{"id":501,"date":"2021-01-19T08:36:14","date_gmt":"2021-01-19T08:36:14","guid":{"rendered":"https:\/\/www.h1btransfersusa.com\/blog\/?p=501"},"modified":"2021-01-19T08:36:16","modified_gmt":"2021-01-19T08:36:16","slug":"it-services-companies-may-have-to-pay-more-to-employees-placed-at-third-party-locations-in-the-us","status":"publish","type":"post","link":"https:\/\/www.h1btransfersusa.com\/blog\/it-services-companies-may-have-to-pay-more-to-employees-placed-at-third-party-locations-in-the-us\/","title":{"rendered":"IT services companies may have to pay more to employees placed at third-party locations in the US"},"content":{"rendered":"\n

In a move that is probably going to hamper the ability of Indian IT firms<\/strong> to place employees at third-party locations<\/strong> in the US. The US Department of Homeland Security on Friday corrected its guidelines <\/strong>on how the agency will determine the employer-employee relationship\u2019 for an H-1B non-immigrant visa applicant.<\/strong> <\/p>\n\n\n\n

Under the new provisions<\/strong>, the primary and secondary employer (end client) should file a petition with the USCIS<\/strong>. And be responsible for the employee. The rule is effective July 14thand<\/strong> will not apply to exist filed, pending, and approved petitions<\/strong>. The guideline puts forth a set of eleven criteria that have to be met to prove an employer-employee<\/strong> relationship when the person is placed at a client location.<\/p>\n\n\n\n

The new salary <\/strong>and compliance requirements could demonstrate very onerous for Indian IT companies.<\/strong> Additionally, the requirement for the end customer called the common law employee. To file a separate LCA <\/strong>and comply with wage obligations would be extremely difficult. These organizations are exceptionally hesitant to even post LCAs at the worksite where IT company employees<\/strong> are posted. The need for an independent LCA also requires posting it for public viewing. Said Poorvi Chothani, managing partner at LawQuest, an immigration law firm<\/strong>.<\/p>\n\n\n\n

An LCA or labor condition application is a form filed by employers for work approval of non-immigrant employee<\/strong>s. The DHS said that the changes were expected to \u2018strengthen the H-1B program <\/strong>and to more effectively guarantee that only qualified petitioners are eligible to petition for H-1B workers<\/strong>‘. In line with the Buy America Hire American order passed in 2017.<\/p>\n\n\n\n

Indian IT firms to place employees at third-party locations in the US<\/h2>\n\n\n\n

Under this rule, employees should be paid the higher of the prevailing wage <\/strong>at the primary employer or the end client. This could become very expensive and make projects unviable, said Chothani. For example, an H-1B visa holder<\/strong> is recruited at a salary that is higher than the prevailing wage rate. And placed with a secondary employer who pays its workers a higher salary<\/strong>. The organization is currently required to pay the H-1B worker<\/strong> at par with its existing employees, which was not the case before. <\/p>\n\n\n\n

Likewise, if the primary employer doesn’t offer paid leave<\/strong>. However, the client where the individual is put does. Then the employee will be entitled to paid leave as per the secondary employer\u2019s policies.<\/p>\n\n\n\n

[New rule calls for higher wages for H-1B visa holders<\/span><\/a>]<\/h4>\n\n\n\n

This Trump rule is intended to destroy the IT industry that hires H-1B workers.<\/strong> However by forcing their customers to also file H-1Bs as secondary employers. Corporate America <\/strong>will also get destroyed if it does not receive the services of skilled H-1B workers. Said immigration attorney Cyrus Mehta on Twitter.<\/p>\n\n\n\n

This is the latest in a series of steps taken by the Trump government<\/strong> over the last few weeks to make changes to the H-1B program<\/strong>. By placing in higher wage requirements and getting rid of the random lottery selection process<\/strong>. While some of these changes will be challenged in court, it additionally remains to be seen. Whether President-elect Joe Biden <\/strong>who takes charge on 20th January 2021<\/strong> will reverse any of these policy changes.<\/p>\n","protected":false},"excerpt":{"rendered":"

In a move that is probably going to hamper the ability of Indian IT firms…<\/p>\n","protected":false},"author":1,"featured_media":430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[57],"tags":[238,221,63,28,24,138,113,59,36,76,148,298,94,46,19,11],"yoast_head":"\nIT Firms have to pay more to employees at third-party locations in the US<\/title>\n<meta name=\"description\" content=\"In a move that is probably going to hamper the ability of Indian IT firms to place employees at third-party locations in the US.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.h1btransfersusa.com\/blog\/it-services-companies-may-have-to-pay-more-to-employees-placed-at-third-party-locations-in-the-us\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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