New proposed Immigration Legislation which is currently pending in the United States Senate may cause India-based IT companies to step up their operations in Mexico. The bill, by Senators Dick Durbin and Chuck Grassley, would impose a new limit on the proportion of foreign workers who would be allowed to work in the United States under the H1B and L-1 visa programs. The proposed legislation said says for 50-50 rule, which means no more than half of a firm’s U.S.-based employees could be H1B or L-1 beneficiaries. This measure may create uncertainty in Indian IT firms, because their U.S. operations typically have a very high percentage of foreign employees, often far exceeding the proposed 50 percent limits.
Indian IT companies may need to expand their presence in Mexico, because Mexican employees could be sent to the United States under TN visas, available only to Mexican and Canadian nationals, pursuant to the North American Free Trade Agreement (NAFTA). Mexican employees whose education, work experience, and job category qualify them for TN visas, would be able to work in the United States without counting against the Indian company’s 50 percent cap on employees with H1B and L-1 visas.
The TN category is special category created under NAFTA (North American Free Trade Agreement) for qualifying professionals who are nationals of Canada or Mexico. Aliens qualified to enter the U.S. under this category may work for a company located in the U.S. for a temporary period. Moreover, they may also work for a Canadian or Mexican company in the U.S. when those companies are engaged in projects with U.S. based companies. The initial time limit for a TN professional to work in the U.S. is one year. However, this period may be renewed indefinitely, at year to year increments.
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