Mithras Law Group Immigration Blog

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US Senate Bill Targets Indian IT Outsourcing Firms to Pay for Additional Security Measures on the US-Mexico Border

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The US Senate unanimously passed a bill sponsored by New York Senator Chuck Schumer to increase H-1B and L-1 visa fees on companies that send workers to the U.S. if more than half of their America-based employees use work visas. This bill is expected to mostly impact Indian IT outsourcing companies. It is noticeable that one of the largest Indian IT company, Infosys was referred to as a “chop shop” last week by Senator Schumer: “The emergency border funds will be paid for by assessing fees on foreign companies known as chop shops that outsource good, high-paying American technology jobs to lower wage, temporary immigrant workers from other countries. These are companies such as Infosys.”

American companies like Microsoft and Google that bring people to the U.S. on these work visas, too, don’t have to worry since those employees are just a tiny percentage of their U.S. workforce. The extra money will pay for additional security measures on the U.S.-Mexico border.

If the bill does turn into a law, it would approximately double the total cost for each visa by adding an additional fee of $2,000-$2,500 per visa as filing and fraud prevention and detection fees on top of the current cost of about $2,000 to get an H-1B/L-1 visa. This is estimated to put the additional cost to Indian companies at $200 million to $250 million.

However, it is important to note that the H-1B visa usage in 2010 has declined significantly due to the weak US economy. This might result in lower revenues to the US government through the new bill than expected.

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Written by MithrasLaw

August 9, 2010 at 3:48 pm

One Response

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  1. […] This bill is expected to mostly impact Indian IT outsourcing companies. It is noticeable that one of the largest Indian IT company, Infosys was referred to as a “chop shop” last week by Senator Schumer: “The emergency border funds will … View full post on outsourcing companies – Google Blog Search […]


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