A new bi-partisan proposal by Senators Dick Durbin and Charles Grassley would change "many of the rules companies must follow to obtain temporary work visas, known as H-1Bs and L-1s. The most controversial new rule would bar companies with more than 50 U.S. employees from getting any additional work visas if more than 50 percent of their U.S. workforce is made up of H-1B or L-1 visa holders," reports Business Week.

H-1Bs, in particular have long been a compliance challenge. The program was, of course, popular with firms in need of high-knowledge, IT-savvy employees, but by one estimate up to 13 percent of applications were fraudulent. The "50/50 provision" seems aimed squarely at offshore outsourcers. It would jeopardize a lot of on-shore work by these firms. It will be interesting to see how H-1B-heavy companies respond. This is a huge issue in India, and might just spark a trade war.  

For more:
- here's the Business Week article

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