Trump administration unveils new rules that will limit companies from hiring highly skilled foreign workers

Source: Content compiled from Reuters , thank you.

The Trump administration on Tuesday announced a rule that could limit U.S. companies’ hiring of highly skilled foreign workers, particularly in the technology industry, a move officials said was necessary to protect American jobs amid widespread unemployment caused by the coronavirus pandemic.

The rule, issued jointly by the U.S. Department of Labor and the Department of Homeland Security, will significantly increase the minimum wages that companies must pay to employees holding H-1B visas. The rule will also narrow the definition of "specialty occupations" that can apply for H-1B visas.

The new rules, which are set to take effect in early December, are likely to face criticism from industry groups such as the U.S. Chamber of Commerce, which says the H-1B program is necessary because of a shortage of skilled American workers.

More than two-thirds of H-1B visa holders are from India, according to government statistics, and a significant proportion of them are employed by technology companies.

Kenneth Cuccinelli, acting director of the Department of Homeland Security, said in a call with reporters that the new rules focus on denying visas to third-party contractors who export labor to U.S. companies.

He said the contractors are exploiting loopholes in existing regulations to pay H-1B visa holders far less than their American counterparts.

“This encourages businesses to avoid hiring Americans, or even lay off their own qualified, higher-paid American workers, replacing them with cheaper foreign labor,” Cuccinelli said.

In June, U.S. President Trump issued a ban on H-1B workers and some other visa holders entering the United States before the end of the year, citing the economic crisis caused by the epidemic.

The U.S. Chamber of Commerce and other business groups sued the government, saying it created unnecessary barriers for employers.