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Business News/ News / World/  US eases H1-B, L-1 visa ban rules with caveats
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US eases H1-B, L-1 visa ban rules with caveats

In June, Donald Trump had signed a proclamation temporarily suspending non-immigrant visas till the end of the year
  • According to political analysts, Trump’s recent move could be motivated by the upcoming elections in the US in November
  • Trump’s recent move could be motivated by the upcoming elections in the US. (Bloomberg)Premium
    Trump’s recent move could be motivated by the upcoming elections in the US. (Bloomberg)

    In a respite to a section of Indians on work visas to the US, the Trump administration has announced “national interest exemptions" for some H-1B and L-1 visa holders. Information technology (IT) and healthcare professionals who continue to be employed with the same employer will be exempt from travel restrictions.

    According to political analysts, Trump’s recent move could be motivated by the upcoming elections in the US in November. American companies, including Facebook, Amazon, Google and Microsoft, had criticised the travel ban, saying the visa restrictions would hurt businesses, and further damage the already-struggling US economy.

    On Wednesday, US Department of State announced the exemptions to the Presidential proclamations suspending entry of certain immigrant and non-immigrant (H-1B, H-2B, and L-1) visa holders into the US, which were issued in April and June. It will also apply to the family members of H-1B, L-1 and certain categories of J1 visa holders.

    The US State Department said in its advisory that H-1B and L-1 visas can now be issued for employees who are “seeking to resume ongoing employment in the US in the same position with the same employer and visa classification". It said forcing employers to replace existing employees may cause financial hardship.

    “The pushback from American companies could be one of the reasons for the policy tweaks," said Siddharth Pai, IT analyst and venture capitalist. “The H-1B programme was set up not just to outsource jobs to India or to benefit Indian companies, but to encourage work-life balance for US citizens. A blanket ban without getting into the nuances will not work."

    In June, Trump had signed a proclamation temporarily suspending non-immigrant visas till the end of the year following the economic crisis due to the covid-19 pandemic.

    “It is impossible to locally develop the high-end skillsets overnight," said Sanchit Vir Gogia, chief executive officer and chief analyst, Greyhound Research. “Outsourcing helps American companies save costs and achieve scale."

    IT industry apex body Nasscom said the move is a step in the right direction and will help US businesses access talent critical to its economic recovery phase in a post-covid world. “However, we remain cautiously optimistic. The impact can only be gauged in course of time," it added.

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    Published: 14 Aug 2020, 06:33 AM IST
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