US announces H-1B visa overhaul: 4 key points for applicants here

The Department of Homeland Security (DHS) has announced a final rule to modernise the H-1B visa programme, enabling US companies to fill job vacancies in critical fields more effectively. The new rule, which is slated to take effect in the new year, will streamline the approval process, provide greater flexibility for employers to retain talented workers, and improve the integrity and oversight of the programme.

The move holds special significance for Indians because people from India have been getting the largest share in the H-1B visa category.

In 2023, Indians made up 72.3% of the 386,000 H-1B visas issued.

The H-1B visa update would also benefit Indian students on F-1 visas in the US as the new rules seek to help them transition to jobs.

The H-1B visa programme, introduced by Congress in 1990, is a pathway for professionals and international students to work in the United States.

US companies depend on H-1B visas to hire hundreds of thousands of employees each year from countries like India and China.

The annual cap for H-1B visas is set at 85,000, with 65,000 for the regular cap and 20,000 for US advanced degree or master’s degree holders.

However, many non-profits and governmental research organisations are exempt from this cap.

Here’s what you need to know about the upcoming changes.

1. Effective date – The new rules for the H-1B visa will take effect on January 17, 2025, just three days before US President-elect Donald Trump takes office on January 20, 2025. Applicants will be required to use the new edition of Form I-129 for non-immigrant workers to submit their H-1B petitions.

2. Greater flexibility for employers and workers – The updated rule provides more options for US companies to hire and retain top global talent. It extends certain flexibilities for F-1 visa students seeking to change their status to H-1B, avoiding disruptions in lawful status and employment authorisation. This is important because the US is a preferred destination for education, especially higher studies, for students from India.

3. Enhanced integrity and prevention of abuse – The rule strengthens the H-1B visa programme oversight to prevent abuse. It grants US Citizenship and Immigration Services (USCIS) greater authority to conduct inspections and impose penalties on non-compliant employers. Employers must demonstrate that they have a bona fide job in a speciality occupation by the worker’s start date, with consistent documentation to support their Labour Condition Application (LCA).

4. Modernised Definition of Speciality Occupations – The new rule aims to provide greater flexibility by modernising the definition and criteria for speciality occupation positions. It also clarifies eligibility for non-profit and governmental research organisations that are exempt from the annual statutory limit on H-1B visas. The H-1B non-immigrant visa programme allows US employers to temporarily employ foreign workers in speciality occupations requiring highly specialised knowledge and a bachelor’s or higher degree in the specific speciality or its equivalent.

These changes are expected to help US employers hire the skilled workers they need to grow and innovate while enhancing the integrity of the H-1B programme.

The new rule will ensure that the programme remains effective in addressing labour needs in critical fields and boosting the US economy. It will also bring cheer for highly skilled Indian workers and students looking to work in the US.