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Biden admin issues notification to further delay mandatory minimum pay for H-1B visa

3 min read
US Visa renewal

The United States will postpone a rule that calls for increasing the minimum pay of H-1B visa holders.

The government of US President Joe Biden is expected to delay the Donald Trump-era rule to May 14 from its previous date of March 14, which had also been at first rescheduled from January 14 to allow for public comments.

The US Department of Labor will publish a notification in the Federal Register on Friday delaying the Final Rule to May 14 to ‘allow agency officials the opportunity to review any questions of fact, law, or policy.’

The implementation of the rule, which begins from July 1, however, stays unchanged as of now.

The Department of Labor said it had gotten 57 comments on the rule, of which 17 supported a delay.

Indian IT lobby group Nasscom said the rule was arbitrary and capricious and would have long-term repercussions on the US economy.

“We accept that if the Agency would take an impartial and considered view of the Final Rule. It would be revoked forthwith,” Nasscom VP Shivendra Singh said in the public comments.

Nasscom member organizations utilize the H-1B program to fill skill shortages. When local talent is not available and wages are equal to, if not higher, than prevailing wages, he added.

“Under the rule, sponsors could be forced to pay visa holders more than the prevailing wage. Earned by local U.S. citizen workers or to brings in a non-immigrant who is far more senior than the position requires. The Final Rule will create significant uncertainty in the sector. And would make it much harder for our members to hire highly skilled staff,” Singh said.

Biden issues notification to delay minimum pay for H-1B visa

Additionally, the American Immigration Lawyers Association (AILA) said that a postponed effective date until December 31. It is needed to allow the United States Citizenship and Immigration Services (USCIS) adequate time. To guarantee the effective and orderly implementation of the final rule.

It said that since employers begin preparing their filings months in advance. Any changes to the H-1B filing process so near to the registration and filing period would have an adverse effect on US employers, immigration lawyers, and workers.

The electronic registration process for H-1B visa applications for FY22 opened on March 9th, 2021, and will go on till the month’s end.

[US group opposes Biden admin’s steps on H-1B visas]

The rule requires a phased increase in wages for H-1B visa holders and those in line for lasting permanent residency through an employer-sponsored green card. Over time, this would increase wages by 23-41% depending on the role and location. Successfully pricing foreign students and a few others out of the job market.

US think-tank Economic Policy Institute has urged the Department of Labor to not delay the powerful date beyond March. The rule “doesn’t create any new or extra weights on H-1B employers. While giving significant benefits to the labor market and major H-1B industries. By helping ensure that H-1B petitions are awarded to the most highly skilled workers., it said in its comments.

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