The Karnataka government, led by Chief Minister Siddaramaiah, has paused the employment quota bill for locals in the private sector after criticism from industry leaders and the public. The bill initially proposed a 50% quota for administrative roles and 75% for non-administrative roles. Siddaramaiah announced the decision on social media platform X (formerly Twitter) following a cabinet meeting on Monday.

Earlier, Siddaramaiah posted about a 100% reservation for local Kannadigas in 'C' and 'D' grade roles, but this post was deleted after backlash from industry leaders like Biocon’s Kiran Mazumdar-Shaw, who argued it would harm the IT sector and was discriminatory. Siddaramaiah later clarified that the bill is still in the preparation stage and will be reviewed in the next cabinet meeting.

Labour Minister Santosh S Lad stated that jobs could be outsourced if local skills were unavailable, but the aim is to prioritize local skills. The bill needs to pass the state Assembly and receive the governor's assent to become law.

The decision is seen as a response to growing calls for local protectionism, supported by pro-Kannada activists and groups like Karnataka Rakshana Vedike (KRV), who have protested against English signboards. The Bengaluru civic body, Bruhat Bengaluru Mahanagara Palike (BBMP), issued a notice requiring 60% of signage to be in Kannada, leading to the Kannada Language Comprehensive Development (Amendment) Act, 2024. The Retailers Association of India challenged this rule, resulting in a court order preventing coercive action against non-compliant businesses.

Nasscom expressed disappointment, stating the bill would hinder the tech industry's growth and force companies to relocate. Kiran Mazumdar-Shaw called for exemptions for highly skilled recruitment. The bill's future remains uncertain as further discussions are planned.