New US H-1B ‘wage-based’ selection rule alarms Indian tech workers and diaspora

Washington: A significant overhaul of the US H-1B visa selection process has sparked anxiety among Indian technology professionals and their families. The Department of Homeland Security (DHS) has formally notified that future H-1B cap selections will be weighted based on wage levels, moving away from the previous random lottery system.

The final rule, published in the Federal Register, amends regulations to prioritize the selection of beneficiaries based on higher offered wages. This shift is designed to favor higher-paid roles, a move DHS argues will address labor shortages for highly skilled positions while protecting the wages and job opportunities of US workers.

Indian nationals, who comprise the largest share of H-1B approvals and face a massive backlog for employment-based green cards, view this shift as a potential restructuring of their entry into the US workforce.

During the public comment period, concerns were raised by startups, academic institutions, and employers who warned that the rule favors large corporations with deep pockets. Critics argued that small businesses and startups often rely on H-1B professionals for niche expertise but cannot compete with the salary scales of tech giants. One comment noted that making the program “more expensive and difficult to use” would “limit the growth of US tech innovation.”

Indian Americans also expressed fear that the wage-weighted system would disadvantage early-career professionals and researchers, common entry points for many Indian nationals arriving as students. Many in the diaspora, including US citizens with family on work visas, worry the changes will disrupt family stability and long-term settlement plans.

The DHS rejected claims that the rule would stifle innovation. “DHS believes that this rule will facilitate employers of all types and sizes to attract and retain highly skilled and highly paid aliens,” the department stated.

Citing data on higher unemployment among recent US graduates in computer science and stagnant wages in mathematical occupations, the DHS maintained that the rule intends to stop the continued abuse of the H-1B program to displace and otherwise harm US workers.

“To the extent that this rule will disincentivize US companies to hire fewer low-skilled, low-wage foreign STEM workers, DHS views this as an overall benefit to US workers,” the agency added, suggesting employers should instead hire unemployed or underemployed qualified US workers.

The final rule also includes provisions to improve process integrity, aiming to curb wage manipulation and multiple registrations by related entities.

(Inputs from IANS)