New H-1B rules are set to release on July 8. What are controversial provisions that could hit Indians?

The US Citizenship and Immigration Services (USCIS) is set to announce new rules for H-1B visas which can have radical implications on employers and professionals, particularly Indians. The new rules are expected to be published on July 8 and will be open for public comment for a period of time before visa changes are legalised.

H-1B is the primary visa route taken by Indian IT firms to send their software engineering professionals to work in the US. Indians have traditionally been the largest number of H-1B visa takers.

The proposed rule would mandate a $4,000 fee to extend an H-1B visa and a $4,500 fee to extend an L-1 visa. This is part of the 9/11 Response and Biometric Entry-Exit Fee, which currently applies only to initial visa petitions and changes of employers.

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The proposed rule was introduced by USCIS on October 23 last year and is currently in a comment period that will last for 60 days. It may be finalised by the Biden administration at the end of this year or even after the upcoming election, according to Forbes.

What are proposed changes in H-1B visa programme that could affect Indians?

Many Indian H-1B visa holders and prospective applicants could be affected when proposed changes in the visas used by thousands from the country to live and work in the US are notified.

One controversial provision that critics are talking about is that the new rules would restrict positions eligible for H-1B visas by redefining speciality occupations.

It restricts job descriptions to those requiring specific degrees 'closely related to' the job with reference to “directly related specific speciality”.

In other words, it replicates a Trump-era rule that was blocked by courts for potentially excluding many skilled foreign professionals.

The Forbes report also highlights that most of the specialised professionals in the US do not have a degree "directly related" to a specific profession of speciality, which will restrict a lot more people in the new visa rules.

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Another disputed provision will likely affect individuals with degrees in business administration, as they would now be categorised as people with 'a general degree' insufficient for speciality occupation status.

This could be a big challenge for international MBA students aiming for H-1B status, and could reduce the number of international students enrolling in MBA programmes at US universities.

Further to redefining educational qualifications, the United States Department of Homeland Security (DHS) also plans to impose a hefty fee on employers for the extension of H-1B and L-1 visas.

At present, employers with over 50 employees over 50 per cent of the employees are on H-1B or L-1 visas are levied a fee.

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The H-1B visa allows American employers to hire skilled workers from abroad for specialised roles that cannot be filled locally. Similarly, the L-1 visa enables employees to transfer from a company in their home country to a related US branch, affiliate, subsidiary, or parent company.

As per a USCIS report, Indians hold the highest number of H-1B visas, and the new provisions in visa rule could hit them the most.

Companies with a significant number of visa extensions may face substantial financial burdens, potentially leading them to reassess their hiring strategies and approach to extending employment for foreign workers.

(With inputs from agencies)