In a relief to Indian IT services companies in the US, they do not need to implement the new rule on H-1B wage hikes for the next one-and-a-half years as the Biden administration has proposed an 18-month delay.
The US Department of Labour, in its latest notification, said it has proposed an 18-month delay in the effective date of a final rule on calculating prevailing wages of certain immigrants and non-immigrant workers.
"Published in January 2021, the final rule affects employers seeking to employ foreign workers on a permanent or temporary basis through certain immigrant visas or through H-1B, H-1B1 and E-3 non-immigrant visas," the Department of Labour said. As per the US Department, the proposed delay will provide the department with sufficient time to consider the rule's "legal and policy issues" thoroughly.
It is expected to issue an upcoming request for "information and gather public comments" on the sources and methods for determining prevailing wage levels. The proposed delay will also give agency officials sufficient time to "compute and validate prevailing wage data", covering specific occupations and geographic areas, complete necessary system modifications and conduct public outreach.
This proposed rule follows an initial 60-day delay announced earlier this month. The Wage Protections for the Temporary and Permanent Employment of Certain Aliens in the United States aims to hike minimum wages of H-1B visa card holders and those waiting for PR (permanent residency) by 23-41 per cent in phases. Nasscom, which is India's tech loggy group, had earlier termed the rule "arbitrary" and "capricious", which could have "repercussions" on the US economy.