New Regulations to Restrict H-1B and Work Visa

The U.S. Department of Homeland Security and Department of Labor have announced changes to the H-1B, H-1B1, and E-3 work visa programs along with permanent labor certifications (PERM). These new rules, which will go into effect in 60 days, will increase the prevailing wages employers must pay foreign nationals, narrow the definition of “specialty occupation,” limit the validity of an H-1B visa to one year (instead of three years) for foreign workers placed at third-party worksites, and increase enforcement and site visits on companies at third-party locations.

Under these new regulations employers will be required to offer a job that requires a specific bachelor’s degree(s) and demonstrate a "direct relationship" between the job duties of the position and the Beneficiary's degree. Additionally, salaries for employees on H-1B, H-1B1, and E-3 work visas along with employment-based green cards will dramatically increase from the 17th wage percentile to the 45th wage percentile, increasing thereafter to the 62nd, 78th, and 95th percentiles (up from the current 34th, 50th, and 67th percentiles).

These rule changes are in line with President Trump’s recent executive orders to suspend work visas for certain foreign nationals through 2020 (despite last week’s news preliminarily blocking the visa ban). It is likely, however, that these new regulations will trigger lawsuits when they become effective.

As always, we will continue to monitor the situation. Please feel free to contact us if you have any questions.