US H-1B Visa Shift to Wage-Based Selection Alarms Indian Tech Workers

The final rule, published in the Federal Register, amends existing regulations to allow the selection of "unique beneficiaries toward the H-1B annual numerical limitations and the advanced degree exemption in a weighted manner based on the wage level listed in each H-1B registration that corresponds to the prospective petitioner's proffered wage."

For Indian nationals-who account for a large share of H-1B approvals and dominate the long employment-based green card backlog-the shift is being closely watched as a potential restructuring of how foreign talent enters the US technology workforce.

DHS said the rule is intended to address "shortages in positions requiring highly skilled or highly educated workers while protecting the wages, working conditions, and job opportunities of US workers," adding that it seeks to prevent what it described as the "continued abuse of the H-1B program to displace and otherwise harm US workers."

Public comments submitted during the rulemaking process highlighted concerns from employers, startups and academic institutions that H-1B professionals "drive innovation, productivity growth, and entrepreneurship," and that international students contribute significantly to economic growth. Several commenters warned that limiting access to global talent could undermine startups and small businesses that "cannot compete with the salaries of larger, established companies."

One comment noted that startups rely on the H-1B program to attract workers with "niche expertise," and argued that making the program "more expensive and difficult to use" would "limit the growth of US tech innovation and global leadership."

DHS rejected those claims. "Rather than limiting access to international talent, 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 said in its response.

The agency cited data and studies questioning the existence of a STEM labor shortage, pointing to higher unemployment among recent US graduates in computer science and related fields, as well as flat or declining real wages in computer and mathematical occupations over recent years.

"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 department said, adding that employers could instead be incentivized to hire qualified US workers who are "currently unemployed or underemployed."

However, many comments said that the rule introduces new uncertainty into an already complex system. Many arrive in the US as students, transition to Optional Practical Training, and then rely on H-1B sponsorship to remain employed while waiting years-often decades-for permanent residency due to per-country green card caps.

Indian Americans, as reflected in the comment sections, said the wage-weighted selection could favor large firms with deeper pockets, while disadvantaging early-career professionals, startups, and research institutions where many Indian nationals begin their US careers.

The final rule also addresses concerns about "process integrity," including potential employer wage manipulation, inconsistencies between registrations and petitions, and multiple registrations by related entities. DHS said the amendments were carefully drafted to provide a clear legal standard and minimize litigation.

The department determined that the rule complies with Executive Order 12988 on civil justice reform and does not trigger additional environmental or tribal consultation requirements.

Indian Americans, many of whom are US citizens with family members on work visas, say the changes could have ripple effects beyond the workplace, influencing family stability, home ownership, and long-term settlement decisions, as reflected in the comments.

- IANS