Looking Towards the New Year: Possible Impacts of HR 170
In the US House of Representatives, a bill, “Protect and Grow American Jobs Act” (HR 170), proposes new minimum salary standards for H-1B visas. The bill made its way out of the House Judiciary committee and proposed a 50% increase in the minimum annual salary from $60,000 to $90,000 for H-1B dependent employers. According to the Judiciary Committee, the Act attempts to reform H-1B visa regulations for the purpose of protecting American jobs and ending H-1B visa abuse. The bill aims to prevent “H-1B dependent employers from bringing in foreign workers to replace American workers at low salaries that undermine the wages of American workers.” The bill would prohibit H-1B dependent employers from firing American workers for H-1B employee replacements, eliminating existing exceptions for H-1B employees with a master’s degree or higher and a starting salary greater than $60,000. The bill also would increase the “no-layoff” period to effectively prohibit an employer from laying off an American employee if the company employs an equivalently skilled H-1B worker. Additionally, the proposed Act offers exemptions for US worker priority requirements if the company pays the H-1B, at minimum, $135,000 or “the average wage for the occupation in the area of employment, but with a floor of $90,000.” HR 170 would greatly restrict H-1B dependent employers and put a tremendous burden on other companies that need to employ H-1B workers.
Opponents
Although Congress has an interest in ending abuses to the visa program, the bill could potentially inhibit businesses from sponsoring high skilled workers that are not readily available in the US labor force. The National Association for Software and Services Companies (NASSCOM) a prominent voice for H-1B dependent Indian tech industries, claims that the bill will create unfair competition in the IT market and decrease production within many companies. NASSCOM argues that the H-1B program aids in producing STEM professionals for the US market. Therefore, the proposed bill would hinder many high skilled technical professionals from contributing to the US economy. The bill is now up for consideration in the Senate, and will await approval from both houses and the executive.