We hope this newsletter finds you well. In this edition, we bring you important updates on various immigration matters. Please take a moment to review the following key highlights:
Senators Grassley and Durbin Introduce H-1B and L-1 Visa Reform Act of 2025
Senators Chuck Grassley (R-IA) and Dick Durbin (D-IL) have introduced the H-1B and L-1 Visa Reform Act of 2025, a sweeping proposal that would significantly reshape employment-based immigration programs.
The legislation seeks to impose stricter eligibility criteria, new wage requirements, and greater restrictions on third-party placement for H-1B and L-1 workers. It also aims to give the Departments of Labor (DOL) and Homeland Security (DHS) broad new enforcement powers, including the authority to conduct annual compliance audits and impose stiffer penalties for violations.
Key H-1B Provisions:
- Stricter degree requirements: Applicants must hold a U.S. bachelor’s or foreign equivalent degree in a specialty directly related to the job. Experience alone would no longer qualify.
- Shorter admission periods: Initial H-1B stay capped at three years, with extensions tied to green card sponsorship.
- Wage protections: Employers must pay the higher of the prevailing wage, median wage, or Level 2 wage for the role.
- Mandatory U.S. recruitment: All H-1B employers would be required to recruit U.S. workers before hiring H-1Bs and post openings on a DOL job site.
- Third-party placement restrictions: Outsourcing and offsite placements would be barred unless employers obtain a waiver from DOL.
- Cap allocation changes: Priority given to advanced STEM degree holders from U.S. institutions and higher-wage jobs.
Key L-1 Provisions:
- New wage standards: For the first time, L-1 employers would be required to pay prevailing or median wages.
- Narrower definition of specialized knowledge: L-1B eligibility limited to proprietary, unique knowledge not readily available in the labor market.
- Limits on offsite placements: Similar to H-1B, third-party assignments would be restricted without DOL approval.
- New office requirements: Employers must provide detailed business plans and proof of operational readiness for new U.S. branches.
Enforcement and Penalties:
- Expanded DOL/DHS authority: Agencies would be empowered to launch investigations without prior notice, subpoena records, and enforce compliance.
- Whistleblower protections: Stronger safeguards for employees reporting violations.
- Tougher penalties: Fines starting at $5,000 per violation, rising to $150,000 for willful fraud involving U.S. worker displacement.
- Annual audits: At least 1% of all H-1B and L-1 employers, and all large H-1B/L-1 employers, would face yearly compliance audits.
Broader Impact:
The bill also seeks to eliminate the use of B-1 visas in lieu of H-1Bs and requires DHS to submit an annual immigration report to Congress with detailed statistics on visa use and employer practices.
Though similar Grassley-Durbin proposals have been introduced before without passage, the 2025 bill could shape ongoing debates on immigration policy — especially as the Trump Administration pursues its own restrictions, including a $100,000 H-1B visa fee and Project Firewall, a new enforcement initiative.
Impact Analysis:
The H-1B and L-1 Visa Reform Act, introduced by Republican Senator Chuck Grassley and Democratic Senator Dick Durbin, proposes tougher wage and recruitment standards, prioritization of H-1B visas for workers with advanced STEM degrees, and steeper penalties for wage violations. Lawmakers say the bill is intended to “target visa fraud and abuse” and better protect American workers.
“Major companies are laying off thousands of American workers while filing thousands of visa petitions for foreign workers at depressed wages and poor working conditions. Congress must step in,” Senator Durbin said, vowing to push the bill into law.
The bill follows closely on the heels of President Donald Trump’s $100,000 H-1B visa fee hike, announced just weeks earlier. The administration has also unveiled new plans to rejig the H-1B lottery system to favor higher-paid workers and launched Operation Firewall, a Department of Labor crackdown on fraud and misuse of the program.
