Trump signs a new executive order against hiring H1B visa-holders

Trump signs an executive order against hiring H1B visa-holders. This new executive order prevents the hiring of these H1B visa holders for federal contracts.

Trump signs a new executive order against hiring H1B visa-holders

This is a huge blow for candidates, especially H1B visa holders and federal agencies. This restricts federal agencies in contracting or sub-contracting the H1B visa holders.

Earlier, a month before Trump signs an order for the restriction of issuing new H1B visas. This move will be in effect until the end of 2020. Trump believes that this order will protect the US workers to get jobs

Several IT companies depend on this visa to hire candidates from around the world, especially India and China. Trump also says that this decision will stop the companies from firing hard-working Americans in favor of foreign candidates.

This new executive order lets the federal agencies have an internal check to make sure if they are in compliance with the new rules. This enables federal agencies to only hire US nationals for these jobs

Trump also says that this move will encourage the merit-based immigration system. This move will also bring highly skilled workers from around the world to generate jobs in the USA and not replace Americans at their jobs

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Which IT firm has the highest number of H1B employees?

Recently, US President Donal Trump announced a ban on H1B visas and green cards, until the end of this year. This led to companies looking to hire local talent. Let’s see which IT firm has the highest number of H1B employees

Which IT firm has the highest number of H1B employees?

Currently, there are 76,649 Indian employees working in IT firms. This includes TCS, Infosys, Wipro, Cognizant, HCL, etc.

The visa ban will not affect the current visa holders but it might lead to an increase in the rejection of the renewal rate. In 2016, the rejection rate is around 4%. It increased to 21% in 2021

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TCS is the largest holder of total employees compared to other Indian IT companies. The overall count is 54,874. Of the 40% are on visas and rest are local talent. In the visas segment, 90% are under H1B visas and rest are under L1 visas

Infosys has an overall strength of 36,228 employees working for them in the USA. Out of these, 21,737 are local staff. Just like TCS, Infosys also has 40% of the employees under visa

Cognizant also depends highly on the H1B visas. 50% of its workforce works under H1B visas. Of them, 90% are of H1B visa candidates and the rest are of L1 visas

Meanwhile, Wipro and HCL are less dependent on the visas. Only 35% of its staff work with visas. Of them, 90% are working under H1B visas and rest are L1 visa candidates.

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Prioritizing American Workers is the new agenda of the bill being passed in the US Congress for H1B visas

In US Congress, a bill has been passed to introduce reforms in the H1B and L1B visas. The reforms are made during this crisis period in order to prevent the replacement of US workers. The main idea of these reforms is to give preference to the US-educated applicants

The Democratic Representative, Mr.Khanna who is of Indian descent has said that they want to make sure that talent will come to the USA and also to make sure that it is being done with proper compensation. They also want to protect all the workers from being exploited.

The latest bill was introduced in both Senate and House of Representatives by a group of seven legislators from both parties. This comes as an amendment to the Immigration and Naturalisation Act which comes during the unemployment rate in the country is at a record high of 23% with around 39 million people are jobless in the country.

Although, the chance of this bill passing is very low due to the current congressional session, which has lots of limitations related to the corona virus. One of the most important elements of the bill is that it prohibits the explicit replacement of the American workers with the holders of H1B or L1 visas. The agenda is also to make sure that their working conditions are not adversely affected.

For the candidates who move to the USA temporarily, the H1B and L-1 visas are issued. The Democrat Representative, Mr.Pallone had said that this amendment would require a good effort to recruit American individuals and also to make sure that foreign workers are not exploited

One other key element of the bill is to give priority to the individuals who completed their education in the USA, for H1B visas. This bill will stop companies from having more than half of the workforce with H1B visa holders. The companies would also be controlled to have H1B or L-1 visa employees to receive training in the USA and send back home to do the same type of work.

However, all the sponsors have acknowledged the impact of foreign individuals in building up Silicon Valley. Mr.Khanna said that immigrants come to the USA with innovative ideas that transform the world. In order to protect their creativity and stop exploiting their efforts these efforts are necessary.

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Several tech firms like Google, Apple in the US are using the H1B visa to pay the low wages to migrant workers

A report in the United States claims that several companies in the country like Google, Apple, Microsoft, use the H1B visa program to pay the migrant workers well below the average market wages.

The report that is released by the Economic Policy Institute claims that several H1B visa employers which are in top-30 such as Google, Facebook, Microsoft, Amazon, are taking advantage of this program and are paying a less wage, lower than the average pay scale. This report is written by Daniel Costa and Ron Hira and titled ‘H1B visas and prevailing wage levels’.

It also says that around 60% of H1B visa positions certified by the US DOL(Department of Labor) are assigned with minimum wage levels. The report also claims that even though the H1B visa allows this, DOL has the authority to modify it and is not changing it.

