Immigration & Careers | October 21, 2026

Status: Proposed legislation — not enacted

A bipartisan proposal in the U.S. Senate could significantly change how employers hire H-1B workers, transfer L-1 employees, determine salaries, and sponsor certain foreign professionals.

The H-1B and L-1 Visa Reform Act of 2025 (S. 2928) was introduced on September 29, 2025, by Senator Chuck Grassley, with Senator Dick Durbin and other lawmakers supporting the legislation.

The bill seeks to address alleged misuse of employment-based visa programs while strengthening protections for both American and foreign workers.

For Indian professionals working in technology, consulting, financial services, healthcare, and other industries, several provisions deserve attention. However, these changes are proposals, not rules currently in effect because of this bill.

What would change under S. 2928?

1. Higher wage requirements for H-1B employees

The bill proposes that employers pay H-1B employees at least the highest of three benchmarks: the locally determined prevailing wage, the occupational median wage in the area, or the median wage at skill level 2 under the applicable federal occupational wage data.

This could raise the minimum required salary for certain H-1B positions, depending on the occupation and location.

Importantly, the bill does not establish one universal H-1B minimum salary, such as $100,000 or $150,000. Its proposal is based on occupational wage benchmarks.

2. Significant restrictions on employers relying heavily on H-1B and L-1 workers

Under the proposal, employers with 50 or more U.S. employees would generally be unable to satisfy the new H-1B application requirement if more than 50% of their U.S. workforce consists of H-1B and L-1 workers combined.

This could particularly affect staffing, consulting, and outsourcing companies with large concentrations of temporary visa workers.

The bill would also expand worker nondisplacement requirements and restrict certain arrangements in which H-1B workers are assigned to third-party clients without a Department of Labor waiver.

For employees working at client locations, these provisions could have significant implications for how employers structure assignments.

3. Changes to H-1B selection priorities

S. 2928 proposes a prioritized allocation system for cap-subject H-1B petitions.

The proposed order would favor certain graduates of accredited U.S. universities, particularly advanced STEM degree holders, followed by categories involving higher wage levels, other U.S. graduates, shortage occupations, and employers meeting specified compliance standards.

That could improve the relative position of some international students graduating from U.S. universities while changing the selection prospects of applicants in other categories.

However, no such selection process has been implemented by S. 2928.

4. Possible implications for H-1B extensions and green-card applicants

One provision deserves particular attention from professionals navigating employment-based green-card backlogs.

Section 109 proposes revised language governing H-1B admission periods and extensions. It generally describes an initial period of up to three years and additional authorization under specified conditions involving approved employment-based immigrant petitions, while retaining exceptions under certain provisions of the American Competitiveness in the Twenty-first Century Act.

The interaction between these provisions and existing extension pathways would require careful legal analysis if the bill advanced.

People with pending PERM applications, approved I-140 petitions, or lengthy green-card waits should not assume their current extension eligibility has changed. This proposal does not itself alter their existing immigration status.

5. New rules for L-1 employees and international transfers

The proposal would strengthen restrictions on certain L-1 placements at unrelated client worksites, particularly involving specialized-knowledge employees.

It would also introduce wage requirements for L-1 workers employed in the United States for more than one cumulative year, using specified occupational wage benchmarks.

Additional provisions address verification of overseas company relationships, new U.S. offices, workplace conditions, and protections against employer retaliation.

These changes could be especially relevant to employees transferred from Indian companies to U.S. offices or client locations.

6. More employer oversight, audits, and penalties

The bill would expand the Department of Labor’s authority to investigate H-1B compliance and strengthen federal oversight of L-1 employers.

Proposals include additional employer documentation, more systematic audits, new enforcement resources, and increased penalties for certain violations.

The legislation also proposes a publicly searchable job-posting system, with certain H-1B positions advertised for at least 30 days before the relevant application.

Supporters argue that these provisions would discourage worker displacement and exploitation. Their practical effects would depend on the final legislation, regulations, and employer compliance.

What does this mean for Indian families?

Indian nationals constitute an important part of the employment-based immigration community, so proposals affecting H-1B and L-1 sponsorship deserve close attention.

For an H-1B employee currently working in the United States, S. 2928 does not automatically cancel an approved petition, change an existing I-94, or impose a new salary requirement.

For an international student planning to move from F-1 status to H-1B employment, the proposed allocation priorities could become relevant if enacted.

For a family waiting in the employment-based green-card backlog, provisions involving sponsorship and extension eligibility deserve particular scrutiny.

For employers, the proposal could mean additional hiring requirements, documentation, compliance costs, and restrictions on staffing arrangements.

These are possible implications of the proposed legislation, not changes that have already taken effect.

Has the bill become law?

No.

S. 2928 was introduced on September 29, 2025, and referred to the Senate Judiciary Committee. As of October 21, 2026, the official legislative information reviewed for this article does not establish that the bill has passed Congress or become law.

For the proposal to become federal law, it would generally need approval from both chambers of Congress and completion of the constitutional enactment process.

Its language could also change through amendments before any final passage.

What should readers do now?

There is no need to change an immigration filing or employment decision solely because this bill was introduced.

Readers should follow official legislative developments, distinguish proposed requirements from enacted rules, and consult qualified immigration counsel when evaluating employer changes, visa extensions, or green-card strategies.

Indian Expats in USA will continue tracking S. 2928 and other legislation affecting foreign workers and their families, with updates based on verified government records.

Official sources

• S. 2928 — Full introduced bill text, U.S. Government Publishing Office
• S. 2928 — Official congressional document details
• S. 2928 — Official GovInfo legislative status record
• Senators Grassley and Durbin’s September 29, 2025 announcement

This article is informational and does not constitute immigration or legal advice. Legislative status and proposed provisions should be rechecked before publication.