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The US government is tightening its grip on H-1B visa practices, with the EEOC cracking down on alleged hiring discrimination against American workers. This move could significantly impact international professionals, particularly those from India.
The U.S. has tightened scrutiny on H-1B visa hiring, warning businesses against favoring foreign workers over Americans. This move could significantly impact foreign professionals, including those from India, who make up the largest share of H-1B visa holders.
With Indian professionals being the largest beneficiaries, stricter policies could reshape global talent flow, pushing skilled workers toward destinations like Canada and the UK. Here’s what it means for foreign professionals.
Crackdown on Hiring Preferences for Foreign Workers
A federal agency, the Equal Employment Opportunity Commission (EEOC), has been tasked with investigating alleged hiring discrimination that prioritizes foreign workers over U.S. citizens.
On February 19, 2025, the EEOC issued a warning to businesses against such hiring preferences. Acting Chair Andrea Lucas highlighted that national origin discrimination is widespread across various industries, as reported by Business Standard.
Why Employers Prefer H-1B Visa Holders
The EEOC outlined several reasons why companies might favor foreign workers over American candidates:
1. Lower Labor Costs
Some businesses hire foreign workers to reduce expenses by exploiting wage loopholes or engaging in illegal underpayment practices, allowing them to bypass standard salary expectations for American employees.
2. Limited Knowledge of Labour Rights
Foreign workers, unfamiliar with U.S. labour laws, may be more susceptible to exploitation, as they might not fully understand their rights regarding wages, benefits, and workplace protections.
3. Stronger Work Ethic Perception
Employers often assume that foreign workers demonstrate greater dedication, reliability, and productivity, making them preferable hires compared to domestic candidates, despite potential ethical and legal concerns.
4. Client or Customer Preferences
Some companies prioritize hiring foreign workers based on client demands, believing that international talent aligns better with customer expectations, cultural preferences, or specific industry needs.
A prominent example is the lawsuit against Meta Platforms, which alleges that the company systematically favored visa holders over American workers to cut costs.
Increased Scrutiny and Regulatory Changes
Both the Trump and Biden administrations have tightened regulations surrounding the H-1B visa program. Measures include:
• Stronger Employer Scrutiny: Ensuring compliance with fair hiring practices.
• Adjusting Wage Requirements: Increasing minimum wages for H-1B workers to prevent undercutting American salaries.
These changes could have far-reaching consequences for Indian professionals, who accounted for 72.3% of all H-1B visas issued between October 2022 and September 2023.
Could Stricter Policies Drive Foreign Talent Elsewhere?
Experts warn that excessive restrictions on H-1B visas could drive global talent toward alternative destinations. The U.S. relies on H-1B visas to address skill shortages in technology, engineering, and healthcare.
Stricter policies may push skilled professionals to countries like Canada or the United Kingdom, potentially impacting U.S. innovation and economic growth.
Conclusion
The ongoing debate over H-1B visas remains critical for both American workers and skilled foreign professionals. While regulatory tightening aims to protect domestic employment, it may also lead to unintended consequences, such as talent migration to other nations.
Foreign professionals seeking global opportunities should stay informed about policy shifts to explore alternative pathways if necessary.
Source: https://travelobiz.com/h1b-visa-crackdown-us-targets-hiring-practices-for-foreign-workers/
