The new rule

The new rule modernizes the H-1B program by streamlining the approvals process, increasing its flexibility to better allow employers to retain talented workers, and improving the integrity and oversight of the program, as per a statement released by the US Department of Homeland Security (DHS) .

The rule builds on previous efforts by the Administration to ensure the labour needs of American businesses are met while reducing undue burdens on employers and adhering to all U.S. worker protections under the law.

“American businesses rely on the H-1B visa program for the recruitment of highly-skilled talent, benefitting communities across the country,” said Secretary of Homeland Security Alejandro N. Mayorkas.

“These improvements to the program provide employers with greater flexibility to hire global talent, boost our economic competitiveness, and allow highly skilled workers to continue to advance American innovation," said Alejandro N. Mayorkas.

USCIS Director Ur M. Jaddou said: “The H-1B program was created by Congress in 1990, and there’s no question it needed to be modernized to support our nation’s growing economy."

“The changes made in today’s final rule will ensure that U.S. employers can hire the highly skilled workers they need to grow and innovate while enhancing the integrity of the program," Ur M. Jaddou said.

Why H-1B nonimmigrant visa is important?

H-1B nonimmigrant visa program allows U.S. employers to temporarily employ foreign workers in speciality occupations, defined by statute as occupations that require highly specialized knowledge and a bachelor’s or higher degree in the specific specialty, or its equivalent.

What is the aim of the new rule? 

The final rule aims to provide greater flexibility for employers and workers by modernizing the definition and criteria for speciality occupation positions as well as for nonprofit and governmental research organizations that are exempt from the annual statutory limit on H-1B visas.

These changes will help U.S. employers hire the employees they need to meet their business needs and remain competitive in the global marketplace.

F-1 visa 

The rule also extends certain flexibilities for students on an F-1 visa seeking to change their status to H-1B to avoid disruptions in lawful status and employment authorization for those F-1 students.

To improve program efficiency, the final rule will allow USCIS to more quickly process applications for most individuals who had previously been approved for an H1B visa.

It will also allow H1B beneficiaries with a controlling interest in the petitioning organization to be eligible for H-1B status subject to reasonable conditions.

"Finally, the rule strengthens program integrity by codifying USCIS’ authority to conduct inspections and impose penalties for failure to comply; requiring that the employer must establish that it has a bona fide position in a speciality occupation available for the worker as of the requested start date; clarifies that the Labor Condition Application must support and properly correspond with the H-1B petition; and requires that the petitioner have a legal presence and be subject to legal processes in court in the United States," the statement said.

In order to implement this rule, a new edition of Form I-129, Petition for a Nonimmigrant Worker will be required for all petitions beginning January 17, 2025, which is the rule’s effective date.