The H-1B visa program is undergoing significant changes following a new executive order. The key alteration is the imposition of a $100,000 fee, set to take effect on September 21st. This impacts a large number of Indian workers holding H-1B visas. The order’s primary focus is on companies that hire a significant number of IT professionals from India.
The revised regulations dictate that companies seeking to sponsor an employee from outside the US for an H-1B visa must provide proof of having paid the $100,000 fee. The rule is applicable to the employers, not the visa holders.
There are certain exemptions to the fee. Current H-1B visa holders who are already in the US are not required to pay it. However, if an H-1B visa holder has been outside the US for over a year, they must return before the deadline to avoid the fee. The Secretary of Homeland Security can also grant exemptions based on national security, economic benefits, or public good. Employees in the defense, healthcare, or essential technical sectors that benefit the US may also qualify for an exemption.
Indian nationals are poised to be the most affected, given the high percentage of H-1B applications from India, primarily within the IT sector, in the past year. The new order has an initial term of 12 months, with possible extensions.
Trump argued that the original intent of the H-1B visa had been compromised, with companies utilizing it to bring in lower-paid foreign workers instead of hiring American citizens. The goal of the new regulations is to protect American jobs and ensure that only truly skilled talent is recruited.
Legal experts are raising questions about the legality of this $100,000 fee. Some believe the fee is vulnerable to legal challenges due to its potential violation of existing laws.