The Trump administration has issued the "Hire American" executive order, proposing stricter standards for the H-1B and other employment-based immigration programs.
The April 18 order comes as part of the new Administration's plan to increase scrutiny of the H-1B program to protect US jobs. Although this order does not have an immediate impact on the current programs, it inaugurates a review process that will likely lead to new rules and policy that will affect US employers and foreign workers for future application processes.
The new order does not provide any specific changes but it instructs the relevant agencies to propose revisions to these employment-based visa programs in efforts to protect the interests of US workers. The order expressly directs the immigration agencies to transition towards a merit-based allocation system, as opposed to the current H-1B cap lottery system. The new rules may establish a more rigorous system where applicants holding advanced degrees will have priority over the rest.
Expected changes include:
- Increase of the H-1B prevailing wage minimums;
- Increase of H-1B filing fees;
- Elimination of the random selection (lottery) system;
- Establishment of a merit-based allocation system; and
- Heightened scrutiny during the Labor Certification Process.
What This Means for Employers
Although the proposed changes will require legislation, this order marks a concrete step towards an overhaul of the H-1B program, potentially affecting all employment-based programs. Legislative reform generally takes months, but several bills are currently in the pipeline, pending Congressional decision. Moreover, agencies can implement guidelines immediately.
Consequently, it is important for employers to be aware of upcoming changes, which will affect their ability to hire foreign workers. Employers should contact their immigration consultants early on to reassess their hiring strategies and keep an updated immigration compliance protocol.
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