The H-1B and L-1 Visa Reform Act of 2025 seeks to significantly overhaul the H-1B and L-1 nonimmigrant visa programs to reduce fraud and abuse. For H-1B visas, the bill mandates that employers pay the highest of the prevailing wage, median wage, or skill level 2 median wage for the occupation. It also requires employers to post detailed job descriptions on a Department of Labor website for at least 30 days and prohibits advertising positions exclusively for H-1B workers or giving them hiring preference. The legislation introduces strict non-displacement rules, preventing employers from replacing U.S. workers with H-1B nonimmigrants 180 days before or after their placement. It also limits the proportion of H-1B and L-1 employees to 50 percent for companies with 50 or more U.S. employees. The definition of a "specialty occupation" is tightened to require an actual bachelor's or higher degree directly related to the field. H-1B visa allocation would prioritize graduates with advanced STEM degrees from U.S. institutions, followed by those offering higher wages, and then employers demonstrating good corporate citizenship. The bill limits H-1B authorized admission to three years, with exceptions for those with approved employment-based immigrant petitions. It also explicitly eliminates the use of B-1 visas for work typically requiring an H-1B. Enforcement is significantly bolstered, with the Department of Labor gaining subpoena authority and a mandate to conduct annual compliance audits for at least one percent of H-1B employers, and all employers where H-1B workers constitute over 15 percent of their workforce. Penalties for violations are increased, including higher fines, bans on future petitions, and liability for lost wages and benefits. The bill also protects H-1B nonimmigrants from retaliation for reporting violations, offering a 90-day grace period to find new employment. For L-1 visas, the bill prohibits the outplacement of L-1 workers for more than one year unless a waiver is granted under strict conditions, including no displacement of U.S. workers. It also imposes direct prohibitions on U.S. worker displacement by L-1 nonimmigrants. New office L-1 petitions face stricter initial approval (12 months) and extension requirements, demanding a robust business plan and financial viability. L-1 employers who employ nonimmigrants for over one year must meet similar high wage requirements as H-1B employers and offer comparable benefits to U.S. workers. The definition of "specialized knowledge" for L-1 visas is narrowed to require unique, proprietary expertise not readily available in the U.S. labor market. The Department of Homeland Security is granted investigation and audit authority for L-1 employers, with increased penalties for non-compliance and protections against retaliation for L-1 nonimmigrants. Finally, the bill mandates greater transparency by requiring employers to provide immigration paperwork to employees and establishing a Department of Labor website for job postings. It also authorizes 200 additional Department of Labor employees for enforcement and requires comprehensive annual reports on H-1B and L-1 visa usage, employer data, and worker characteristics to Congress.