U.S. companies that break H-1B visa rules could soon face fines as high as $250,000 and bans from federal immigration programs lasting up to a decade under a new bill in Congress.
The H-1B Visa Fraud Crackdown Act, introduced Oct. 1 by Republican Rep. Beth Van Duyne of Texas, would significantly increase penalties for employers that intentionally violate H-1B rules. The proposal would also allow the government to bar certain companies from participating in immigration programs for as long as 10 years.
The bill comes as lawmakers continue to debate how the H-1B program is used by U.S. companies to hire foreign workers for specialized jobs.
One of the biggest changes proposed by the bill would affect employers accused of deliberately trying to replace or displace American workers through the H-1B program. If such a violation is established, the maximum fine would increase from the current $35,000 to as much as $250,000. That would mark a significant jump in the financial penalty companies could face for serious violations involving U.S. workers.
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The bill would also increase the minimum period that an employer could be barred from participating in immigration programs from three years to 10 years.
For other willful H-1B violations, the maximum fine would rise from $5,000 to $100,000. The minimum ban for employers responsible for those violations would increase from two years to five years.
The proposed legislation would also raise penalties for certain document-related violations. Fines currently ranging from $250 to $2,000 would increase to between $1,000 and $10,000. Another category of violations, which currently carries fines of $2,000 to $5,000, would increase to between $20,000 and $50,000.
Van Duyne has argued that current penalties do not do enough to discourage employers from abusing the H-1B program.
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In a statement to Newsweek, she said the program had been “grossly abused” and argued that companies that deliberately violate H-1B rules should face significant financial consequences.
The bill has five other Republican co-sponsors, all from Texas: Reps. Brandon Gill, Pete Sessions, Keith Self, Brian Babin and Pat Fallon.
The H-1B visa is widely used by foreign professionals, including thousands of Indian workers, to take specialized jobs at U.S. companies. The proposed penalties would target employers accused of violating the program’s rules, not workers simply because they hold H-1B visas.
The legislation is still at an early stage. It has been referred to the House Judiciary Committee and has not yet become law.
For the proposed changes to take effect, the bill would need to pass the House and Senate before being signed by the president.