Reasons Why US Tech Companies Worried About H-1B Visa

H-1B one of the powerful Visa issued by the United States for Non-immigrants. As per the United States government norms, H-1B visa will be issued to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields such as in architecture, engineering, mathematics, science, and medicine. 

Many Tech companies in the United States hire talented computer systems analysts, application software developers and computer programmers from different countries. For them, H-1B visa is a must. Earlier it was easier to get H-1B visa, but now due to huge demand every year government allow H-1B visa for a limited number of people, and those limited number of people will be chosen via lottery. Annual Lottery will be done to provide H-1B visa for Non-immigrants. In fact, there are a lot of advantages for H-1B visa immigrants. Those who receive H-1B Visa can stay up to six years in the United States without any worries.

Reasons Why US Tech Companies Worried About H-1B Visa

As per the government sources, every year 85,000 new H-1B visas provided for Talented nonimmigrants. To be specific, Most of the Tech Companies in the United States are depended on over these Non-immigrants. These people play a crucial role in the development of their companies. All over, a recent ban on Muslim countries by Donald Trump effected few companies internally including Google and few others.

Reasons Why US Tech Companies Worried About H-1B Visa
Reasons Why US Tech Companies Worried About H-1B Visa

If Donald Trump’s administration lifts H-1B, or reduce the allocation of H-1B visas, then it will become a major problem for every Tech Company in the United States. From now onwards in order to hire foreign employees, US-based tech companies must prove that they indeed tried to hire U.S. workers first and hadn’t displaced any Americans.

If any strict rule comes on H-1B visas, then it will create a huge loss for all tech companies based in the United States. Already a slight fall down in share market noticed at Bombay stock exchange. Companies and even employees worried regarding this H-1B issue.

Tech companies in the United States requesting the government to increase the number of annual visas allotted, but there’s no indication that’s on the agenda. In fact, the number of visas could go down. This became the major fear of US-based Tech Companies. Let’s wait and see what’s gonna happen upcoming days!

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1 COMMENT

  1. Since your site is called “Facts Herald”, I thought you might appreciate some facts.

    While lobbying Congress for more H-1B visas, industry says H-1B workers are “the best and brightest”. Come payday, however, they’re entry-level workers.

    The Government Accountability Office (GAO) put out a report on the H-1B visa that discusses at some length the fact that the vast majority of H-1B workers are hired into entry-level positions. In fact, most are at “Level I”, which is officially defined by the Dept. of Labor as those who have a “basic understanding of duties and perform routine tasks requiring limited judgment”. Moreover, the GAO found that a mere 6% of H-1B workers are at “Level IV”, which is officially defined by the US Dept. of Labor as those who are “fully competent” [1]. This belies the industry lobbyists’ claims that H-1B workers are hired because they’re experts that can’t be found among the U.S. workforce.

    So this means one of two things: either companies are looking for entry-level workers (in which case, their rhetoric about needing “the best and brightest” that can’t be found among the domestic (i.e., U.S.) workforce is meaningless), or they’re looking for more experienced workers but only paying them at the Level I, entry-level pay scale. In my opinion, companies are using the H-1B visa to engage in legalized age discrimination, as the vast majority of H-1B workers are under the age of 35 [2], especially those at the Level I and Level II categories.

    Any way you slice it, it amounts to H-1B visa abuse, all facilitated and with the blessings of the US government.

    The National Association of Colleges and Employers (NACE) has never shown a sharp upward trend of Computer Science U.S. graduate starting salaries, which would indicate a labor shortage (remember – the vast majority of H-1B visas are granted for computer-related positions). In fact, according to their current survey for Fall 2015, starting salaries for CS grads in the US went down by 4% from the prior year. This is particularly interesting in that salaries overall rose 5.2% [3].

    The visa laws need an overhaul so that the visa is only used for it’s stated purpose – to attract (and pay accordingly) TOP talent.

    References:
    [1] GAO-11-26: H-1B VISA PROGRAM – Reforms Are Needed to Minimize the Risks and Costs of Current Program
    [2] Characteristics of H-1B Specialty Occupation Workers Fiscal Year 2014 Annual Report to Congress October 1, 2013 – September 30, 2014
    [3] NACE Fall 2015 Salary Survey, NACE Salary Survey – September 2014 Executive Summary

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