H-1B VISA

The United States has recently made significant changes to its H-1B visa program, prioritizing higher wages and skills when selecting candidates instead of the previous lottery system. 

2. The Genesis of H-1B Work Visas

• In 1952, as the United States expanded its presence in science, technology, engineering, and mathematics (STEM) fields, it sought skilled workers to drive innovation at reasonable costs.
• This led to the introduction of the H-1 work visa system, which includes H-1B, H-2B, L1, O1, and E1 visas, tailored to specific qualifications and job categories.
• Among these, the H-1B visa emerged as the most popular due to its relatively better wage prospects.
• H-1B visas are for temporary workers in speciality occupations, which are defined as those requiring theoretical and technical expertise in a specific field, such as engineering, mathematics, science, or medicine.
• H-1B workers must have a bachelor's degree or equivalent in their field, and their employer must obtain a Labor Condition Application (LCA) from the US Department of Labor (DOL).

3. Globalization of STEM Graduates

• With the proliferation of the Internet and affordable computers in developing nations like India, China, and Pakistan, a surge of STEM graduates emerged.
• These graduates, facing a scarcity of job opportunities in their home countries, were eager to work in the United States at competitive wages.
• This symbiotic arrangement benefited both employers and employees, making H-1B work visas highly sought-after.
• The H-1B visa system has undergone numerous revisions to accommodate or restrict the entry of skilled workers, depending on the U.S. economic climate.
• However, it has also faced criticism for potentially displacing domestic workers with lower-cost foreign labour.

4. The Old Lottery System

• Previously, the U.S. administration annually issued 85,000 H-1B work permits, with 65,000 allocated for individuals in speciality occupations and the remainder for foreign workers with advanced U.S. degrees.
• Employers seeking H-1B hires submitted registration forms with employee details, including job nature, offered wages, and education levels.
• Due to an overwhelming number of applications, a random lottery determined the selection for the 65,000 speciality occupation visas, followed by the 20,000 advanced degree exemption visas. This lottery system disregarded wage levels, skills, or employer needs.

5. The New Wage-Based H-1B Visa Regime

In the latest development, the H-1B visa selection process has shifted toward a wage-based model that prioritizes certain criteria.

1. Wage Prioritization: The new regime gives priority to applications from employers offering a "proffered wage" that equals or exceeds the prevailing wage level in the area of employment. The proffered wage is the salary the employer intends to pay the visa beneficiary. This rule applies to both the 65,000 regular visas and the 20,000 advanced degree exemption visas.

2. Skill Assessment: Additionally, the system considers the skill set of the prospective worker and evaluates whether similar skills are available among U.S. workers at a comparable cost.

7. The Way Forward

• The shift from the lottery-based selection system to a wage-based regime marks a significant change in the H-1B work visa program.
• This adjustment aims to align the visa allocation process with market-driven factors such as wages and skill sets, potentially mitigating concerns about undercutting domestic employment opportunities.