By: Global Mobility Solutions

January 21, 2021

Effective March 9, 2021, a new rule will change the selection process for H-1B visa registrations. This rule change will result in challenges to employers’ ability to hire foreign talent. The Department of Homeland Security (DHS) final rule allows the United States Citizenship and Immigration Services (USCIS) to select H-1B visa registrations by the highest prevailing wage level. Ultimately, visa registrations will be chosen for processing based on the highest wage an employer offers.

The H-1B Visa Registrations Rule Regarding Prevailing Wage Levels

According to the DHS, the new rule is in place to incentivize employers in a number of areas. Notably, the rule states that prioritizing by wage level for each cap will incentivize employers to:

  1. Offer higher wages to H-1B employees
  2. Petition for positions that require higher skills
  3. Attract foreign talent that have higher skills

The new rule should help USCIS ensure H-1B cap allocations go to the most highly qualified workers.

Also, the new rule provides a strong disincentive for employers to avoid “abuse” of the system to fill positions that:

  1. Pay workers at low rates
  2. Require less skills to perform

What Does This Mean for Employers?

Employers should expect to face continuing uncertainty and confusion regarding H-1B visa registrations. Litigation against this new rule is likely to occur. However, several factors are combining to make the FY 2022 H-1B visa lottery process particularly challenging:

  1. Timing of the new rule
  2. Expected litigation
  3. Higher wage costs relating to the new rule
  4. End of the current administration
  5. Start of the new administration
  6. Continued impacts relating to the COVID-19 pandemic

What Should Employers do About H-1B Visa Registrations?

Employers should plan to submit documentation that meet the new rule’s requirements. Even if the new rule faces litigation, it is uncertain whether that litigation will be finalized in time to materially impact the FY 2022 H-1B visa registrations process.

Employers should work with a qualified and knowledgeable Relocation Management Company (RMC). RMCs will have experience navigating the visa and immigration processes. As a result, RMCs can help employers through the process with successful results.

Conclusion

Global Mobility Solutions’ team of global relocation experts has helped thousands of our clients successfully submit H-1B visa registrations. Our team can help your company understand how to prepare, register, and submit registrations in the FY 2022 H-1B visa lottery for the greatest chance of successful results.

GMS was the first relocation company to register as a “.com.” The company also created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation® technology platform.

Powered by GMS’ 2020 Mobility Benchmark, the innovative GMS Program/Policy Evaluation (PPE) Tool provides instant relocation policy reviews. It also helps users gain insight into how their company’s relocation program compares to their industry peers.

Contact our experts online to learn more about the H-1B visa registrations rule regarding prevailing wage levels now. Give us a call at 800.617.1904 or 480.922.0700 today.

Request your complimentary Visa Program Assessment

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