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Rep. John
L. Mica (FL-7th) recently introduced legislation aimed at
closing the so-called L-1 loophole in the immigration law
that could stem the flow of technology workers from countries
like India.
Currently, companies can transfer employees
from subsidiaries in foreign countries to the United States
through
the L-1
visa program, as long as the intra-company transferees have
been employed with the company for at least six months. Once
in the country, those employees can then be outsourced to
other U.S. firms at significantly lower wages and as replacements
for American workers, according to Mica.
“Many Americans have found themselves
in the unemployment line because some companies have abused
our immigration laws,” Mica
said. “Unfortunately the L-1 visa program, while well-intentioned,
has been used as a back door to cheap labor.”
The Mica
bill, H.R. 2154, prohibits the outsourcing of L-1 visa holders,
similar to a provision contained in the H-1B
visa program. Under this measure, American companies will
still be permitted to employ L-1 visa holders. However, those
employees can only be transferred from company subsidiaries,
not from a third party.
“While we want to help our businesses
meet their workforce needs, this proposal will help ensure
that Americans are
no longer victimized through a legal loophole,” says
Mica.
There are currently over 325,000 L-1 visa
holders in the United States. The Mica bill is expected to
be referred
to
the Judiciary Subcommittee on Immigration and Claims.
However, not everyone expects the bill to pass.
“The bill has only been introduced, but I doubt whether it
will become a law at all as it has to pass through a number
of stages before getting a final clearance,” Congressman
Jay Inslee recently told reporters at a summit organized
by the Confederation of Indian Industry (CII).
“We cannot engage in protectionism in the US and at the same
time expect to sell Microsoft and Boeing products in India.
I don’t believe the US should have a visa policy that
slows down economic growth,” Inslee said. “The
September 11 incidents had prompted the US government to
exercise caution in granting visas. However, no major legislative
changes have been recommended. The stringent measures, in-cluding
new visa interviews for L-1 visas, are to ascertain the legitimacy
of employment relations with the employee and the employer,” he
added.
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