In the 2019 visa program, around 53,000 employees are availing the H1B visas, while the top 30 H1B availing companies account for 389,000 H1B petitions. Also, half of the H1B employers are currently using an outsourcing business model in which they provide the staff to third party clients instead of employing the staff in their offices.

H1B is a non-immigrant temporary work visa on which the US companies can hire college graduates from across different countries, including fashion models. According to a survey, around 500,000 immigrant workers are currently employed in the USA under an H1B visa.

The report also claims that the employers who employ the H1B visa employees in their own offices, rather than to a third-party client, are being assigned with Level-1 and Level-2 which has the lowest wage levels in the fiscal year 2019. This list consists of big firms like Qualcomm, Google, Facebook, etc.

Also, these firms which hire the employees directly, are also hiring them on a contract basis via outsourcing firms. Here is a typical example of how these firms assign various levels to H1B employees. Microsft has assigned 35% into level-1(lowest), 42% into level-2. These two levels account for 77% of the employees. Microsoft has categorized 18% to level-3 wage(median level) and only just 3% to level-4, which is above the average base pay level. Amazon also does similar categorization, with 47% of its H1B employees to level-1, 36% to level-2. Apple, Google, Facebook also follows the same trend but slightly better.

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Around 2,00,000 H1B visa workers may lose their legal status by June

Several Indians who are staying in the USA on an H1B visa, might land in trouble and lose their legal status by June, due to the coronavirus epidemic. One such story is about a couple staying in the USA on an H1B visa. Manasi Vasvada is doing dental practice in Passaic Country, New Jersey for the last two years. But recently when the corona has hit the USA, it is closed since mid-March. She is on an unpaid leave of absence since then. She only has three weeks until she loses her legal status to stay in the country.

Her husband is also a dentist with an H1B visa that expires in June. The H1B visa is given to people with special skills and can only stay in the country for as long as 60 days without being paid. The couple is now in constant fear due to the current situation in the USA.

There might come a situation when such people with visas expiring cannot stay in a foreign country but also cannot come to their homeland due to the closing of the international borders indefinitely. The above-mentioned couple also faces the same situation. Also they have a student loan $520,000 from the advanced dental degrees that they completed in the US universities. Without receiving any kind of salary, they cannot afford to clear their loans. They are struck in a deadlock where they do not know how they will come out of this situation. They are facing constant fear, pressure, etc.

There are around 250,000 guest workers in the USA who face the same situation as the couple. Around 200,000 members are on an H1B visa, according to an immigration analyst. He also said several other people who are also not seeking the residential status might be sent back home.

The situation has become worst in the last few months, as several Americans lose their jobs. But the H1B visa holders might land in trouble which these Americans cant. Reducing the wages, and asking them to work from home might alnd these H1B visa holders in trouble. Even if these H1B visa holders do not lsoe the jobs, they might face the same situation while renewing their visas.

Doug Rand, who worked under Obama in technology and immigration department had said that this crisis in visas is a catastrophe at the human level and economic level. These H1B visa holders might have their entire families dependent on them to stay in the country, especially children who spent their whole life in the country.

TechNet, a lobbying group whose members include Amazon, Apple, Facebook, Microsoft, Google, had sent a letter to State and Homeland security departments on April 17 had formed a coalition of trade groups calling for relief of foreign-born workers. As part of the letter, they requested a delay in work authorization expiration until at least Sept 10.

The government has extended the deadline for tax filing. Several experts feel that the same thing could be applied for visas as well. But Trump’s administration did not give any kind of statement on this. But the government is looking to provide some kind of support for these kinds of people.

The number of people who are applying for non-immigrant visas has declined since the past years. In 2019, it is 8.7 million to 10.9 million in 2015. A unit of the Department of Homeland Security hasย been suspended since March 18 and wonโ€™t resume until June 4 at the earliest, a 78-day gap in service.

Recently Trump had also tweeted that there will be a temporary ban on all the immigration activities to protect American jobs. The very next day he passed an order to block people from entering the country from receiving green cards for 60 days. This has caused disruptions to the foreign-born workers.

Immediately after Trump announced this, several companies are looking to move jobs away from the USA. One such company is Duolingo. The CEO of Duolingo has tweeted that if this is the situation, they might look to move the jobs to a foreign land. Duolingo is planning to hire an employee who was asked to leave by another company. The worker is on an O-1 visa which is for individuals with extraordinary capabilities. Now with these restrictions in place, the workers have to wait for 6-9 months for his work and visa authorization.

The companies are facing the hardest decisions. Some are choosing to fire foreign employees whose visas require them to be paid. Others are keeping H-1B workers on staff to maintain their legal status while firing U.S. workers. There is a risk involved in the above approaches because the companies who treat workers differently based on their immigration status expose themselves to potential discrimination lawsuits. A stable future for some workers is looking like a distant dream.

