New Challenge for H-1B Visa Sponsors in the USA

Visa Experts25 Jan, 2021Legal

The Trump administration has introduced a new rule for I.T. services and staffing companies based in the USA that sponsors foreign workers through the H-1B visa and recruits them to work at customer sites. On 14th January, the Department of Homeland Security signed a final rule redefining the critical term ’employee-employer relationship’ under this visa pathway. The next day, the Department of Labour issued a corresponding guidance note. Additionally, customers of companies that depute H-1B workers must also file a Labour Condition Application (LCA) and an H-1B visa application (known as a petition). It will increase the administrative costs and burden on such customers and make them liable for ensuring compliance with working conditions and wages – which is currently only an obligation of the primary employer.