Donald Trump was sworn in as the 47th President of the United States on January 20, 2025. With this significant victory, his administration is all set to introduce new reforms to the H-1B visa process, enhancing its operational efficiency and transparency.
The H-1B visa enables employers to hire highly skilled foreign workers in specialized fields like tech and healthcare to address skill shortages. However, under President Trump’s leadership, new changes will be implemented, and the program will undergo significant changes, including increased restrictions and scrutiny.
This article explores these changes and discusses steps companies can take to stay compliant with the H-1B regulations and mitigate potential risks.
Significance of H-1B Visa Program
The H-1B visa is an important aspect of the U.S. Immigration system as it allows employers to hire well-versed foreign workers temporarily, driving economic growth and innovation.
Initially, with an H-1B visa, foreign workers are allowed to stay in the United States for up to three years and after that, employees may request an extension for up to an additional three years which allows them to stay for a total of 6 years.
H-1B visa serves multiple purposes, including:
- Addressing Skill Gaps: Big industries such as Tech and Healthcare are always looking for skilled workers to enhance business competition, and fuel economic advancement and innovation.
- Boosting Economic Growth: Foreign workers offer their expertise and diverse skills to contribute to the economy, expanding the economic horizon of the nation.
- Encouraging Global Talent: With an H-1B visa, employers can hire foreign workers from a vast global pool that allows them to encourage international talent, creating a welcoming and positive workspace.
- Promoting Diversity: The H-1B visa allows employers to foster a diverse work culture that values and promotes people from different backgrounds and cultures, improving the overall work efficiency and boosting the organization’s reputation.
What Changes Can We Expect Under Trump’s Presidency?
During Trump’s first term, the administration took various steps to reduce the influx of foreign workers, and under his second term, those policies are expected to expand.
Below are some of the key changes businesses should prepare for:
- Reduction in Annual H-1B Visa Cap: Trump administration can reduce the number of annual H-1B visas, meaning employers can file a limited number of petitions each year. This may lead to increased competition among employers, making it difficult for small companies to file an H-1B petition for their employees.
- Enhanced Transparency: To ensure compliance with immigration laws and eliminate the risk of fraudulent activities, stricter reforms such as selecting job applications that align with the job description, and frequent site visits will be implemented.
- Definition of Specialty Occupation: To ensure the hiring of highly qualified workers, the criteria for what qualifies a “specialty occupation” could be narrowed down even further making it difficult for employers to file many petitions.
- Increased Employer fees: Employers must pay a fee to file for an H-1B visa petition; the actual amount may vary depending upon factors such as the organization’s size and employee’s requirements. To promote the hiring of local talent and highly skilled foreign workers, the H-1B visa petition fees may be increased.
- Enforcement of Stricter Wage Requirements: To make sure foreign workers are being paid fairly, stricter wage requirements will be promoted to create a transparent work environment where all employees are compensated equally.
- Prioritizing the U.S. Workforce: During his first term as the President, Trump’s focus was on prioritizing the U.S. workforce and reducing dependency on foreign labor. This was reflected in several of his policies under the “Buy American, Hire American” executive order signed in April 2017. In his second term, these changes may expand, or more such policies that encourage the hiring of local talent may come into action.
Modernization of the H-1B Visa: The Final Rule
Donald Trump’s second term is bringing attention to potential changes that could be implemented to upgrade the current scenario of U.S. immigration and foreign labor. However, we should also acknowledge the recent changes made to the H-1B visa petition effective January 17, 2025, under the previous administration of President Biden.
These changes include:
- Wage-based Selection: H-1B visa petitions will now be given preference according to the wage offered by the employers, which means petitions with a higher wage level will be prioritized.
- Enhanced Specialty Occupation Criteria: The definition of “Specialty occupation” has been reinforced to facilitate the hiring of skilled foreign workers, making it difficult for employers to hire employees whose qualifications don’t align with the job descriptions.
- Longer Cap-Gap for F1 Students: The new rule extends flexibility for F-1 visa students seeking to change their status to H-1B, allowing them to continue working without any disruptions in their lawful authorizations. The final rule extends the cap-gap protection period from October 1 to April 1 for F-1 students changing status to H-1B.
- Revised Cap-Exemption Rules: Non-profit and government research organizations will now be able to hire H-1B workers without the cap. This rule also extends to the exemption to beneficiaries who were not directly employed but spent at least half their time supporting this mission.
- Stronger Compliance Measures: To ensure fair hiring and compliance with immigration laws, USCIS will now have more authority to conduct audits/inspections at worksites, remote locations, and third-party sites. Failure to adhere to these laws will result in serious legal and financial penalties.
- Opportunity for Entrepreneurs: Entrepreneurs can now easily qualify for H-1B visa petitions if they play an important role in their business, this rule will be particularly for startups in the STEM industries.
How Companies Can Adapt to These Changes
With this constant state of turbulence, these changes may seem hard to sail through but with a structured approach, organizations can ensure a smooth transition.
Here are some steps businesses can take to thrive under the new H-1B regulations:
- Stay Updated: Ensure your company is well informed about these policies and any new rules that might be integrated shortly. This will help your team remain compliant and avoid unnecessary delays.
- Enhance Job Descriptions: Refine job descriptions to make sure they properly align with the strict definition of a “specialty occupation” It is necessary for the application to highlight relevant skills, required qualifications, and responsibilities as it will strengthen the application, qualifying for the H-1B visa.
- Offer Competitive Compensation: In anticipation of possible alterations regarding wage-based selection of the H-1B visa applications, employers must make sure that they fairly compensate the employees, which will increase their chances of getting selected for the H-1B lottery.
- Consult Legal Experts: It is important to get the right guidance when dealing with the complexities of the H-1B visa process and that is why consulting with an experienced immigration attorney can help employers figure out these changes smoothly, making sure you stay at the top of policy changes in the visa application process.
- Conduct Regular Audits: By keeping a regular check of employee records, job descriptions, wage information, and other important documentation, employers can identify and address any discrepancies at the earliest, reducing the risks of violations, legal issues, and penalties.
- Maintain Good Relationships with H-1B Employees: Given the increased probability of audits, it is important to foster a culture of open communication that will allow employers and employees to work together as a team and cooperate. A good working relationship also helps in addressing concerns early and working through issues such as visa delays and renewals.
Summary
Donald Trump began his second term on January 20, 2025, following a significant win in the 2024 U.S. elections. His administration plans to implement reforms to the H-1B visa process, aiming to enhance transparency and reduce fraud. The H-1B visa allows employers to temporarily hire skilled foreign workers, supporting economic growth and promoting diversity.
Under Trump’s leadership, changes such as reducing the annual H-1B visa cap, increasing employer fees, and introducing stricter rules on transparency and specialty occupations may be introduced. These reforms aim to reduce reliance on foreign labor and prioritize local talent.
H-1B employers can adapt by staying informed, aligning job descriptions with roles, offering competitive compensation, and conducting regular audits.
It’s also important to note changes implemented on January 17, 2025, under President Biden’s administration. The H-1B visa modernization focuses on wage-based H-1B visa selection, enhanced specialty occupation criteria, extended cap-gap benefits for F-1 students, revised cap-exemption rules, and provisions for entrepreneurs to apply for H-1B visas.
By staying updated and following a structured approach, employers can successfully fulfill the H-1B petition process.
OnBlick will continue to monitor the changes to the H-1B program and offer more details as they become available. If you wish to know more about how OnBlick streamlines your H-1B case management, book a quick demo today.