US warns firms on H-1B visa bias: No favouritism for migrant workers

Critics say the H-1B visa programme allows foreign professionals to take jobs that could go to US workers

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The Trump administration is ramping up efforts to challenge what it calls illegal hiring preferences for foreign workers, with officials arguing this is key to tackling immigration issues and safeguarding American jobs. The focus is on the H-1B visa programme, which critics claim enables foreign professionals to take positions that could go to US workers.

 

US crackdown on 'unlawful bias against American workers'

 

The Equal Employment Opportunity Commission (EEOC), the federal agency tasked with investigating employment discrimination, on February 19, 2025 warned businesses against prioritising foreign workers over American candidates. Acting chair Andrea Lucas said on February 19 that national origin discrimination in hiring is widespread across multiple industries.

 

“Unlawful bias against American workers, in violation of Title VII, is a large-scale problem in multiple industries nationwide,” said Lucas. “Many employers have policies and practices preferring illegal aliens, migrant workers, and visa holders or other legal immigrants over American workers—in direct violation of federal employment law. Cracking down on this type of unlawful discrimination will shift employer incentives, decreasing demand for illegal alien workers and decreasing abuse of the United States’ legal immigration system.”

 

Lucas added, “The EEOC is putting employers and other covered entities on notice: if you are part of the pipeline contributing to our immigration crisis or abusing our legal immigration system via illegal preferences against American workers, you must stop. The law applies to you, and you are not above the law. The EEOC is here to protect all workers from unlawful national origin discrimination, including American workers.”

 

The agency has pledged to step up enforcement against employers, staffing agencies, and other entities found to be in violation.

 

The H-1B visa allows US companies to hire foreign professionals in fields requiring a degree, such as technology, engineering, and medical sciences. While designed to address skill shortages, the programme has been criticised for allegedly displacing American workers.

 

The EEOC outlined reasons why companies may favour foreign workers, including:

 

< Lower labour costs, sometimes through wage loopholes or illegal payments

< A belief that foreign workers are easier to exploit due to limited knowledge of labour rights

< Customer or client preferences

< Perceptions that foreign workers have a stronger work ethic

 

However, the American Immigration Council disputes claims that the H-1B programme harms American workers. According to its research, H-1B workers are paid well above national averages. In 2021, their median salary was $108,000, compared to $45,760 for all US workers. Between 2003 and 2021, the median wage for H-1B workers grew by 52 per cent, compared to a 39 per cent increase for the general workforce.

 

Legal challenges

 

The issue has been brought into focus by a lawsuit against Meta Platforms, which alleges the company systematically preferred visa holders over American candidates to cut costs. A federal judge recently ruled the case can proceed, reflecting broader scrutiny of the tech sector’s reliance on foreign workers.

 

In the past, both the Trump and Biden administrations have introduced measures to tighten regulations around the H-1B system, such as increasing scrutiny of employers and adjusting wage requirements. Despite these changes, demand for H-1B visas remains high, with annual quotas being reached quickly.

 

Impact on Indian workers

 

Indian nationals are the largest beneficiaries of the H-1B programme, receiving 72.3 per cent of all visas issued between October 2022 and September 2023, according to US Citizenship and Immigration Services (USCIS). Any changes to the programme could have major consequences for Indian professionals seeking opportunities in the US.

 

During the Budget session last month, Minister of State for External Affairs Kirti Vardhan Singh addressed concerns over potential restrictions, saying, “mobility of skilled Indian professionals has contributed to the mutual benefit of India and the United States, especially in the technology and innovation sectors.”

 

“The government is closely engaged with the US administration and other stakeholders on all matters related to the H-1B visa programme through relevant bilateral discussions,” he said.

 

“The US economy relies on H-1B visas to address skilled labour shortages, particularly in technology, engineering, and healthcare, where domestic supply is insufficient,” said Jidesh Kumar, managing partner at King Stubb & Kasiva. “Tech giants and startups alike depend on H-1B professionals for cutting-edge research and product development. Many also go on to become entrepreneurs, creating jobs and boosting the economy.”

 

He warned that tightening the programme could push global talent towards other destinations. “Restricting the programme could force top global talent to seek opportunities in countries like Canada or the UK, potentially undermining the US’s position as a leader in innovation and economic growth,” he said.