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US agency to roll draft wage rates for H-1B holders in September

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In the recently released “fall agenda,” the US government’s various immigration agencies have reiterated their intention to move forward with a rule to raise H-1B holders and green card holders‘ prevailing wage rates and modernize the H-1B program, including safeguards to prevent abuse.

On 14th November 2022, a final prevailing wage rule was supposed to take effect. However, this Trump-era regulation was overturned by a federal court with the approval of the Department of Labor (DOL). The Department of Labor (DOL) is currently enacting a new prevailing wage regulation, taking into consideration the public comments it received earlier.

Mitch Wexler, a partner at Fragomen, a global immigration law firm, provides the following explanation. “Publication of the draft new proposal is currently scheduled for September 2023.” “Curb exploitation of foreign workers, by ensuring that employers cannot hire below the market rate,” was one of the action points in the pre-election manifesto of US President Joe Biden.

In Sep US agency to roll draft wage rates for H-1B holders

Various government agencies announce their plans for long-term action plans twice a year. Agencies like the Department of State (DOS), the Department of Labor (DOL), and the Department of Homeland Security (DHS) typically outline immigration-related action plans. Following the publication of the draft proposals, public comments are typically accepted for 30 to 60 days. The entire process up until the proposal’s finalization takes a few more months after this stage.

The DHS is still working on a rule that would modernize the H-1B program. The H-1B employer-employee relationship is expected to be rewritten by this rule, which also gives flexibility to start-up entrepreneurs. Additionally, it includes a suggested course of action to implement the new requirements and guidelines for regulatory authorities’ site visits. To prevent misuse and fraud, the e-registration procedure will also be strengthened. The new target date for this proposed regulation has been moved up to October 2023 from May 2023.

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“Some aspects, like DHS stating when a material change to an H-1B employment necessitates the filing of an amended petition; or making it easier to notify US Citizenship and Immigration Services (USCIS) when an H-1B worker moves to a different worksite; will make the administrative process easier for employers in the US,” Wexler adds.

For now, DOS appears to have abandoned its plan to finalize a rule. That would have replaced the H-1B visa category with the B-1 business visitor category.

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