H–1B and L–1 Visa Reform Act of 2025

Bill Number

S. 2928

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Immigration

Status

Introduced

Latest Action

2025-09-29: Read twice and referred to the Committee on the Judiciary.

Last Updated

2025-12-16T18:52:45Z

AI-Generated Summary

Purpose of the Legislation

The H-1B and L-1 Visa Reform Act of 2025 aims to reduce fraud and abuse in the H-1B (specialty occupation workers) and L-1 (intracompany transferees) nonimmigrant visa programs under the Immigration and Nationality Act. It strengthens protections for U.S. workers, ensures fair wages and working conditions for visa holders, improves enforcement mechanisms, and prioritizes high-skilled, high-wage positions while limiting misuse by employers.

Key Provisions

The Act is divided into two titles focusing on H-1B and L-1 visas, with amendments to the Immigration and Nationality Act.

Title I: H-1B Visa Fraud and Abuse Protections

• Employer Application Requirements (Subtitle A):
• Employers must offer wages at the highest of: the local prevailing wage, median wage for the occupation and area, or median wage for skill level 2 (from the Department of Labor's Occupational Employment Statistics survey).
• Jobs must be posted on a new Department of Labor (DOL) website for at least 30 days, detailing wages, requirements, and application process.
• No displacement of U.S. workers within 180 days before or after hiring an H-1B worker (excluding training periods); applies to all employers.
• Bans advertising jobs as H-1B-only or giving hiring preference to H-1B applicants.
• Large employers (50+ U.S. employees) limited to no more than 50% H-1B plus L-1 workers; requires submission of prior W-2 forms for H-1B employees.
• H-1B visas prioritized by: advanced U.S. STEM degrees, high wages (skill levels 3-4), other U.S. advanced degrees, Schedule A shortage occupations, compliant employers (e.g., E-Verify users with high approval rates and immigrant petitions for 90% of H-1B workers), then others.
• Specialty occupations require a bachelor's or higher degree directly related to the job (U.S. or equivalent foreign degree); eliminates prior flexible criteria.
• Introduces a processing fee deposited into a dedicated DOL account for oversight and enforcement; authorizes 200 additional DOL staff.
• DOL gains subpoena power for investigations; limits initial H-1B stay to 3 years (extendable to 6 with an approved immigrant petition); bans using B-1 business visas as substitutes for H-1B.

• Investigations and Complaints (Subtitle B):
• Extends complaint filing window to 2 years; requires annual audits of 1% of H-1B employers and all large employers with >15% H-1B workers; public summaries of audit findings.
• Increases penalties: $5,000-$150,000 per violation (up from $1,000-$35,000), plus 1-3 year bans on future petitions; willful violations up to $25,000 and 2-year bans.
• Adds liability for lost wages/benefits; prohibits retaliation against workers reporting violations, with 90-day grace period for status extension post-termination.
• Bans requiring H-1B workers to pay penalties for leaving early or denying them equal benefits (e.g., health insurance, bonuses) as U.S. workers.
• Waiver process for outsourcing H-1B workers, requiring no displacement and principal control by the petitioning employer; decisions within 7 days.
• Enhanced information sharing between U.S. Citizenship and Immigration Services (USCIS) and DOL.

• Other Protections (Subtitle C):
• DOL must create a free public website for job postings within 90 days.
• Employers must provide visa applicants with immigration documents upon request (redacting sensitive info); requires brochures on rights and obligations at visa issuance or approval.
• Mandates GAO report on wage/job classification accuracy; annual reports on H-1B characteristics (e.g., origins, wages, employer lists).

Title II: L-1 Visa Fraud and Abuse Protections

• Mirrors H-1B reforms with adaptations for intracompany transfers:
• Prohibits displacing U.S. workers within 180 days; limits outplacement to unaffiliated employers to 1 year without waiver (no displacement, principal control by petitioner, not labor-for-hire).
• For new offices: initial 12-month approval limited to workers without recent similar petitions; requires business plan, premises, and finances; extensions need proof of ongoing operations.
• Wage requirements for L-1 workers placed >1 year: same as H-1B (highest of prevailing, median, or skill level 2); equal benefits; bans early termination penalties.
• Investigations triggered by complaints or audits (1% annually, all large employers with >15% L-1); 24-month complaint window; penalties $5,000-$25,000, 1-2 year petition bans, lost wages liability.
• Anti-retaliation protections with 90-day grace period; defines "specialized knowledge" strictly (advanced, proprietary, not general or readily available skills).
• Cooperation between DHS and State Department to verify foreign offices; annual reports on L-1/H-1B characteristics, including gender, education, and blanket petitions.
• Rules for blanket L-1 petitions expedited by DHS; annual DOL survey on H-1B recruitment best practices.

