U.S. tightens H-1B approval process, IT firms worried

U.S. tightens H-1B approval process, IT firms worried

Context:

The U.S. government has announced fresh measures to tighten the scrutiny of H-1B visa petitions

Details:

• The new visa policy makes the procedure of issuing H-1B visas to those to be employed at one or more third-party worksites very tough
• The companies filing H-1B petitions for their employees will have to associate a particular project to the individual visa, which could be approved only for the duration of the project
• In order for an H-1B petition involving a third-party worksite to be approved, the petitioner must show by a preponderance of evidence the beneficiary will be employed in a speciality occupation and the employer will maintain an employer-employee relationship with the beneficiary for the duration of the requested validity period.
• The new policy empowers the US Citizenship and Immigration Services (USCIS) to issue H-1B visas to an employee for only the period he/she has work at a third-party worksite.
• Currently, H-1B visas are issued for three years at a time.

Impact on Indians and Indian IT Companies

• Indians and Indian IT companies will feel the impact the most because they are the biggest users of this visa.
• The shorter durations may even make the transition from H-1B to a Green Card next to impossible.
• There will be a huge impact on the Indian IT services providers that place employees with H-1B visas at American companies that contract them, by imposing more paperwork and processing hurdles.

Significance of the new measures:

The measures are intended to bring the client-vendor -employee relations in business models based on bringing high skilled H-1B workers to America under closer scrutiny.