A legislation was introduced in the US House of Representatives today which has consequentially engendered a minimum salary of H-1B visa holders to almost doubled to $130,000.
H-1B was however passed in the States, but it has left no lesser impact in the Indian market. And why not? When events like Brexit and US Presidential elections could shake Indian stock markets not 180 degrees but total 360 degrees, this was indeed a big deal. Especially so for Indian Silicon Valley. The BSE IT index validates my point aptly. The BSE-IT radar dipped over around 400 basis points at the outbreak of the H-1B news.
Well, if this legislation gets rolling, it will become very difficult for American companies to use H1-B visas to hire foreign workers, including IT professionals from India.
The person who pioneered this move, Congressman Zoe Lofgren said, “The legislation offers a market-based solution that gives priority to those companies willing to pay the most.” He added, “This ensures American employers have access to the talent they need, while removing incentives for companies to undercut American wages and outsource jobs.”
“My legislation refocuses the H-1B programme to its original intent – to seek out and find the best and brightest from around the world, and to supplement the US workforce with talented, highly-paid, and highly-skilled workers who help create jobs here in America, not replace them,” said Lofgren.
The legislation, formally called the High-Skilled Integrity and Fairness Act of 2017, prioritises market-based allocation of visas to those companies willing to pay nothing less than atleast 200 per cent of wage figure.
This legislation also encompasses wage requirements for L-1 workers. The paramount reason behind administering the H-1B visa is to hamper companies’ from employing foreign workers, thereby bolstering the employment of natives.
What’s more? This will be a drastic shift from the currently followed minimum salary-level. It has raised salary level to $130,000 which is really double the current H-1B minimum wage of $60,000. The minimum figure of $60000 has surprisingly been unchanged until it was first declared in 1989.
If this wasn’t enough,the legislation will also book 20 percent of the annually allocated H-1B visas for small and start-up employers (50 or fewer employers) to bolster small businesses. This step will ensure that SME will not be isolated with the opportunity to compete for high-skilled workers, without compromising on outsourcing issues.
The legislation also engenders stringent employee protection by dictating rules which may not reduce beneficiary wages, irrespective of whether the deduction is in line with voluntary authorisation by the employee.
The H-1B and L-1 Visa Reform Act would require employers to first offer a vacant position to an equally or better qualified American worker before seeking an H-1B or L-1 visa holder.
Under the H-1B and L-1 Visa Reform, the Department of Labor and the Department of Homeland Security will have additional oversight authority to investigate fraud and abuse and also to increase penalties for companies that violate the bill’s requirements.
