H1B Visa Ban: Impact on US Tech firms

US technology firms such as Google and Apple are likely to face the impact of the H-1B Visa Ban. The proposed suspension could extend into the government’s new fiscal year beginning October 1, 2020, when the validity of the new visas begins. Foreign Companies have been working at localizing their talent mix in the US, in order to reduce the number of H-1B visas they apply for each year.

According to the USCIS data, the share of one of the top ten visa recipients has dropped from 51% to 24% from 2016-2019. Google, Amazon, Apple, Facebook and Tata Consultancy Services, who were the top recipients of the H-1B visa last year have not yet responded to emails seeking final decision.

It is important for the U.S. to access talent critical to the recovery phase. US enterprises need access to essential technology workers who are keeping critical infrastructure operating in the U.S.

Highly skilled workers on Non-Immigrant Visas such as H-1Bs and L-1s, are playing critical roles in the delivery of these services and the development of these products. Without their continued contributions, the economic pain would worsen, industry would slow, and the timeline for a treatment and recovery could prolong.

However, currently there is a consideration toward a temporary ban on various employment visas, including the H-1B and L-1 intra-company transfer permit, to deal with record unemployment numbers in the US as a result of the Covid-19 pandemic.

According to the Immigration Attorneys, the impact on H-1B workers would highly depend on the duration and nature of the restrictions. And, there is quite a large number of H-1B cap-subject employees who are already in the US in some other visa category and they qualify for a change of status within the US. These individuals do not need visas to begin working in H-1B status on October 1, 2020, and would hence not be impacted by a ban on new visa issuance.