If the H-1B visa lottery were to be ended, what impact would it have on your talent needs?

The Trump administration, via the Department of Homeland Security, recently announced plans to initiate a new rule that would end the H-1B visa lottery and replace it with wage-based selection, where the priority would go to the jobs with the highest salaries. As reported by The Mercury News, "Under the proposed rule, when initial H-1B visa applications subject to the annual 85,000 maximum surpass that cap — as has occurred since 2014 — visas would be awarded first to people in the highest of four wage categories, then to those in the third level, on down to the lowest level until all have been given out." 

According to Ron Hira, a Howard University professor who studies the H-1B, this is going to be good for the U.S. economy, as it will improve the quality and skill level of H-1B workers. The argument for the rule is that they feel companies are exploiting the current system to bring in foreign talent at lower wages. At the same time, many fear that the new rule would keep younger foreign workers out and deter international students from coming to the U.S., as it will reduce the number of lower level wage positions. 

Having avoided engaging with Congress, there is also concern that the new rule may also exceed the administration's authority. In fact, Forbes explains that the proposed regulation to eliminate the lottery may violate the statute and is likely illegal.  

It also raises questions of how it will impact international students, information technology professionals, physicians and others with less experience who could now be shut out of obtaining H-1B petitions. The article goes on to say that, "In practice, the proposed regulation may be bad news for employers looking to hire international students in H-1B status, which is typically the only way to employ an international student long-term in the United States."

If companies now can't afford to bring in international students because of the new high salary requirements, and working after graduation becomes more unlikely for international grads, then the fear is that many international students will no longer choose to study in the U.S. Additionally, many companies maintain they still need the program to fill key positions.

Because it’s a proposed rule, DHS will open up a public comment period, during which “interested parties” can submit their opinions.  From where your company sits, how impactful will this be and do you feel like the rule will have it's intended effect or simply put American firms at a disadvantage in the race for key talent?

This all comes after some other recent H-1B changes that you can explore from our previous post: Overhaul to the U.S. H-1B guest worker visa program kicks in