Trump Administration Announces New Rules That Restrict H-1B Visa; Know How It Will Impact Indian IT Professionals

H-1B Visa Update: The new rules will have a bearing on foreign workers and employers, especially tech companies that have long supported the H-1B program and pushed hard for its expansion.

H1B Visa: In the latest attempt to woo American workers ahead of crucial elections, US President Donald Trump has wield the axe on foreign workers by announcing new restrictions on H-1B non immigrant visa programme.

What’s the move?

The new restrictions are specifically aimed at protecting American workers, restoring integrity and to better guarantee that H-1B petitions are approved only for qualified beneficiaries and petitioners.

The administration will cut back H1B visas for foreign skilled workers besides tightening wage-based entry barriers on the basis of "data" that pointed out more than 5 lakh Americans have lost their jobs because of "H1B non-immigrants".

The US Department of Labor's  will narrow the definition of "specialty occupation", require companies to make "real" offers to "real employees," and turbocharge its own ability to ensure compliance "before, during, and after an H1-B petition is approved".

Companies in the US will have to abide by the changes in the wage structure as well. "When seeking to employ an H-1B, H-1B1, or E-3 visa, US employers must attest that they will pay non-immigrant workers, during the period of authorized employment, the higher of the prevailing wage or the actual wage paid to other employees with similar experience and qualifications," US Department of Labor announced.

How it will impact Indian IT professionals?

The H1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.

The technology companies depend on this visa to attract employees each year from across the world. India and China has the lion's share of H1B visas. As per the US government data, India accounts for upwards of 70 per cent, most years.

Acting Deputy DHS Secretary Ken Cuccinelli has confirmed about one-third of the people who have applied for H1B visas would be denied under the new rules, as per news agency IANS report.

Since the announcement has comes less than four weeks ahead of the US presidential election, the announcement is not seen as a jolt to Indian workers as most foreign employees have anticipated such an action.

The restriction is likely to have an adverse impact on thousands of Indian IT professionals because a large number of Indians on the H-1B visas have lost their jobs and are headed back home during the coronavirus pandemic that has severely hit the US economy.