On September 29, 2025, Senators Chuck Grassley (R-Iowa) and Dick Durbin (D-Illinois) reintroduced a bipartisan bill aimed at reforming the H-1B and L-1 visa programs.
The proposal—known as the H-1B and L-1 Visa Reform Act—seeks to raise wage requirements, tighten compliance rules, and restrict third-party placement of foreign workers.
If enacted, it would mark one of the most sweeping changes to U.S. employment-based immigration in years.
Key H-1B Provisions
1. Reduced Maximum Stay
The bill would shorten the maximum stay for H-1B visa holders from six years to three years.
To extend status beyond three years, a worker would need an approved I-140 immigrant petition within that period.
Given current backlogs, this could push employers to start green card sponsorship much earlier.
2. No Entry-Level Sponsorship
Employers could no longer sponsor Level I prevailing wage positions.
All H-1B roles would need to pay at least Level II wages, closing off sponsorship for many entry-level graduates in STEM and other industries.
3. Narrower Definition of “Specialty Occupation”
The proposal would remove the option to qualify for H-1B status through a combination of education and experience.
Only candidates holding a full bachelor’s or higher degree directly related to the offered position would qualify.
4. Stricter Labor Condition Application (LCA) Rules
Before filing an H-1B petition, employers would need to:
- Post job openings publicly on a new DOL-managed website.
- Pay a “reasonable fee” supporting enforcement activities.
- Certify that no qualified U.S. worker was displaced.
Additionally, cap-exempt positions at nonprofit or research institutions would lose automatic exemption status.
5. Wage-Based Lottery Preference
The annual H-1B selection process would prioritize:
- Advanced U.S. STEM degree holders,
- Higher wage levels, and
- Employers with strong compliance histories.
Key L-1 Provisions
1. Redefined “Specialized Knowledge”
The term would be limited to employees whose knowledge is critical to business operations and formally protected (for example, patented or proprietary information).
2. Mandatory Wage Floor
L-1 workers in the U.S. for at least one year would have to be paid at least Level II prevailing wages, aligning with H-1B standards.
3. Stricter Oversight and Site Visits
Both the Department of Labor (DOL) and USCIS would gain broader powers to audit, investigate, and sanction employers—extending look-back periods for violations and increasing fines to as high as $150,000 per violation.
4. Restrictions on Third-Party Placements
Employers could place workers at third-party worksites only after receiving a waiver from DOL and proving that U.S. workers were not displaced before or after the placement period.
Implications for Employers
If enacted, this bill would:
- Drive up wage costs for employers relying on H-1B and L-1 professionals.
- Complicate staffing models dependent on consulting or outsourcing arrangements.
- Push employers to initiate green card sponsorships earlier.
- Limit entry-level recruitment, particularly in technology and engineering.
Smaller companies could face the greatest difficulty meeting new wage and documentation thresholds.
NPZ Guidance
At NPZ Law Group, we monitor legislative developments closely and help employers adapt to shifting immigration policy.
This proposed legislation—combined with recent executive actions on H-1B fees and weighted lottery rules—signals a more restrictive environment for U.S. business immigration.
Employers should:
- Review salary structures for foreign workers;
- Evaluate timelines for PERM and I-140 filings; and
- Seek legal guidance before placing H-1B or L-1 employees at client sites.
For strategic planning and compliance support, contact the NPZ immigration team.
Frequently Asked Questions (FAQ)
1. Has this bill become law?
No. It was reintroduced in the Senate and must still pass both chambers and be signed by the President before taking effect.
2. Does it change the current H-1B lottery?
Not yet. The bill mirrors recently proposed wage-based lottery regulations, but until enacted, the current system remains in place.
3. What happens to existing H-1B or L-1 holders?
If passed, new rules may apply prospectively. Current visa holders could be affected upon renewal or extension.
4. Who will feel the biggest impact?
Startups, small tech companies, consulting firms, and nonprofits relying on foreign talent could face higher costs and administrative burdens.
5. What should employers do now?
Stay informed, review workforce strategies, and consult counsel to prepare for potential compliance changes.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.