USA Delays Minimum Pay Rule for H-1B Visa Holders
On Friday, the Biden administration issued a notification for delaying a controversial rule proposed by the Trump administration, which called for increasing the mandatory minimum pay for H-1B visa holders in the USA. It is a positive move, as a higher minimum wage would have discouraged U.S. employers from hiring foreign workers.
The notification said that the U.S. Department of Labor is contemplating a further delay in the date of effect and implementation of the rule, currently scheduled for 14th May 2021 and 1st July 2021, respectively. Before making a decision, the Department will welcome public comments. On 1st February, the Department had proposed to delay the date of effect for 60 days until 14th May 2021.
The delay will allow agency officials to review matters related to policy, fact, and law. If the rule is imposed, it will become mandatory for U.S. employers to pay H-1B workers at the lowest wage level, an amount equivalent to at least the 35th percentile of the prevailing wage, depending on their job location and job type. H-1B visa holders will have to be paid the 90th percentile at the highest wage level compared to the 95th.
The H-1B visa allows U.S. companies to recruit foreign workers for specialty occupations that require technical or theoretical expertise. This visa is most popular among Indian I.T. professionals pursuing U.S. immigration. Tech companies in the USA heavily rely on this visa to hire Indian and Chinese workers for positions that U.S. workers cannot fill.
Currently, 85,000 H-1B visas can be issued every year. U.S. tech companies have demanded that the H-1B visa cap be increased. The immigration policy of the Biden administration is expected to be more liberal and welcoming. For the latest U.S. immigration updates and guidance on legal migration to the USA, contact our seasoned consultants at 8595338595 or write to [email protected]
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