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New H-1B selection process based wages on to come into effect on March 9

The new rule will favor the highest paid employees and, hence, impact the STEM graduates and freshers, majority of them Indians in the US.

January 08, 2021 / 06:35 PM IST

The Department of Homeland Security (DHS) will publish the final rule for the new H-1B selection process based on wages instead of lottery on January 8 in the Federal Register.

Every year the US receives far more applications than the H-1B quota permits, one of the reasons why the lottery or random selection process was followed. The new rule will favour the highest paid employees and, hence, impact the STEM graduates and freshers, majority of them Indians in the US.

The rule will be effective 60 days from the date of publishing, which would be March 9, right before the start of H-1B registration that begins mid March.

“The current H-1B random selection process makes it difficult for businesses to plan their hiring, fails to leverage the program to compete for the best and brightest international workforce, and has predominantly resulted in the annual influx of foreign labor placed in low-wage positions at the expense of the US. workers,” said USCIS Deputy Director for Policy Joseph Edlow.

The change will affect H-1B registrations (or petitions, if the registration process is suspended) submitted by prospective petitioners seeking to file H-1B cap-subject petitions. 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, the US Citizenship and Immigration Services in a statement said in a statement.


“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 statement added.

“The H-1B temporary visa program has been exploited and abused by employers primarily seeking to fill entry-level positions and reduce overall business costs,” Edlow added.
Moneycontrol News
first published: Jan 8, 2021 09:41 am
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