Delay sought in implementation of wage hike for hiring H-1B workers

According to experts, the hike is likely to affect small businesses and startups in the US, which is why they are seeking at least a month’s delay before implementation to share their views

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It is not just Indian talent that may lose out on job opportunities in the US, due to the hike in wages brought about by the US administration, for hiring H-1B visa workers. The startup community in the US is also opposing the hike. The US Small Business Administration (SBA) has sought a delay in the implementation of the salary increment process.

The objective is to use the 30 days to put together their arguments as to why the hike in wages will negatively impact the small businesses, startups and entrepreneurs in the US, who depend on foreign talent, which they are able to hire at low salaries. They feel their performance will be majorly affected if the wages for H-1B visa holders is hiked.

Experts believe that the hike will be a great disadvantage to employers in the US, and will affect them more than it does the H-1B visa holders.

The Interim Final Rule was issued by the US Department of Labor early last month, saying that there will be an increase in salaries offered to H-1B visa holders by up to 50 per cent. In certain cases, the hike would go up to 80 per cent and beyond too.

The idea was to give a push to local recruitment as the hike would make it expensive for US employers to hire foreign labour. They would be forced to hire local talent instead.

However, now SBA is trying to highlight how the Rule will affect the productivity and performance of American startups.