HomeIndian AmericanMandatory wages raised for H1B workers who are mostly Asian

Mandatory wages raised for H1B workers who are mostly Asian

from Px Fuel

The Department of Labor this week announced new wage laws that will raise the wages of many H1B workers, a move some fear could reduce the number of immigrants to the US, reports India West.

Under the regulations, wages for entry level workers making $75,000- $80,000 a year would increase to $120,000.

Many technology firms use H1B visas to close the talent pool in the US. Most of those workers come from India. During the 15 years ending in 2015, h1b.IO reports half the workers came from India. China came in a distant second at just under 10%. The Philippines and South Korea each accounted for about 3% of the H1B visa workforce.

The Mercury News reported the regulations are a result of a successful lawsuit filed by the Bay Area Council against the Trump Administration.

The Trump administration had hoped to raise the wages for H1B visa holders even higher to protect American workers from cheaper foreign labor. The pro business Bay Area Council sued saying raising wages even higher would destroy the economy and post-pandemic recovery.

“The U.S. Department of Labor is taking these steps to strengthen wage protections, address abuses in visa programs, and protect American workers from being undercut by cheaper foreign labor,” Labor Secretary Eugene Scalia said in a statement. “These changes help ensure that these important foreign worker programs function as Congress intended, while securing American workers’ opportunities for stable, good-paying jobs.”

Immigration attorney Cyrus Mehta told India West that the wage hike is an  “an unjustified entry-level wage.”

The Bay Area Economic Council has been critical of President Trump.

“It’s pretty blatant what the Trump administration has attempted to do. For the past four years, they have been trying to reduce immigration in all forms.”

The rules are scheduled to take effect 60 days after they are entered into the federal registry. It’s unclear if the Biden administration will overturn the rules.

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