overall workforce using H-1B visas low and their firms from being defined as “dependent.”

Part of the measure’s sweep is that it reaches the U.S. clients of the Indian outsourcers. The U.S. Chamber of Commerce opposes the bill, saying it sets “dangerous precedents” regarding the government’s power to interfere with companies. The bill “proposes a shock to the system that could have negative economic repercussions in various industries,” the Chamber wrote in a letter.

The legislation was passed by the Judiciary Committee last month. It is unclear when it will be considered by the full House.

Each year, companies enter a lottery for 85,000 new H-1B visas, and demand far outstrips supply. In 2016, outsourcers won nearly one in four of the visas—and more in previous years.

The anger toward outsourcing firms stems from their business model, which often involves U.S. corporations laying off their own, better-paid employees and replacing them with outsourced foreign workers.

“We have a broken H-1B system,” Rep. Darrell Issa (R., Calif.), the bill’s chief sponsor, said in an interview. “It’s being gamed by people paying the bare minimum, taking too many visas that would otherwise go to a broader group of applicants who would pay more.”

Under existing rules, a company that has more than 15% of its workforce using H-1B visas is considered H-1B dependent and must show that it has tried to hire Americans, among other things. It can get out of those requirements by paying at least $60,000 a year, or the prevailing wage, to the foreign worker.

Mr. Issa raised the $60,000 threshold for avoiding the rules and added a host of other provisions to bring Democrats on board.

The California Republican also changed the definition of “H-1B dependent” to 20% of a company’s workforce from 15%. That mostly protects high-tech companies such as Facebook and Qualcomm Inc., which both have been H-1B dependent in recent years, according to Labor Department filings. The companies declined to comment.

The percentage of foreign workers is growing at companies like Facebook in part because the H-1B workers don’t return home. Instead, companies sponsor them for green cards so that they can stay permanently.

But a long wait for green cards, particularly for people from India, means that workers are stuck in the H-1B status, and companies see its visa dependency rate climb.

Rep. Zoe Lofgren (D., Calif.), who usually opposes Republican immigration measures, helped write this one. She defended the H-1B program for companies that are using it as it was “originally created” but attacked the outsourcing model. Often, she said, Americans are replaced by foreign workers. “These outsourcing companies can do this because of deep and longstanding flaws in the H-1B program.”

Write to Laura Meckler at laura.meckler@wsj.com

Oh dont worry most of the times people from India get recruited only after searching for American candidates for close to six months. It will not be that difficult to prove that either.
 

Sully3

SENIOR MEMBER
Nov 23, 2015
4,347
-7
6,583
Country
United Kingdom
Location
Pakistan
So India paying the price for rejecting USA UN vote.

India back stabbed israel and USA at the first chance it got, damn these cunning snake charmers :omghaha:
 

cloud4000

SENIOR MEMBER
Oct 11, 2015
4,822
-8
4,686
Country
India
Location
United States
Oh dont worry most of the times people from India get recruited only after searching for American candidates for close to six months. It will not be that difficult to prove that either.

Maybe. But employers will have to provide more proof than they do now that they did so. This is not a joke. This measure has bipartisan support. This bill is specifically targeting BPO firms, not companies like Microsoft or Facebook.

So India paying the price for rejecting USA UN vote.

India back stabbed israel and USA at the first chance it got, damn these cunning snake charmers :omghaha:

As usual, you have no idea what you are talking about.
 

Sully3

SENIOR MEMBER
Nov 23, 2015
4,347
-7
6,583
Country
United Kingdom
Location
Pakistan
Maybe. But employers will have to provide more proof than they do now that they did so. This is not a joke. This measure has bipartisan support. This bill is specifically targeting BPO firms, not companies like Microsoft or Facebook.



As usual, you have no idea what you are talking about.
well the proof is infront of you but you Indians are feed and educated in temples so cant distinguish the truth. back stabbing Indians couldnt help themselves from back stabbing the jews and uncle sam at first chance they got.

90% of Indians are 'idiots'
https://timesofindia.indiatimes.com...Markandey-Katju-says/articleshow/17536647.cms

You can add yourself in the 90% section.
 

navtrek

SENIOR MEMBER
Feb 4, 2009
3,169
3
2,446
Country
India
Location
India
Maybe. But employers will have to provide more proof than they do now that they did so. This is not a joke. This measure has bipartisan support. This bill is specifically targeting BPO firms, not companies like Microsoft or Facebook.



As usual, you have no idea what you are talking about.

BPO well those are purely outsourced out of greed that might go to Philippines. Already India loosing heavily on that one to Philippines.

I was talking about software development as i have seen these personally we would wait for months and not get people and finally we would get people from offshore.

Which self-respecting country begs another country for visas? Weird. Only India.

ha ha :D
 

cloud4000

SENIOR MEMBER
Oct 11, 2015
4,822
-8
4,686
Country
India
Location
United States
well the proof is infront of you but you Indians are feed and educated in temples so cant distinguish the truth. back stabbing Indians couldnt help themselves from back stabbing the jews and uncle sam at first chance they got.

90% of Indians are 'idiots'
https://timesofindia.indiatimes.com...Markandey-Katju-says/articleshow/17536647.cms

You can add yourself in the 90% section.

Illiteracy is also a strong point with you. It feeds your ignorance. Only someone with low self-esteem would write garbage like this.

I was talking about software development as i have seen these personally we would wait for months and not get people and finally we would get people from offshore.

Well that's was the whole point of H-1B visa. The visa should remain, but not abused. I think this is what Congress wants.
 

Sully3

SENIOR MEMBER
Nov 23, 2015
4,347
-7
6,583
Country
United Kingdom
Location
Pakistan
Illiteracy is also a strong point with you. It feeds your ignorance. Only someone with low self-esteem would write garbage like this.



Well that's was the whole point of H-1B visa. The visa should remain, but not abused. I think this is what Congress wants.
OK Slumdog millionaire we dont want lessons on righteous
 

undercover JIX

ELITE MEMBER
Dec 6, 2008
8,268
0
7,904
Country
Pakistan
Location
Pakistan
But its part of Trumps new policy, at which Indians were jumping. Trump want economic balance with India and asked India to do more, India just fast track Trump's do more demand by voting against. Indians with beg, and accept do more demands..
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom