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Pradeep Kumar

01/04/21 17:00 PM IST

H1-B Visa ban has expired

What are H-1B wok visas?

      In 1952, after the US started expanding its presence in the science, technology, engineering and mathematics disciplines, it felt the need to hire quality workers who could help the country achieve innovation in these areas at reasonable costs. This need to hire workers paved way for the introduction of the H-1 work visa system.

     This work visa system was further subdivided into H-1B, H-2B, L1, O1, and E1 visas, depending on the qualification required and the area for which workers were sought. Of these, the H-1B visa remains the most popular due to the relatively better wage chance it offers.

    The arrival of internet and low-cost computers in homes and universities of developing nations such as India, China, and Pakistan saw a large number of students graduating in disciplines related to computer science, technology, engineering and mathematics (STEM). Lack of jobs in their home countries, on the other hand, meant that the STEM graduates were willing to work in the US at relatively low costs, which proved to be a win-win situation for both the employer and the employee, thereby making the H-1B work visas the most popular.

    The H-1B work visa system has since undergone many changes and revisions to allow or disallow certain categories of skilled workers in the US, depending on the economic situation of the country. Of late, however, it has also been often been criticised for sending low-cost workers to the US at the expense of domestic workers.

Why was this new wage based work visa regime introduced?

       The new wage-based work visa regime will now give priority in selection of visas to applications of those employers where the “proffered wage equals or exceeds” the prevailing level in that area of employment. The proffered wage is the wage that the employer intends to pay the beneficiary. This will be done for both the 65,000 regular visas and the 20,000 advanced degree exemption visas. This regime will also take into account the skill set that the respective worker brings to the country and cross check it whether such skill set is available at the same cost among the US workers.

       According to the USCIS, since it is not possible to individually judge the skill set of all the applicants to the H-1B work visa regime, salaries are the best indicators of the same as employers would pay high wages only to the most deserving candidates. This, the USCIS said, would also not undercut the jobs that could be done by US workers who would otherwise be unemployed.

When Immigration and nationality act introduced in US?

On June 27, 1952, Congress passed the Immigration and Nationality Act after overriding a veto by President Harry S. Truman. For the first time, the Immigration and Nationality Act codified United States' immigration, naturalization, and nationality law into permanent statutes, and it introduced a system of selective immigration by giving special preference to foreigners possessing skills that are urgently needed by the country. Several different types of visas were established, including a H-1 visa for "an alien having a residence in a foreign country which he has no intention of abandoning. who is of distinguished merit and ability and who is coming temporarily to the United States to perform temporary services of an exceptional nature requiring such merit and ability.

The Immigration Act of 1990 was signed into law by President George H. W. Bush on November 20, 1990. The H-1 visa was replaced by two different visas. An H-1A visa was created for nurses, and the H-1B visa was established for workers in a "specialty occupation". The Immigration Act defined a specialty occupation as "an occupation that requires theoretical and practical application of a body of highly specialized knowledge, and attainment of a bachelor's or higher degree in the specific specialty (or its equivalent) as a minimum for entry into the occupation in the United States". In order to qualify, a visa applicant needed any applicable state license for the particular occupation and either a educational degree related to the occupation or an equivalent amount of professional experience.

Where new amendment can be seen in H1-B visas recently?

US Citizenship and Immigration Services (USCIS) has announced a final rule that will modify the H-1B cap selection process, amend current lottery procedures, and prioritize wages to protect the economic interests of US workers and better ensure the most highly skilled foreign workers benefit from the temporary employment program.

Modifying the H-1B cap selection process will incentivise employers to offer higher salaries, and/or petition for higher-skilled positions, and establish a more certain path for businesses to achieve personnel needs and remain globally competitive.

The final rule will be effective 60 days after its publication in the Federal Register.

It will be implemented for both the H-1B regular cap and the H-1B advanced degree exemption, but it will not change the order of selection between the two as established by the H-1B registration final rule, USCIS said.

It will maximize H-1B cap allocations, so that they more likely will go to the best and brightest workers; and it will disincentivise abuse of the H-1B programme to fill relatively lower-paid, lower-skilled positions, which is a significant problem under the present selection system, it said.

The changes in this final rule will apply to all registrations, including those for the advanced degree exemption, submitted on or after the effective date of the final rule.

As per Congressional-mandated cap, USCIS in one year can issue a maximum of 65,000 H-1B visas. It can also issue another 20,000 H-1B visas to those foreign students who have completed higher studies from a US university in STEM subjects.+

Who issues H1-B visas in USA and by which system?

     Currently, every year the US administration issues 85,000 H-1B work permits. Of these, 65,000 are for people with specialty occupations, while the rest are reserved for foreign workers who have earned a Master’s or a higher university degree in the US.

     Each employer who seeks to employ a worker on H-1B visa must fill out a registration form on behalf of the employee who they wish to employ. The form contains all the details of the employee, such as the nature of work they will undertake in the US, the wage being offered to them, the level of education of these workers and so on.

     Since the number of applications for H-1B visas filed each year exceeded the 65,000 cap in the specialty occupations and 20,000 for the higher education category, the US Citizenship and Immigration Services then employed a random lottery selection of the eligible applicants to fill the 65,000 vacancies, and then moved on the fill the next 20,000. This lottery system was completely randomised and did not take into account any requirements such as wages, skills or needs of the employer.

How H1-B visa is different from H2 B and L visa?

H1B Visa

  • It is most popular among Indian IT companies. Issued for a period of 3 to 6 years.
  • Meant for persons in Specialty Occupation: to work in a specialty occupation, one requires a higher education degree or its equivalent.
  • The total number of H-1B visas issued annually: 85,000.
  • Of these, 65,000 H-1B visas are issued to highly skilled foreign workers, while the rest 20,000 can be additionally allotted to highly skilled foreign workers who have a higher education or master’s degree from an American university.
  • Indian nationals have been receiving about 70% of these work permits, the majority of them, software engineers working for technology companies.
  • H-1B visa holders who are currently not in the US can still re-enter the country. This visa ban also does not impact people waiting for visa renewals who are already in the US.

H2 B Visa

  • It permits employers to hire foreign workers to come temporarily to the United States and perform temporary nonagricultural services or labor on a one-time, seasonal, peak load or intermittent basis.
  • H-2B visa holders are allowed for one year, with renewal for two years.

L Visa

Meant to transfer candidates who already work for a foreign branch of a US-based company, or are planning to open operations in the US of a foreign-based company.

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