World News – CA – Indian tech firms benefit from US court ruling on controversial Trump rules

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Bibhu Ranjan Mishra |
Bengaluru
Last updated on 2. December 2020 at 10:40 pm IST

As a great relief to global corporations, especially tech firms that employ a large workforce in the U.S., a federal judge in California on Wednesday threw down two of the latest Trump administration regulations that drastically cut visas for skilled foreign workers each year shall be. The verdict is likely to be in the export-oriented Indian IT services industry, which is highly dependent on skilled workers from offshore locations including India to manage its software deployment work in the US, as well as local American companies that rely heavily on global tech workers are, benefit.

« This is a very good development for Indian IT companies that have suffered from the huge increases in applicable wages for H-1B employees and the business cuts associated with Covid, » said Poorvi Chothani, founder and managing partner at LawQuest, a Immigration and Employment Company Law Firm.

In October, the US administration under President Donald Trump introduced two separate guidelines, including tightening the eligibility criteria for foreign workers to apply for nonimmigrant visas and raising the minimum wages for foreign workers with highly qualified work visas. While the Department of Labor’s salary requirements went into effect as soon as they were published in October, the new eligibility criteria introduced by the Department of Homeland Security (DHS) should take effect in December.

« The ruling also prevents the DHS from imposing stricter definitions in the H-1B classification and strict closure requirements, which will be released on Jan.. It should come into force on December 31, 2020, « added Chothani.

In his ruling, US District Judge Jeffrey White stated that the unemployment crisis caused by the coronavirus pandemic was not a « good reason » for the US. Department of Homeland Security and Department of Labor for disregarding proper regulatory process in issuing the two directives. « The Covid-19 pandemic is an event that is beyond the control of the defendants, but it was within the control of the defendants before they take action, » the judge wrote. document. write («  »); googletag. cmd. push (function () {googletag. defineOutOfPageSlot (‘/ 6516239 / outofpage_1x1_desktop’, ‘div-gpt-ad-1490771277198-0’). addService (googletag. pubads ()); googletag. Pubads (). enableSyncRendering (); googletag. enableServices ();});

The Indian IT industry association Nasscom has also welcomed the move, stating that the new rules have been supported by laws or procedures. “We applaud the court rulings that clearly recognize the importance of high quality visa programs to the United States. and that the previously issued IFRs had no statutory law. Nasscom believes this will make it easier for US companies to access talent who are vital to the post-Covid world economic recovery, « the industry association said in a statement.

Nasscom had previously submitted comments on behalf of its member firms in which it objected to the provisional final rules for both procedural and factual reasons. « We saw the rule as unjustified and had tried to repeal the IFRs in their entirety as doing so would cause significant damage to American businesses, American workers and the economy of the United States as a whole. « . ”

Although the posting of employees to customer locations including the US is deeply anchored in the business model of Indian IT service companies, their reliance on nonimmigrant visas such as H1B has decreased significantly in recent years. Most Indian IT companies have stepped up their efforts to hire local Americans, although a shortage of skilled workers in the country is a major bottleneck for them.

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H-1B visa, travel visa, Donald Trump

World news – CA – Indian tech companies benefit when the US court announces controversial Trump rules

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