Senators Bernie Sanders (Vermont) and Charles Grassley (Iowa) have introduced legislation that would bar any company that lays off 50 or more employees from hiring foreign workers. The two lawmakers have already added H1B hiring restrictions to the financial bailout bill earlier this year, Computerworld reports. The new proposed legislation, called Employ America Act, can potentially affect a broad range of tech firms that continue hiring after laying off large numbers of employees. It will also apply to companies that hire H2B visa workers. H2B visas are mostly used in construction, health care, food service, and other industries.
“With the unemployment rate over 10%, companies that undertake mass layoffs shouldn’t need to hire foreign guest workers when there are plenty of qualified Americans looking for jobs,” said Grassley. According to the two senators, the high-tech industry alone has laid off more than 340,000 workers since August 2008.
In February, the senators proposed to prohibit the financial services firms that received money from the government TARP program from hiring H1B holders. That restriction wasn’t adopted, however Congress agreed to make any company receiving TARP funds “H1B dependent” regardless of the number of visa holders on the payroll. Generally a company is considered “H1B dependent” when more than 15 percent of their employees are on H1B visas. Such companies must make good faith effort to hire U.S. workers before they can use foreign labor.
Earlier this year Grassley, along with another U.S. Senator Dick Durbin (Illinois), introduced the H1B and L-1 Visa Reform Act of 2009 that is supposed to set a number of restrictions on H1B use, including the provision aimed at Indian outsourcing firms to prohibit any company with more than 50 employees from having more than half of their workforce on H1B or L-1 visas. The legislation also has some anti-fraud provisions and sets higher salary levels for visa holders.
On the other hand, U.S. Representative Jeff Flake (Arizona) has proposed legislation to increase the H1B cap and exempt foreign graduates of U.S. Ph.D. programs from counting toward it.
However, the prospects for any immigration-related legislation are uncertain and unlikely to pass as the Senate is expected to receive an immigration reform bill next year.
ABSOLUTELY ALMOST A GREAT IDEA!!!!!!!!
Except that I think that if a company lays off even one American without a corresponding immigrant layoff, the rule should apply.
I further feel that no illegal immigrant should ever be hired and any company that does so should not ever be allowed to hire immigrants in the future. Frankly, I do not care if this puts them out of business.
I feel that NO immigrants should ever be offered a job unless there is absolutely no American born person that is able (and willing) to fill that position.
Red, white, and blue all over, having been beaten down by the economy in general, rising prices, lowered quality, and Obammitus.
I do not agree. Do American’s willing to work for less salary in this downturn market? NO. Thats why the companies struggling to stay in business wants to hire H1B workers so they can pay less and try to survive.
I think we need to have a balance. Remember, protectionism is slow poison and it will only bring down the great country in the long run.
All the great companies like Google are founded by foreign nationals
Wow!!! I was very reluctant to post this comment because I am afraid to appear to agree with Lew Peterman. I do believe that an effort should be made to hire employees who legally live within the borders of the United States. Here are some facts that you may not know. Most businesses are started by immigrants, please read the following blog. http://blogs.zdnet.com/ITFacts/?p=12064 Do your own research. You will find how much immigrants have contributed to this country. Even the atom bomb was created by a German born immigrant. When the economy is down, it is very easy and convenient to blame it on the immigrants. This has always been the case. Read your history. Even Hitler came into power by feeding on the anti-Semitism that existed against the Jews during Germany’s recession at the time. So come’ on people lets evolve somewhat and not repeat the errors of the past. Also remember that unless you are 100% Native American Indian, you are an immigrant.
H1B workers are not always lower wage employees in fact in many cases the H1B workers are employed by outsourcing companies and placed in larger corporations that have laid off hundreds or thousands of employees in software or engineering positions. This leaves many US employees without jobs while the H1B workers are making very good wages in these positions. I know that these are jobs that many unemployed US workers would glady want to have.
Twice in two years someone from another country was brought in to take over my job, just because I was an employee of the company. These foreign IT workers are not making low wages, but because they are not on the company’s payroll (but on the outsourcing company’s payroll) the company is supposedly saving money. American’s have to settle for working for less money because there are so many of us competing for the same jobs, and employers are taking advantage of this. We have no choice. Maybe I would have better luck working in the U.S. if I came from another country.
[...] competition, hiring new employees, outsourcing jobs to other countries, layoffs, budget cuts, immigration reform, working for an idiot boss, what gift to get a co-worker for holidays, etc.Some amount of stress is [...]
@Noway: “Do American’s willing to work for less salary in this downturn market? NO.”
Exactly where did this gem of information come from? I’d work for much less than I made before I was squeezed out of my last job, but downgrading is IMPOSSIBLE. Hiring managers only seem to believe that when another job comes along that person will leave. I had to look outside of my state and now have to live 8 hours away from home and family because of that bizarre idea. Do I deserve to be protected by employment law? 45 years of paying taxes says probably yes.
…and all great companies are founded by foreign nationals? Baloney.
I was laid off when consultants were kept on, many of which were on H1B visas. 2 months later my job was shipped to Ireland because my replacements (yes, it took two other employees to take over my work load) wouldn’t work the six hour time difference.
If a company employes H1B visas, they should be taxed $100,000 for each one ANNUALLY regardless of their pay. For each outsourced job, the same - a tax or $100,000 for each one ANNUALLY.
If our politicians do that you will see millions of jobs coming back real fast.
Think about it, how many senior level management jobs, “C” level jobs, executive jobs, or board rooms jobs are outsourced? But these are the very people that make the decision to hire H1B visas and outsource jobs.
High skilled US technical workers are displaced by H1-B visa workers that is a fact that has been building since 1999 and grew out of control under the corporate welfare policies 2000-present. Increased H1-b visa workers have caused many US students to avoid entering IT programs at universities. There is no incentive to enter an IT course of study if you can’t find a job in your field upon graduation; moreover, if you are lucky to find a job, your job is perpetually at risk by corrupt H1-b visa scams.
Many of these H1-b visa scams have finally been prosecuted in the past year. The problem isn’t the evil Indian worker; they are just average people looking for work and they too are victims of indentured servitude by corrupt placement firms and greedy corporations who don’t want to pay the majority of these workers the prevailing wage. However, my Indian brothers and sisters, we simply can’t give you jobs in our country when we don’t have jobs to give. The other problem with the H1-b visa scams is that it impedes entrance into the IT industry for former US manufacturing workers who were displaced by outsourcing of our manufacturing base to China. Many of these workers are just as intelligent as any of us and these US workers could quickly be trained in IT skill sets. However what is the point of pouring tax dollars into retraining these former US manufacturing workers for IT careers if they can’t find jobs because of H1-b visa workers?
As Americans, we need to put pressure on our elected officials to suspend the H1-b visa program and give US workers the opportunity to fill these jobs as opposed to continuing the decade long corporate welfare pig out that has bankrupted our nation’s main streets and displaced many fine US technical workers.