Impact on Indian Professionals:
Indians are expected to be disproportionately affected. More than 70% of H-1B approvals go to Indian nationals, particularly in IT and consulting fields. Major Indian companies like Infosys and Tata Consultancy Services are among the top 10 H-1B sponsors, while L-1 visas are widely used by Indian IT multinationals to transfer managers and executives to U.S. offices.
“This bill would increase compliance requirements and make H-1B hiring more expensive, especially for firms relying on lower wage levels or contract staffing,” said Nicole Gunara, Principal Immigration Attorney at Manifest Law. “For L-1 visas, the new rules will close loopholes by tightening restrictions on outplacement and requiring stricter oversight.”
However, Gunara also noted that most immigration bills stall in Congress: “Just 5% of more than 300 immigration bills proposed between 2015 and 2024 became law. This is still at an early stage.”
The Bigger Picture:
The H-1B program, created in 1990, allows U.S. companies to hire foreign workers in specialty occupations, usually for an initial three-year period, extendable to six years. It has become a crucial pathway for thousands of Indian professionals to work — and ultimately settle — in the United States.
With the $100,000 fee hike, tougher lottery rules, and the proposed bill, the landscape for Indian workers seeking opportunities in the U.S. could become significantly more challenging. Immigration experts warn that compliance costs and visa restrictions may push companies toward direct hiring models while reducing reliance on global staffing.
Federal Government Shutdown Begins; Key Immigration Programs Affected
The federal government has entered a partial shutdown after Congress failed to pass a Fiscal Year 2026 appropriations bill or a temporary stopgap measure by the September 30 deadline. Budget negotiations are ongoing, but the immediate impact is already being felt across several federal agencies.
Immigration Programs Affected:
- Department of Labor Functions Suspended: Processing of Labor Condition Applications (LCAs), prevailing wage determinations, and PERM labor certifications has halted until Congress enacts funding legislation. This suspension may delay H-1B, PERM-based green card, and other employment-based immigration cases that require DOL certifications.
USCIS and State Department:
- Services Continue: Most immigration benefits adjudicated by U.S. Citizenship and Immigration Services (USCIS), as well as visa and passport services at U.S. consulates and embassies, are expected to continue because they are funded by application fees. However, applicants should anticipate possible processing delays due to reduced staffing and interagency dependencies.
Programs Expired and On Hold:
- E-Verify – the electronic employment eligibility verification system – is suspended. Employers will not be able to initiate new E-Verify cases during the shutdown.
- EB-4 Religious Workers (Non-Minister Category) – this program has expired and will remain unavailable unless extended by Congress.
- Conrad 30 J-1 Waiver Program – allowing physicians to work in underserved areas – is also lapsed pending congressional reauthorization.
This shutdown underscores the vulnerability of employment-based immigration processes that depend on government funding cycles. While fee-based services remain insulated, critical DOL functions and special visa programs are at a standstill. Immigration attorneys and employers should prepare for case backlogs once operations resume.
Unless lawmakers reach an agreement soon, prolonged disruption could intensify delays for foreign workers, U.S. employers, and families navigating the immigration system.
H-1B Compliance: Understanding Your Legal Obligations and Avoiding DOL Investigations
The H-1B visa program allows U.S. employers to temporarily employ foreign workers in specialty occupations, but it comes with strict compliance requirements. The Department of Labor (DOL) actively investigates violations, and penalties can be severe. Understanding these obligations isn’t about finding loopholes—it’s about protecting your business and treating workers fairly.
The Critical Compliance Areas:
Labor Condition Application (LCA) Posting
- One of the most common violations involves failing to post the LCA at the actual worksite. If your H-1B employee works at a client location, the LCA must be posted there, not just at your office. This transparency requirement ensures other workers know about the employment terms and can report potential violations.
- Requirement: Post the LCA in two conspicuous locations at each worksite for the duration of employment, or provide electronic notification to all employees.
