The United States is set to implement a modernized version of the H-1B visa program starting January 17, 2025, aiming to enhance fairness, transparency, and efficiency in hiring global talent. The updated rules, announced by the U.S. Department of Homeland Security (DHS), also address concerns over fraud involving employers, employees, and advocacy groups.

Boosting Competitiveness and Flexibility

“These enhancements provide employers with more flexibility to hire global talent, strengthen our economic competitiveness, and allow skilled workers to continue contributing to American innovation,” said Alejandro N. Mayorkas, Secretary of Homeland Security, as reported by Business Standard. The reforms are expected to benefit Indian professionals, who make up a significant portion of H-1B visa holders. In 2023, Indian nationals accounted for 72.3% of the 386,000 H-1B visas issued.

The updated H-1B program is part of a broader package of reforms for nonimmigrant visas, including L1 and Student visas. The final rule, published on December 18, 2024, will take effect on January 17, 2025. USCIS will release a revised Form I-129 on the same day to incorporate these changes.

Key Updates to the H-1B Program

• Refined Specialty Occupation Criteria: The definition of "specialty occupation" has been updated to provide clearer requirements for eligible roles. H-1B positions now require that the degree be "directly related" to job duties.

• Updated Cap-Exempt Rules: Nonprofit and government research organizations can now qualify as cap-exempt if their primary focus is research. Universities, affiliated nonprofits, and government research organizations are eligible to submit petitions year-round.

• Simplified Processes: Students transitioning from F-1 visas to H-1B status will benefit from automatic cap-gap extensions, and USCIS will expedite processing for H-1B extensions and revisions.

• Stricter Safeguards: New measures will prevent H-1B lottery abuse, including penalties for bulk applications by employers. Enhanced compliance inspections will ensure the program's integrity.

• Entrepreneurs and Controlling Interest: Individuals with controlling interest in their sponsoring organization can qualify for H-1B visas, though stricter conditions apply.

• Preventing Lottery Abuse: To ensure fairness, stricter measures will reduce the likelihood of bulk applications, making the lottery process more equitable for genuine applicants.

• Better Employer-Employee Relationship: Employers must now submit more detailed documentation to verify a legitimate employer-employee relationship.

• Digital Approach: USCIS is moving toward digital technologies to modernize and secure the H-1B lottery and application processes, aiming for greater efficiency and transparency.

Additional Information

USCIS has introduced a beneficiary-focused selection process, prioritizing unique beneficiaries over multiple employer registrations. Starting in FY 2025, each registered beneficiary must provide valid passport or travel document information.

A new edition of Form I-129 (dated April 1, 2024) will be required for submissions starting on that date. The FY 2025 H-1B registration period will run from March 6 to March 22, 2024, and must be completed via the USCIS online system.