The U.S. Citizenship and Immigration Services (USCIS) recently unveiled proposed rules aimed at modernizing and overhauling the H-1B visa program. While these changes are intended to increase flexibility and improve the system, experts in India believe that they might narrow the scope for applicants seeking to qualify for this coveted non-immigrant work visa.
The H-1B visa program, extensively utilized by U.S. employers to hire foreign professionals, particularly in the tech industry, allows them to bring in specialized talent for a specified period. Annually, approximately 85,000 H-1B visas are issued worldwide, with 20,000 of these reserved for applicants holding American master’s degrees or higher qualifications.
H-1B Visa Issues
India has consistently been a dominant player in the H-1B visa game, with roughly 70 per cent of these visas going to Indian applicants due to the sheer volume of applications they submit. However, the proposed changes in the rules could alter this scenario significantly.
The new rules, announced on October 23, are currently open for suggestions and comments over a 60-day period. Indian IT industry body, the National Association of Software and Service Companies (Nasscom), has already initiated a thorough industry assessment and is preparing a formal submission to address its concerns.
“Preliminarily, Nasscom notes that sections of the Proposed Rule align with the former administration’s unsuccessful attempts to limit the H-1B program in a manner that raises concerns for the IT industry,” Nasscom stated.
“For example, the proposed tightening of the definition and requirements for H-1B ‘speciality occupations’ narrows the scope of applicants who will qualify for an H-1B visa and ignores the nature of our modern workforce, not found in the Immigration and Nationality Act (INA).”
The proposed changes could create difficulties for companies looking to hire skilled workers to fill critical, currently vacant positions across STEM fields.
Kamal Karanth, Co-founder of staffing firm Xpheno, highlighted some key changes in the proposed rules. “Removal of the employer-employee relationship in the lottery process is a significant change being proposed. It opens avenues for founders to set foot with fewer restrictions around equity holding.
However, not mandating an employer-employee relationship can open up other complications of governance,” he warned. He added, “The other significant change is the removal of multiple application entries for the same resource. The single entry restriction will make it a fair competition for all in the applicant pool.”
Experts believe that these changes may not directly impact IT service players due to their maturity in talent deployment and visa usage. However, the heightened scrutiny proposed, including stricter site visits, is something that enterprises should be prepared for.
Sonam Chandwani, Managing Partner at KS Legal & Associates, sees the proposed changes as a reflection of the evolving global workforce. “Amid an evolving global workforce, the proposed changes to the H-1B visa program by the Biden administration aim to enhance efficiency, provide vital flexibility to students, entrepreneurs, and non-profit workers, and fortify the integrity of the system,” she explained.
“While these adjustments don’t alter the capped visa numbers, they reflect a progressive attempt to harmonize the demands of US employers, especially in tech sectors, with the aspirations of skilled workers from regions like India and China.”
Nasscom, on the whole, applauded the proposed changes, stating that they acknowledge the substantial gap in supply and demand for skilled workers, which is a recognition by the Biden administration.
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