Thu. Mar 28th, 2024

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The new rule calls for higher wages for H-1B visa holders

2 min read
US EB-5 Visas

On Thursday the US Department of Labor published a final rule increasing wage levels of workers on H-1B Visa Holders. As it moves to secure the jobs of American workers

The US Department of Labor is finding a way to strengthen pay protections, address abuses in visa programs. Also, protect American workers from being undercut by cheaper foreign labor, US Secretary of Labor Eugene Scalia said.

US employers will have to attest that they will pay non-immigrant workers. The higher the prevailing wage or the actual wage paid to other employees with comparable experience and qualifications. The rule will come into effect in 60 days.

A past attempt to introduce higher wages through an Interim Final Rule in October. But it was stuck somewhere by three different courts.

“These changes help guarantee that these important foreign worker programs function as Congress proposed while securing American workers’ opportunities for steady, great paying jobs. Because of the comments we got, the Department has changed the wages levels utilized in the Interim Final Rule to better reflect market wages and included provisions to smooth the transition to the new wage levels,” Scalia said.

Higher Wages for H-1B Visa Holders

Under the new rule, there is a multi-year progress period to the higher wage slabs for individuals utilized on H-1B visas and those looking for Green Cards under the PERM or employer-sponsored green card program

“It is doubtful that the DOL can execute this change as expected for the H-1B FY2022 cap selection. However, it can’t be ruled out as they can tweak things and have demonstrated they can do as such at a short notification,” said Poorvi Chothani, managing partner at LawQuest, an immigration law firm.

[Only the highest paid will be selected: An expert decodes Trump’s parting shot at H-1B]

This is the latest in a series of steps taken by the outgoing administration of US President Donald Trump in its final weeks to restrict the H-1B program.

On 31st December 2020 Trump expanded the ban on H-1B and L-1 visas till 31st March 2021

A week ago, the government said the H-1B cap selection visas would prioritize higher salaried candidates. Effectively getting rid of the lottery system followed up until this point. 

The latest move to increase wage levels will make it harder for small enterprises to recruit foreign workers, experts said.

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