E-Paper
H-1B visa: US warns businesses against preferring migrant workers. Will Indians be impacted?
A federal agency called the Equal Employment Opportunity Commission (EEOC) was tasked with investigating the matter and safeguarding jobs for US workers.
The Trump administration is looking to challenge what it calls illegal hiring preferences for foreign workers, especially when it comes to the H-1B visa programme, of which Indians are the largest beneficiaries.
As a result, a federal agency called the Equal Employment Opportunity Commission (EEOC) was tasked with investigating the matter and safeguarding jobs for US workers.
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The committee warned businesses on February 19, 2025, against prioritising foreign workers over American candidates. Its acting chair, Andrea Lucas, said that national origin discrimination in hiring is widespread across multiple industries, according to a Business Standard report.
The agency has pledged to crack down on employers, staffing agencies, and other entities found to be doing this.
The H-1B visa, in particular, has come under scrutiny as it allows US companies to hire foreign professionals for fields that require a degree, such as technology, engineering, and medical sciences.
Critics of the visa have alleged that it is displacing American workers.
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According to the report, the EEOC then listed the reasons why companies may favour foreign workers. They are as follows:
Lower labour costs, which are sometimes achieved through wage loopholes or illegal payments.
A belief that foreign workers are easier to exploit due to them having limited knowledge of labour rights.
Perception that foreign workers have a stronger work ethic.
Customer or client preferences.
A specific example would be a lawsuit against Meta Platforms, which alleges that the company systematically preferred visa holders over American candidates to cut costs.
Both the Trump and Biden administrations have introduced measures to tighten regulations around the H-1B system, by increasing the scrutiny of employers as well as by adjusting wage requirements.
Any changes to the visa programme would have major consequences for a large number of Indian professionals. Between October 2022 and September 2023, Indian nationals received 72.3 per cent of all visas issued, according to the report.
However, the report quoted Jidesh Kumar, managing partner at King Stubb & Kasiva, as saying that the US economy relies on H-1B visas to address skilled labour shortages, particularly in technology, engineering, and healthcare, where domestic supply is insufficient.
He added that tightening the programme could push global talent towards other destinations "like Canada or the UK, potentially undermining the US’s position as a leader in innovation and economic growth.”
Thus, Indian talent may be forced to look at other countries if the US overly tightens its H-1B visa regulations.
