H1-B rule changes coming soon, to discourage fraud, improve flexibility, including startup founders

One Thing Today in Tech

In today’s episode H1B visa rules will soon change significantly, but first a few other headlines caught my attention.

Isro, announced last week the successful test of “In-flight Abort Demonstration of Crew Escape System (CES)” at Mach number 1.2 with the space agency’s newly developed Test Vehicle, followed by Crew Module separation & safe recovery. This is in an important milestone in India’s Gaganyaan human space flight effort.

VC firms are doubling down on AI and deep tech. TechCrunch reports today that these are the prevailing themes in the latest early-stage cohort from Peak XV Partners, formerly Sequoia Capital India, the largest India and Southeast Asia-focused VC fund.

One thing today

Big changes are coming to H1B visa rules, that could have significant impact for India’s $245 billion IT services industry.

In a move aimed at enhancing the H-1B specialty occupation worker program, the US Department of Homeland Security (DHS), in conjunction with the US Citizenship and Immigration Services (USCIS), published a Notice of Proposed Rulemaking (NPRM) on Oct. 20, according to a press release on the department’s website.

The proposed rule intends to streamline eligibility requirements, boost program efficiency, provide more benefits and flexibility for both employers and workers, and reinforce integrity measures.

The H-1B program is pivotal for US employers, allowing them to hire foreign workers in specialty occupations, a classification that mandates highly specialized knowledge and a bachelor's degree or higher in a specific field, the press release notes.

It has also been used extensively by India’s IT services providers such as Infosys and Tata Consultancy Services to send software engineers and others to work on client sites.

“DHS continues to develop and implement regulations that increase efficiency and improve processes for employers and workers navigating the immigration system,” US Secretary of Homeland Security, Alejandro N. Mayorkas said in the press release.

One of the central changes proposed in the rule is the alteration of the H-1B registration selection process to reduce the potential for misuse and fraud. Currently, the odds of an individual being selected in the lottery system increase with the number of registrations submitted on their behalf.

The new proposal, however, would change this by ensuring that each unique individual is entered into the selection process only once, regardless of the number of registrations submitted for them. This modification aims to enhance the chances of a legitimate registration being selected while minimizing the advantage of submitting multiple registrations for the same beneficiary.

Important provisions of the proposed rule include the following:

Streamlining Eligibility Requirements: The criteria for specialty occupation positions would be revised to reduce confusion and clarify that a position may encompass a range of degrees as long as there is a direct connection between the required degree field(s) and the position's duties.

Improving Program Efficiency: The rule would codify that adjudicators should generally defer to a prior determination when no underlying facts have changed in a new filing.

Providing Greater Benefits and Flexibilities: Certain exemptions to the H-1B cap would be expanded for non-profit entities, governmental research organizations, and beneficiaries not directly employed by qualifying organizations. Additionally, students on an F-1 visa seeking to change their status to H-1B would receive extended flexibilities. The rule would also introduce new eligibility requirements for rising entrepreneurs.

Strengthening Integrity Measures: The rule would prohibit related entities from submitting multiple registrations for the same beneficiary, thus reducing misuse and fraud in the registration process. USCIS' authority to conduct site visits would be codified, and non-compliance with site visits could result in the denial or revocation of a petition.