There is a new legislation proposed in the US which will give preference to individuals educated in the US while granting H-1B and L-1 work visas. This likely to create some problems for large Indian IT companies like Infosys, TCS and Wipro. That is assuming that the bill actually passes. Experts are wary that the current high rates of joblessness in the US may spur support for such legislations. If this becomes law, then Indian IT engineers educated in India would be at a disadvantage. This will make it hard for these IT companies to transfer employees from India to other onsite locations in the US. Since most Indian IT companies are H-1B dependent employers in the US, their business models could suffer. The legislation also proposes prohibiting replacement of American workers by H-1B or L-1 visa holders. The bill also proposes to prohibit companies with over 50 employees (with half as H1-B and L-1 holders) from hiring additional H-1B employees. This law will also give the US Department of Labor unlimited powers to review, investigate and audit employer compliance as well as penalise. Even financial disclosure details have become more stringent.