H-1B Visa Rule Changes: Impact on US Tech Hiring

The U.S. Government Proposes Significant Changes to the H-1B Visa Program


The U.S. Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) have proposed major changes to the H-1B visa program, which could significantly impact companies, foreign workers, and especially those from India.


Increased Fees for Visa Extensions


One of the key proposals is the introduction of new fees for extending H-1B and L-1 visas. Currently, only certain large companies pay this fee when extending visas for their H-1B or L-1 employees. However, under the new proposal, all companies applying for visa extensions would have to pay:


$4,000 for extending an H-1B visa


$4,500 for extending an L-1 visa


The government claims these fees are necessary to improve the system that tracks when foreign nationals enter and leave the U.S., as well as to ensure all employers contribute to national security efforts.


Narrowing the Definition of “Specialty Occupation”


Another significant change would limit the types of jobs that qualify for H-1B visas. The proposed rules would require jobs to specifically require a related degree, rather than just a general degree like business administration or liberal arts. This could impact many skilled professionals, including those in the tech industry, where degrees don’t always match the exact job requirements.


Potential Impact on Companies and Foreign Workers


These proposed changes could make it more difficult and costly for companies to hire foreign talent, which may affect their competitiveness and the availability of jobs for Indian professionals in the U.S. Immigration experts anticipate an increase in requests for additional evidence during the application process, which could potentially lead to more visa rejections.


The rules are currently open for public comment until July 8, 2024, after which the DHS will decide whether to finalize them. If implemented, these changes could significantly impact the ability of companies to hire and retain foreign workers, particularly those from India, who have traditionally been a significant beneficiary of the H-1B visa program.

Could these fee hikes lead to a shift in the types of jobs offered to H-1B visa holders

Based on the search results, the proposed fee increases for H-1B and L-1 visa extensions could lead to a shift in the types of jobs offered to H-1B visa holders:

Narrowing the Definition of “Specialty Occupation”:

The proposed rules would require H-1B jobs to specifically require a related degree, rather than just a general degree like business administration or liberal arts.

This could impact many skilled professionals, including those in the tech industry, where degrees don’t always match the exact job requirements.

Immigration experts anticipate an increase in requests for additional evidence during the application process, which could potentially lead to more visa rejections.

Preference for Higher-Skilled, Higher-Paid Positions:

The new rules aim to “confine the entry of regular low-paid tech employees to prevent the displacement of American employees by low-paid foreign labor.”

This suggests the government may prioritize H-1B visas for more specialized, higher-skilled, and higher-paid positions that can demonstrate the need for foreign talent.

Positions that do not require a directly related degree or command higher salaries may become less viable for H-1B sponsorship.

Challenges for Small and Medium-Sized Companies:

The significant fee increases for visa extensions, up to $4,000 for H-1B and $4,500 for L-1, will be a much larger burden for smaller companies with fewer H-1B and L-1 employees.

Immigration experts warn that the increased fees could “price out” smaller companies from the H-1B visa process altogether, potentially leading them to focus on hiring local talent instead.

In summary, the proposed changes to the H-1B visa program, including the fee hikes and narrowing of the “specialty occupation” definition, could shift the types of jobs offered to H-1B visa holders towards more specialized, higher-skilled, and higher-paid positions, while making it more challenging for smaller companies to utilize the program. This could have significant implications for the availability of H-1B jobs, especially in the tech industry.

How might the new definition of a “specialty occupation” impact job opportunities for H-1B visa holders.

The proposed changes to the definition of a “specialty occupation” for H-1B visas could significantly impact job opportunities for H-1B visa holders in several ways:

Narrowing the Acceptable Degree Fields:

The new rules would require a direct relationship between the required degree field(s) and the duties of the H-1B position.

General degrees like business administration or liberal arts would no longer be sufficient if further specialization is not required for the role.

For example, a marketing manager position requiring only a general business degree may no longer qualify as a specialty occupation.

This could limit the types of jobs available to H-1B visa holders, especially in fields where a specific degree is not always necessary.

Increased Scrutiny on Degree Requirements:

The proposed rules aim to clarify that a position may allow a range of related degrees, but the petitioner has the burden of establishing how each degree relates to the occupation.

USCIS will likely issue more Requests for Evidence (RFEs) and potentially deny more H-1B applications if the degree requirements are not clearly tied to the job duties.

This added scrutiny could make it more challenging for employers to sponsor H-1B workers, reducing job opportunities.

Impact on Third-Party Placements:

When an H-1B worker is placed at a third-party client site, the new rules would make the client’s requirements most relevant in determining if the position qualifies as a specialty occupation.

Obtaining justification from the client on the degree requirements could be difficult for the sponsoring employer and lead to more RFEs and potential denials.

However, the proposed rules would eliminate the need to demonstrate a common law employer-employee relationship, which was previously used to deny visas if the employer could not establish control over the H-1B worker at a third-party site.

In summary, the narrowed definition of specialty occupation, increased scrutiny on degree requirements, and changes to third-party placements could significantly limit the types of jobs available to H-1B visa holders and make it more challenging for employers to sponsor them. This could have a substantial impact on job opportunities, especially in fields where a specific degree is not always necessary for the role.

Will the new criteria for specialty occupations lead to more H-1B visas being approved in healthcare.

The proposed changes to the definition of “specialty occupation” for H-1B visas are unlikely to lead to more approvals for healthcare positions. In fact, the new criteria may make it more challenging for some healthcare workers to qualify:

Narrowing the Degree Requirements:

The proposed rules would require H-1B jobs to specifically require a degree directly related to the occupation, rather than just a general degree.

This could impact many healthcare roles, as degrees don’t always perfectly match the job duties, especially for positions like nursing or physical therapy.

Immigration experts anticipate an increase in Requests for Evidence (RFEs) and potential visa denials if the degree requirements are not clearly tied to the job.

Impact on Nursing Roles:

Typically, registered nurse (RN) positions only require a 2-year degree, which would not meet the new “specialty occupation” criteria.

Only nurse practitioners, nurse administrators, and nurse managers with more advanced degrees may qualify for H-1B visas under the proposed rules.

Challenges for Allied Health Professionals:

Positions like physical therapists and occupational therapists may still qualify, as a bachelor’s degree is generally the minimum requirement.

However, the increased scrutiny on degree requirements could make it more difficult to demonstrate the specialty nature of these roles.

Potential Impact on Physicians:

Physicians, including those in residency programs, may continue to qualify for H-1B visas, as they typically have advanced medical degrees.

However, the new rules could still create additional hurdles, such as requiring more evidence to prove the specialty nature of the occupation.

In summary, the proposed changes to the definition of “specialty occupation” for H-1B visas are more likely to make it more challenging for certain healthcare workers, especially nurses and some allied health professionals, to qualify for the program. The increased scrutiny on degree requirements could lead to more RFEs and visa denials in the healthcare sector, rather than an increase in approvals.