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The H-1B visa, most sought-after among Indian IT professionals, is a non-immigrant visa that allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise. If finalised as proposed, US Citizenship and Immigration Services would first select registrations (or petitions, if the registration process is suspended) generally based on the highest Occupational Employment Statistics prevailing wage level that the offered wage equals or exceeds for the relevant Standard Occupational Classification code and areas of intended employment.

“With this proposed rule, the Trump administration is continuing to deliver on its promise to protect the American worker while strengthening the economy. The H-1B programme is often exploited and abused by U.S. employers, and their U.S. clients, primarily seeking to hire foreign workers and pay lower wages,” said Acting DHS Deputy Secretary Ken Cuccinelli.

US President Donald Trump, keen to regulate the country's immigration policies, on June 22, signed the executive order temporarily banning issuing fresh H-1B and L-1 visas till December 31. Reforming America's immigration regime is a major election promise of the Republican leader under his America First policy. “The current use of random selection to allocate H-1B visas makes it harder for businesses to plan their hiring, fails to leverage the H-1B programme to truly compete for the world's best and brightest, and hurts American workers by bringing in relatively lower-paid foreign labour at the expense of the American workforce,” Cuccinelli said.

According to the federal notification, prioritising wage levels in the registration selection process incentivises employers to offer higher wages, or to petition for positions requiring higher skills that commensurate with higher wage levels, to increase the likelihood of selection for an eventual petition. Similarly, it disincentives abuse of the H-1B programme to fill lower-paid, lower-skilled positions, which is a significant problem under the present selection system. With limited exceptions, H-1B petitioners are not required to demonstrate a labour shortage as a prerequisite for obtaining H-1B workers, it said.