Summary of the new H-1B executive order.
First understand what the Buy American and Hire American or what we call as the new H-1B executive order. Below is the summary of the H-1B executive order .
- “Buy American” means provide a preference for, the purchase or acquisition of all kinds of goods, services, products, or materials produced or originate in the United States.
- “Petition beneficiaries” mean all aliens who are petitioned by the employer for permanent or temporary work authorization visas like H-1B.
- Hire American. means In order to create higher wages and employment rates for workers in the United States, and to protect their economic interests, it shall be the policy of the executive branch to rigorously enforce and administer the laws governing entry into the United States of workers from abroad.
- The new H-1B executive order states that all heads of departments will monitor and enforce buy American within 150 days of the order being signed. Meaning all concerned government departments must assess and enforce “BUY AMERICAN, HIRE AMERICAN” goods and services and evaluate what impact it has on economy and domestic jobs. This includes but is not limited to all manufacturing and industrial goods like metals, building materials, raw materials for clothing, food and energy production. In addition, service sectors like Banking and IT. They should also evaluate all trade agreements like free trade, WTO, transatlantic and pacific partnerships
- Within 60 days of the order, all heads of departments in labor, commerce and economics branches of the government should submit policies and procedures that direct agencies on how to conduct the above-mentioned evaluation.
- All department heads should propose new rules and issue new guidance, to protect the interests of United States workers by prevention of fraud or abuse of working visas. In order to promote the proper functioning of the H-1B visa program, suggest reforms to help ensure that H-1B visas are awarded to the most-skilled or highest-paid petition beneficiaries.
How does this impact you?
- What everyone needs to understand is that order’s like these take a long time to be executed and they have many legal constraints so do not be afraid or don’t be misinformed. Many websites use this to drive traffic and make money.
- There is atleast 150 days between executing this order and it being accessed and implemented. Though the order itself is valid from today DHS is not going to come up with policies overnight. It will take time.
- Even if policies come into picture there may be congress votes and like the travel ban order a judge might strike it down citing some law in nook and cranny of the penal code or constitution
- The order is not going to generate jobs, all it does is ask for the impact of what will happen if this is implemented a mere assessment
- This impact is relative. The main motive of the executive order is to prevent fraud and abuse that was prevalent in the previous decade. If you were involved in any of the above then you are in for trouble. Meaning enforce existing rules
- The second important point established in the executive order is to eliminate lottery. Yes! you heard it. The order clearly states that DHS needs to come up with policies that eliminate lottery and give visa’s based on merit and pay scale (Truly this is what H1B was established for specialized skill worker visa)
- Possible increase in visa fees
- Enforce regulations to pay higher salary for H-1B visa holder (This is a good thing)
- All the above regulations are advantageous if you are a master’s student graduating from united states.
- You will be affected more if you work for IT companies
- Like Infosys, TCS, CTS because they pay low wages
- They submit lots of applications and get the bulk of H-1B.
What does the executive order not do
- Makes no changes to current Fiscal year’s H-1B
- Does not make changes to the current cap count of 65000+20000 visas
- Does not mention anything about H4 EADs or eliminating H-1B visa or