Prevailing Wage Compliance
- Employers must pay H-1B workers the higher of the actual wage (what you pay similarly situated workers) or the prevailing wage for that occupation in the geographic area. The wage has four levels based on experience, education, and job complexity.
- Common violation: Filing an H-1B petition with a Level 1 wage (entry-level) when the actual duties require Level 3 or 4 expertise. This misrepresentation to reduce labor costs constitutes fraud and can trigger back wage liability for the difference.
Proper Termination Procedures
When employment ends, whether voluntary or involuntary, employers have specific obligations:
- Notify the USCIS and Employee of the termination promptly in writing and send the mail via tracking number and keep proof of delivery in the file.
- Offer reasonable return transportation costs to the worker’s home country.
- Pay all wages owed through the last day of work.
- Maintain documentation of the termination and notifications.
Important: A “bona fide termination” (properly documented ending of employment) stops your wage obligation going forward, but it doesn’t erase back wages already owed for past violations.
What DOL Investigations Look Like:
DOL investigations can be triggered by:
- Employee complaints.
- Random audits.
- Referrals from USCIS or DOS.
- Industry-wide sweeps (particularly in IT consulting and staffing).
Investigators will examine:
- Payroll records and pay stubs.
- LCA documentation and posting evidence.
- Employee work locations and actual job duties.
- Comparison of LCA wage levels versus actual responsibilities.
The Real Cost of Non-Compliance (Violations carry serious consequences):
Financial penalties:
- Back wages plus interest to affected workers.
- Civil fines ranging from $1,000 to $35,000+ per violation.
- Attorney fees and audit costs.
Program consequences:
- Debarment from the H-1B program for 1-3 years, or permanently for willful violations.
- Increased scrutiny on all future visa petitions.
- Damage to business reputation.
- Criminal liability: Willful violations can result in criminal prosecution.
Building a Compliant H-1B Program:
Rather than seeking ways to minimize obligations, focus on building a sustainable compliance program:
1. Conduct regular internal audits
- Review all H-1B positions quarterly.
- Verify actual duties match petition descriptions and wage levels.
- Ensure LCAs are current and properly posted.
2. Implement strong documentation practices
- Maintain detailed job descriptions.
- Document actual work locations.
- Keep proof of LCA posting (photos, electronic records).
- Retain all payroll records for required period.
3. Train your management team
- Ensure supervisors understand H-1B requirements.
- Create protocols for notifying HR of worksite changes.
- Establish clear procedures for terminations.
4. Work with qualified legal counsel
- Consult immigration attorneys with DOL compliance experience
- Consider voluntary audits to identify and correct issues proactively
- Seek guidance before making significant program changes
H-1B compliance isn’t optional, and there are no legitimate shortcuts. The workers you sponsor depend on accurate wage payments and proper treatment. Your business depends on maintaining program eligibility and avoiding devastating penalties.
If you suspect your H-1B program has compliance gaps, act now. Proactive correction—even if it means paying back wages—is far less costly than fighting a DOL investigation. The goal isn’t to avoid obligations; it’s to meet them consistently and build a program that benefits both your business and the skilled workers who contribute to it.
White House Seeks Supreme Court Review on Birthright Citizenship Executive Order
The White House has formally asked the U.S. Supreme Court to review the constitutionality of its executive order seeking to limit birthright citizenship. The order, issued earlier this year, challenges the long-standing interpretation of the 14th Amendment that grants citizenship to nearly all individuals born on U.S. soil.
The administration argues that automatic citizenship should not apply to children of certain noncitizens, while opponents contend that the order violates constitutional guarantees. Lower courts have already blocked implementation, setting the stage for a high-stakes legal battle with potentially far-reaching implications for U.S. immigration and citizenship policy.
Sincerely,
Keshab Raj Seadie, Esq.
Law Offices of Keshab Raj Seadie, P.C. Disclaimer: This newsletter is intended for informational purposes only and does not constitute legal advice. Always consult an attorney for personalized advice.