One more example is that a person named Shawn Noronha, a 23-year-old Australian living in San Francisco. In January, he was removed from his job at a fintech startup. He found a new position at a startup that is willing to sponsor his visa. Covid-19 hit before he could get to an Australian consulate. While he changed his visa to a tourist visa, he had very few months left before moving away from the country. All his savings are currently being used up. He is also stuck up in the vicious deadlock wither to continue to stay in the country and persuade his American dream or leave the country and return back to his homeland.

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Why could Indians already residing in the US be safe even after the temporary suspension of immigration

Recently, US President Donald Trump has announced the temporary suspension of all the immigration activities to the country. Experts say that this may not affect the Indians already residing in the country. They also said that this move could make the US less attractive to the students who want to go there and build their careers.

The tweet of Donald Trump which says that the blocking of immigration activities is imminent has created confusion among students, and normal people who are awaiting their residency, student, and work visas. However, the US administrative office did not provide further details on this.

According to the US Citizenship and Immigration Services(USCIS), around 27,000 Indians are waiting for their family-sponsored green cards. This is the same agency that administers the visas.

Managing attorney at, Mr. Khanna has said that this is not the first time Trump is trying to suspend the immigration. His idea is to protect the people of the country and the workforce in the country, but cannot affect people from other countries who are already residing in the USA.

Legal experts are predicting that this decision by Trump could be challenged in the court. New-York based immigration lawyer Cyrus D.Mehta has said that this decision by Trump could be faced with multiple lawsuits.

Previously, Trump has come to power by echoing the ani immigration policies and is now seeking re-election in November. So far, under his reign, the US has seen an increase in the economy and employment until corona hit the US. Since then, groups like US Tech workers have asked Trump to suspend immigration and block foreign talent.

Many of the experts feel that this decision could rebound on itself against the USA and no longer the US universities will be attractive to the Indian students. Indian students contribute a lot to the US economy in terms of university fees, etc.

In the latest reports, Indians account for 60% of H1B visas issued by the USA, and experts say that if this decision comes into the act, then the Indian IT companies are the ones that are going to affect the most.

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All the H1B visa holders requested to extend their stay from 60 days to 180 days in the country. Petition raised.

H1B Visa holders in the USA have requested the Trump administration to prolong the stay in the country from 60 to 180 days. Out the all the H1B visa holders, the majority of them are Indians. Most of them have already lost jobs due to the widespread of coronavirus.

The H1B Visa is a non-immigrant visa which allows the companies to employ foreign individuals in occupations that require the theoretical or technical experience. This visa is very crucial for companies. Many of the companies depend on these to hire thousands of candidates from countries like India and China.

According to the current rules, the individual has to leave the country with his family, within 60 days of losing the job. Many Economic experts feel this kind of massive layoffs will greatly affect the economy of the country.

As per March 21, around 3.3 million individuals have claimed jobless in the country. Even the peak of coronavirus is around 2 weeks away, already millions lost their job. Around 47 million employees have registered as jobless till now. The holders of H1B Visas are not eligible for unemployment benefits and social benefits.

In most organizations, these H1B visa holders are already fired or on the verge of being fired.

Due to this situation, all the H1B visa holders have started a campaign on the White House Website to extend their stay in the country. This petition has currently over 20,000 signatures. It requires a total of 1,00,000 signatures in order to get a response from the White House.

Even if the USA wants them to return their homeland, most of the countries have already set up travel bans to stop any individual from entering the country until this virus situation comes under control.

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One-fifth of the H1B Visa applicants are denied Visa in 2019. Indian IT firms suffered the most

With the help of the H1B visa, US companies can employ foreign workers in special occupations that require technical or theoretical experience. But in 2019, among all the applicants for the H1B visa, one-fifth of the applicants were denied by the USA. This denial has affected Indian companies like TCS, Infosys the most, in comparison to American firms.

Several tech companies depend on the H1B visa to hire employees from various countries like China, India, etc. The denial rate in 2018 was 24% overall and it has slightly dropped down to 21% in 2019. The National Foundation for American Policy has said that the rejection rate is higher for Indian companies like Wipro, TCS, Infosys but lower for American companies.

The rejection rate for TCS and Infosys is 31% and 35% respectively in 2019. It was 47% for Wipro, which is the highest for any Indian company and 37% for TechMahindra.

But on the other side, the rejection rate for the H1B visa for Amazon and Google is just 4%. For Microsoft, it’s 6%, while Facebook and Walmart face a 3% rejection rate.

In 2020, Trump’s office is set to make new changes in the H1B visa policy which will make it difficult for US companies to hire highly-skilled foreign candidates. The rejection rate shared by the top seven Indian companies is down by 64% between 2015 and 2019.

This increase in rejection rate is due to US firms recruiting local talent rather than depending on the foreign candidates to fill the existing openings. President Trump has said that the IT companies are abusing the work visa in favor of foreign candidates.

A few years back Trump issued an order “Buy American and Hire American” in a bid to increase employment in the country and create more jobs locally.

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