NASSCOM Worries About Proposed H-1B Modernization Rule

The National Association of Software and Service Companies (Nasscom), a leading trade organization representing India’s IT sector, has expressed its apprehensions regarding specific aspects of the recently proposed H-1B program modernization rule by the Department of Homeland Security (DHS). Nasscom believes that this rule presents challenges to the industry.

A significant concern raised by Nasscom pertains to the suggested tightening of the definition and requirements for H-1B “specialty occupations.” Nasscom has pointed out that this alteration could restrict the number of eligible applicants for H-1B visas. This limitation, in turn, could impede companies from hiring skilled professionals to fulfil vital roles in STEM fields.

NASSCOM is waiting for H-1B Updates

The current stage allows a 60-day period for public feedback on this proposed rule, during which Nasscom plans to submit comprehensive comments addressing the concerns of the IT industry.

A substantial proportion of H-1B visas are held by Indian professionals employed in the technology sector. The proposal also introduces the concept that, in cases where an H-1B worker is assigned to a third-party organization, the criteria of the third party, rather than the sponsoring employer, play a more significant role in determining if the position qualifies as a specialty occupation.

While this adjustment may simplify the process of demonstrating an employer-employee relationship based on common law, it could result in a rise in requests for additional evidence and a potential increase in application rejections.

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