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Proposed H-1B Visa Reforms: Key Changes and Implications

Proposed H-1B Visa Reforms: Key Changes and Implications

Proposed H-1B Visa Reforms: Key Changes and Implications

The U.S. Senate is deliberating upon the so-called “The American Tech Workforce Act,” which aims to overhaul the H-1B visa regime. Introduced by Senator Jim Banks, this legislation is focused on addressing the issue regarding foreign labor with respect to American jobs and wages.
Proposed H-1B Visa Reforms: Key Changes and Implications

Major Provisions of the Act

Elimination of the H-1B Lottery:

The current practice of random lottery for H-1B visa allotment shall be replaced by merit- or compensation-based selection, which privileges applicants with the highest offers of compensation.

Increased Minimum Salary Requirement:

The proposed legislation wishes to see an increase in the H-1B minimum salary from $60,000 to $150,000 per year, so as to ensure the comparative pay of foreign workers to that of American workers.

Abolition of the Optional Practical Training (OPT) Program:

  • Abolishing the OPT program, which provides temporary work permits for international students pursuing degrees in the U.S., is a part of these proposals.
  • Restrictions on Third-Party Work Assignments:
  • Some restrictions would be imposed under the law on foreign worker placements at third-party work sites, including limiting the validity of the H-1B visa to one year.

Implications for Indian Professionals:

Since a major chunk of H-1B visa holders are Indian nationals, the potential changes could wreak havoc with Indian professionals hoping to get a foothold in the United States. The raised salary barrier, in conjunction with a merit-based selection process, could stifle entry-level employment opportunities, while the termination of the OPT program could block many recent graduates in their tracks.

Conclusion

The “American Tech Workforce Act” was intended to initiate a major transformation of U.S. policy for skilled foreign labor. Once put in place, these measures would change the working pattern of Indian professionals aspiring to work in the United States. When looking for expert guidance, choose the best immigration partner, Abhinav Immigration Services.