H-1B visa: US warns businesses against preferring migrant workers. Will Indians be affected?
The Trump administration is intensifying efforts to challenge what it calls illegal hiring preferences for foreign workers, particularly under the H-1B visa programme, which largely benefits Indian professionals. A federal agency, the Equal Employment Opportunity Commission (EEOC), has been tasked with investigating and addressing these concerns to prioritize American workers.
Crackdown on Hiring Preferences for Foreign Workers
On February 19, 2025, the EEOC warned businesses against prioritizing foreign workers over American candidates. Acting Chair Andrea Lucas stated that national origin discrimination in hiring is prevalent across multiple industries, as reported by Business Standard.
The agency has committed to taking strict action against employers, staffing agencies, and other entities found to be engaging in such practices.
H-1B Visa Programme Under Scrutiny
The H-1B visa allows US companies to hire foreign professionals in specialized fields such as technology, engineering, and medical sciences. However, critics argue that this visa displaces American workers, prompting both Trump and Biden administrations to introduce stricter regulations in recent years.
According to the EEOC, companies often favor foreign workers for several reasons:
- Lower labor costs, sometimes achieved through wage loopholes or illegal payments.
- Limited knowledge of labor rights, making foreign workers easier to exploit.
- Perception of a stronger work ethic among foreign workers.
- Client or customer preferences for international talent.
A notable case highlighting these concerns is the lawsuit against Meta Platforms, where the company is alleged to have systematically preferred visa holders over American candidates to cut costs.
Impact on Indian Professionals
Any tightening of H-1B regulations would have a significant impact on Indian workers, who are the largest beneficiaries of this visa. Between October 2022 and September 2023, Indian nationals received 72.3% of all H-1B visas issued, according to the report.
However, experts warn that overly restricting the programme could drive skilled talent to other countries.
Jidesh Kumar, Managing Partner at King Stubb & Kasiva, pointed out that the US economy heavily relies on H-1B workers to fill skill shortages in technology, engineering, and healthcare.
“Tightening the H-1B programme could push global talent towards other destinations like Canada or the UK, potentially undermining the US’s leadership in innovation and economic growth,” he noted.
The US government’s crackdown on H-1B hiring practices reflects a growing effort to prioritize American workers. However, experts caution that overly strict policies could lead to a brain drain, pushing skilled professionals to alternative destinations like Canada and the UK. The outcome of these policies will be closely watched, especially by Indian professionals, who make up the largest share of H-1B visa holders.
