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Feb 05, 2026
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Fire H-1B workers or pay India’s tax — US firms in a bind
Thousands of H-1B workers who travelled to India are now stuck there for months because of long visa interview delays. What began as a routine trip home has turned into a major headache—not just for workers, but also for their US employers. Companies are now struggling with a tough question: should they allow these employees to work remotely from India for a long period, or risk losing them altogether? Either option comes with serious tax and legal consequences.
H-1B workers stuck in India leave US companies in a tax fix
The issue began in mid-December, when US consular offices suddenly rolled out stricter social media screening rules. Visa interviews were pushed back with no warning. Some appointments have now been rescheduled as far out as 2027.
The timing couldn’t have been worse. Many H-1B workers had travelled during the holiday season, which is when they usually renew their visas. The situation has been especially chaotic for Indian workers, who make up the largest share of the H-1B workforce. The State Department has not said how many interviews were affected. But nearly 17,000 H-1B visas were issued in Chennai alone in December 2024, according to Bloomberg. Because of the delays, families have been separated, children’s schooling has been disrupted, and careers have been thrown into limbo.
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