H-1B and L-1 Visa Reform

Summary#

This bill, the H-1B and L-1 Visa Reform Act of 2025, changes rules for two temporary worker programs. It adds new employer application requirements, wage rules, and posting rules. Employers must show wages based on the highest of locally prevailing wages, a local median, or a specified median skill-level wage. Employers must post detailed job descriptions online for at least 30 days and may not advertise jobs as only for H-1B or give H-1B applicants hiring priority. The bill tightens nondisplacement rules, limits outsourcing or placement of H-1B/L-1 workers unless a waiver is granted, and limits the share of H-1B/L-1 employees at larger firms.

It gives the Department of Labor (DOL) more review and enforcement power: longer time windows for complaints, authority to subpoena, required audits of employers (including annual audits for certain employers), and higher civil penalties for violations. The bill creates a regulated fee for labor condition applications, deposits fees into a new Treasury account to fund administration and enforcement, and authorizes DOL to hire up to 200 additional staff. It also requires posting a public DOL job listing website, provides applicants with informational materials when visas are issued, and orders a GAO report on wage and job classification systems.

For H-1B allocation, the bill sets a new selection order that prioritizes applicants with advanced U.S. STEM degrees, higher wage offers, and employers with a record of compliance. It narrows the definition of "specialty occupation" to require an actual relevant degree or equivalent and shortens maximum initial H-1B admission periods (generally three years). For L-1 intracompany transfers, the bill limits outplacement at third-party worksites to one year unless a waiver is granted, strengthens documentation and new-office requirements, clarifies "specialized knowledge," and creates parallel investigation, audit, and penalty rules for L-1 employers. The bill also adds whistleblower and anti-retaliation protections allowing certain nonimmigrants to remain authorized for a limited period after termination tied to cooperating with investigations.

What it means for you#

• Employers that hire H-1B or L-1 workers will face more documentation, public job postings, wage attestations, possible audits, higher fines for violations, and limits on placing workers at third-party worksites. Some employers must submit W-2 records and may be limited if H-1B/L-1 staff exceed set shares of their workforce.
• Workers and visa applicants will receive informational materials and copies of petitions submitted on their behalf. The bill provides protections against employer retaliation and can authorize extended lawful stay for some workers who cooperate with investigations.
• Federal agencies (DOL, DHS, DOS, USCIS) get new authorities to audit, subpoena, collect fees, report statistics, and coordinate on verification and enforcement.

Expenses#

• The bill requires the Secretary of Labor to set a processing fee for labor condition applications and directs those fees into a new Treasury account named the "H-1B Administration, Oversight, Investigation, and Enforcement Account." The bill states those funds will be used to reimburse DOL salaries and related expenses for administration, oversight, investigation, and enforcement.
• The bill authorizes DOL to hire up to 200 additional employees to carry out these duties.
• No publicly available information on specific fee amounts or total fiscal cost is provided in the bill text.

Proponents' View#

The bill text states its purpose is "to reform and reduce fraud and abuse" in the H-1B and L-1 programs. To do that, it increases employer documentation and transparency, raises enforcement tools (audits, subpoenas, penalties), prioritizes certain visa applicants (U.S. advanced STEM degree holders and higher wage offers), and adds worker protections and public reporting.

Opponents' View#

No publicly available information.