H-1B visa: US warns businesses against preferring migrant workers

In a move that could significantly impact foreign professionals, especially Indian workers, the Trump administration has intensified its scrutiny of what it deems illegal hiring preferences for foreign employees under the H-1B visa programme. With Indians being the largest beneficiaries of this visa category, the latest crackdown could reshape employment opportunities for skilled workers in the U.S.

H-1B: EEOC’s Role in Investigating Hiring Bias

The Equal Employment Opportunity Commission (EEOC), a federal agency responsible for enforcing anti-discrimination laws, has been tasked with investigating hiring practices that allegedly favour foreign workers over American candidates. On February 19, 2025, the EEOC issued a stern warning to businesses, urging them to prioritize U.S. citizens in recruitment.

Andrea Lucas, the acting chair of the EEOC, emphasized that national origin discrimination remains prevalent across various industries. The agency has pledged to take action against companies, staffing agencies, and any other entities found violating hiring regulations.

H-1B Visa Programme Under Fire

The H-1B visa programme, which allows U.S. companies to employ foreign professionals in specialized fields such as technology, engineering, and healthcare, has long been a point of contention. Critics argue that it displaces American workers, while proponents highlight its role in filling crucial skill gaps within the U.S. economy.

A recent Business Standard report outlined several reasons why employers may prefer foreign workers, including:

• Lower labour costs through wage loopholes or illegal payments.
• A belief that foreign workers are less likely to challenge unfair labour conditions.
• Perceived stronger work ethic among foreign employees.
• Customer or client preferences for international talent.

One high-profile example is a lawsuit against Meta Platforms, which alleges that the company systematically prioritizes visa holders over American candidates to reduce labour expenses.

Bipartisan Efforts to Reform H-1B Visa Policies

Both the Trump and Biden administrations have introduced measures aimed at tightening H-1B visa regulations. These include:

• Increased scrutiny of employer practices.
• Adjustments in wage requirements to ensure fair compensation.
• Measures to prevent companies from exploiting loopholes that disadvantage American workers.

The Potential Impact on Indian Professionals

With Indian nationals receiving 72.3% of all H-1B visas between October 2022 and September 2023, any major changes to the programme could disproportionately affect them. Jidesh Kumar, managing partner at King Stubb & Kasiva, noted that the U.S. economy heavily relies on H-1B visa holders, particularly in industries facing domestic talent shortages.

He warned that excessive tightening of the visa programme could drive global talent towards alternative destinations like Canada and the UK, potentially diminishing the U.S.’s competitive edge in innovation and economic growth.

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