Prez Biden freezes new H1B visa rules, rejects some
Immediately after taking oath on 20 January 2021, US President Joe Biden has put on hold all modifications to H1-B visa rules introduced by the outgoing Donald Trump administration. The proposed rule changes to the employer-employee relationship will no longer be valid as it has not been published in the Federal Register. The Federal Register contains US government agency rules, proposed rules, and public notices. The modification, proposed by the outgoing Trump, was introduced just a week before demoting office. Proposed change imposed strict conditions on employees placed at third-party locations and called for the end client to also be responsible for the employee.This would have made it more expensive for services companies to place employees at client sites because employees would have had to be paid at the prevailing wage rates at client organisations. However, recent changes introduced by Trump such as higher wage requirements may not be reversed. The Biden administration has expressed support in overhauling the H-1B program and making it a wage-tiered system. Earlier this month, a final rule calling for higher wage levels was published, which makes it harder for small companies and start-ups to hire H-1B workers. This is also applicable to employees being sponsored by their employer for a green card. Services companies will either have to absorb the higher wages or pass it on to clients, both of which could have a business impact. The White House has frozen for 60 days till March 21st any rules that have been issued, but not implemented. This will allow the new Biden administration to review them.
Immediately after taking oath on 20 January 2021, US President Joe Biden has put on hold all modifications to H1-B visa rules introduced by the outgoing Donald Trump administration. The proposed rule changes to the employer-employee relationship will no longer be valid as it has not been published in the Federal Register. The Federal Register contains US government agency rules, proposed rules, and public notices. The modification, proposed by the outgoing Trump, was introduced just a week before demoting office. Proposed change imposed strict conditions on employees placed at third-party locations and called for the end client to also be responsible for the employee.This would have made it more expensive for services companies to place employees at client sites because employees would have had to be paid at the prevailing wage rates at client organisations. However, recent changes introduced by Trump such as higher wage requirements may not be reversed. The Biden administration has expressed support in overhauling the H-1B program and making it a wage-tiered system. Earlier this month, a final rule calling for higher wage levels was published, which makes it harder for small companies and start-ups to hire H-1B workers. This is also applicable to employees being sponsored by their employer for a green card. Services companies will either have to absorb the higher wages or pass it on to clients, both of which could have a business impact. The White House has frozen for 60 days till March 21st any rules that have been issued, but not implemented. This will allow the new Biden administration to review them.
