H-1B visas: In a move that could help Indian IT professionals and those working in the healthcare sector, the Trump Administration has announced certain exemptions in H-1B and L-1 travel ban for those continuing employment with the same employer.
The exemptions to the June 22 Presidential Proclamation 10052, commonly referred to as the H-1B or L-1 Travel Ban, also includes the family members of the H-1B, L-1 and certain categories of J1 visas.
President Donald Trump, in his June proclamation, banned the entry into the US of workers in several key non-immigrant visa categories, including the H-1B, arguing that they eat into American jobs during the COVID-19 pandemic.
The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. Companies depend on it to hire tens of thousands of employees each year from countries like India and China.
The State Department, which issued the revised travel advisory, on Wednesday said that the exemptions have been given under national interest category.
The State Department said in its advisory that H-1B and L-1 visas can now be issued for employees who are “seeking to resume ongoing employment in the United States in the same position with the same employer and visa classification.” Forcing employers to replace existing employees may cause financial hardship, it said.
Analysts believe that some relaxations are bound to be made. “It is impossible to locally develop the high-end skillsets overnight,” said Sanchit Vir Gogia, CEO & chief analyst, Greyhound Research. “Outsourcing helps American companies save costs and achieve scale.”
IT industry apex body Nasscom earlier stated there was a huge shortage of STEM skills in the US, that workers on visas like H-1B and L-1 help bridge. Unemployment rate for computer occupations (those most common among H-1B visa holders) declined from 3% in January to 2.5% in May, while unemployment rate for all other occupations grew from 4.1% in January to 13.5% in May.
The H-1B visa is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations. Indian IT companies like Tata Consultancy Services (TCS) Ltd, Infosys Ltd, and Wipro Ltd are few of the highest users of this visa category.
The new rules allow senior level employees in critical infrastructure sectors including healthcare and information technology, whose roles are vital to the management and success of the business to get the visas. They should be paid at least 15% higher than the wage rate would also be considered, provided it is established that denial of the visa would cause significant financial harm to the employer. The department has issued a set of five guidelines, and applicants must meet at least two out of these five to be considered for a visa.
Healthcare professionals and researchers doing work related to Covid19 or travelling on a request from a US government agency or to satisfy treaty or contractual obligations will also be allowed. This would include people identified by government agencies as performing research, providing IT support or similar, essential to the agency.
It said that Labor Condition Applications (LCAs) approved by the Department of Labor during or after July 2020 are more likely to account for the effects of the COVID-19 pandemic on the U.S. labor market and the petitioner’s business. “Therefore, this indicator is only present for cases with an LCA approved during or after July 2020 as there is an indication that the petitioner still has a need for the H-1B worker,” said the statement. Further, if the applicant is able to perform essential functions remotely outside the US, then this indicator is not present.