• Application: Most changes apply to petitions filed after enactment.

Significant Changes to Existing Law

• Wage and Displacement Rules: Raises minimum wages to median or higher levels (previously prevailing wage only); extends non-displacement window from 90 to 180 days; applies to all employers (not just "dependent" ones).
• Caps and Priorities: Introduces 50% cap on H-1B/L-1 workers for large firms; new tiered H-1B allocation favoring U.S.-educated STEM talent and high-wage jobs over random lottery.
• Qualifications: Mandates actual degrees for H-1B specialty occupations (replacing equivalent experience options); tightens L-1 "specialized knowledge" to exclude general skills.
• Enforcement: Boosts penalties (5-10x increases), adds audits/subpoenas, extends timelines (e.g., 12 to 24 months for complaints); creates dedicated funding and staff.
• Transparency: New public website, mandatory document sharing, detailed annual reports (expanding prior requirements); eliminates B-1 visa workaround for H-1B work.
• Protections: Adds anti-retaliation remedies and grace periods; requires equal benefits and prohibits discriminatory ads/recruitment.

Potential Impacts

• Government Agencies: Increases workload for DOL (audits, investigations, website) and DHS/USCIS (prioritized reviews, waivers); funded by new fees, authorizing 200 DOL hires—could improve enforcement but strain resources initially.
• Citizens/U.S. Workers: Enhances job/wage protections by limiting displacement and prioritizing U.S. graduates/shortage occupations; may reduce wage suppression in tech/IT sectors but could slow hiring.
• Visa Holders: Provides stronger rights (e.g., against retaliation, equal benefits) and grace periods, but stricter qualifications/wages may limit access; better transparency via brochures/documents.
• Employers: Raises compliance costs (fees, postings, audits) and restricts outsourcing/new offices; favors ethical, high-wage firms but burdens staffing agencies/multinationals; potential for more denials/bans.
• International Relations: Could deter skilled migration from countries like India/China (major H-1B sources), affecting talent flows and bilateral ties; promotes U.S. education by prioritizing domestic degrees.

Main Stakeholders Affected

• U.S. Workers: Protected from job loss and undercutting wages, especially in high-tech fields.
• H-1B and L-1 Visa Holders: Gain enforcement of rights but face higher barriers to entry/extension.
• Employers: Tech giants, consultancies, and multinationals reliant on these visas; small firms/new offices face added scrutiny.
• Educational Institutions: Benefit from H-1B priority for U.S. STEM graduates, potentially increasing enrollment.
• Federal Agencies: DOL, DHS, and State Department handle expanded roles in oversight, adjudication, and reporting.
• Immigrant Advocacy Groups: Monitor for fair implementation; labor unions support worker protections.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens DOL/DHS enforcement tools (e.g., subpoenas, hearings under Administrative Procedure Act), enabling faster investigations and civil remedies for lost wages; expands whistleblower protections, potentially increasing litigation over retaliation or violations. Waivers and audits include limited judicial review to expedite processes.
• Constitutional: Aligns with Congress's plenary power over immigration; no apparent free speech or due process issues, as changes focus on regulatory compliance rather than restricting rights.
• Political: Bipartisan (sponsored by Sens. Grassley, Durbin, Sanders, etc.), balancing skilled immigration with labor protections amid debates on "America First" policies; may influence future reforms by addressing fraud concerns without capping total visas, but could face challenges from business lobbies over costs.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Grassley, Chuck [R-IA]

Cosponsors (4)

Sen. Durbin, Richard J. [D-IL], Sen. Sanders, Bernard [I-VT], Sen. Tuberville, Tommy [R-AL], Sen. Blumenthal, Richard [D-CT]

Recent Actions

• 2025-09-29: Read twice and referred to the Committee on the Judiciary.
• 2025-09-29: Introduced in Senate

Bill Versions

• H–1B and L–1 Visa Reform Act of 2025 — issued 2025-09-29 — PDF (61 pages)