Related to : GS Paper-2

Ans :

Introduction-

The Protect and Grow American Jobs Act was introduced in the US Congress in January 2017. The bill roposes key changes in the H1-B Programme in order to stop misuse of the H1-B and L1 visas by the American companies.The bill also seeks to encourage companies to hire more American workers in order to tackle growing unemployment in the country.The new government of USA headed by President Donald Trump have drafted a new executive order aimed at overhauling the H-1B work-visa program that technology companies have long relied on to bring top foreign engineering talent to their US based locations.

The U.S. Congress is set to pass a bipartisan Bill. It is valid until September 2025, for 10 years.

Features of the Protect and Grow American Jobs Act:

 The bill was introduced by Republican Darrell Issa and Scott Peters. They represent California in the House of Representatives of the US Congress.

• It prohibits companies from hiring H1-B employees if they employ more than 50 people.
• It also disallows companies from hiring H1-B employees if more than 50% of their employees are H1-B and L-1 visa holders.
• The proposed legislation prohibits replacement of American workers by H1-B or L-1 visa holders.

• It will impose a special fees of $4,000 and $4,500 for H1B and L1 visas respectively in such a way that Indian IT companies will be the worst affected.
• The new fees will be applicable to companies that have at least 50 employees, and more than 50 per cent of them are on non-immigrant H1 B and L1 visas. It will mean Indian companies operating in the U.S – such as TCS and Wipro — will be affected by it, while American companies will have only a fraction of their employees on non-immigrant visas and would stay under the 50 per cent threshold.
• Part of the money raised through the special fees will fund health care of 9/11 first responders under the 9/11 Health and Compensation Act.
• Part of these fees will fund implementing a biometric entry and exit data system under the Department of Homeland Security.
• 

 L1 visas

• An L1 visa is used to transfer from working at a companies offices outside the USA – to the same companies offices in the USA.
• The L1 visa is a nonimmigrant visa, and is typically valid for up to 7 years. However employees in this category will initially be granted an L1 visa for up to three years.
• L1 visas are available to certain classes of employee of an international company with offices in both a home country and the United States, or which intend to open a new office in the United States while maintaining their home country interests.
• The visa allows such foreign workers to relocate to the corporation’s US office after having worked abroad for the company for at least one year prior to being granted L1 status. The US office must be a parent company, child company, or sister company to the foreign company.
• Spouses of L1 visa holders are allowed to work after obtaining work authorization, without restriction, in the US.
• The L1 visa is a ‘dual intent’ visa allowing the holder to apply for a Green Card

H1B Visa

• The H1B Visa is the primary US work visa / permit made available to people from all over the world.
• The US Government introduced the H1B visa program to offer and enable skilled International Professionals and International Students from all over the World the opportunity to live and work in the USA.
• The H1B is the most popular and sought after US work visa and US Immigration requires ‘every’ foreign national to obtain a visa in order to legally work in America.
• One of the main advantages of the H1B visa is that it is a ‘dual intent’ visa which means that you can apply for a Green Card (become a Legal Permanent Resident).
• An H1B visa is typically valid for up to six (6) years and entitles your spouse (husband/wife) and children (under 21) to accompany you and live in the USA on an H4 visa. The H4 dependent visa does not allow your spouse/children to work (unless they get their own H1B visa).

 Conclusion-

The US governments proposed draft to tighten H-1B norms have larger impact on Indian companies and workers operating from US. As most of the Indian companies employed Indian workforce tightening visa norms may face issues. Hence as short term measures Indian should deal with USA government and as long term measure Indian should create an eco-system to attract those Indians who employed in USA.