US Department of Homeland Security releases final rule on H-1B visas.

The U.S. Department of Homeland Security (DHS) announced on Tuesday (December 17th) the final rule for H-1B visas, simplifying the approval process. The DHS stated that the new rule will significantly enhance U.S. companies’ ability to fill critical field position vacancies, thereby strengthening the U.S. economy.

H-1B is a key program for attracting international talent, allowing U.S. employers to temporarily hire foreign workers for specialty occupations. According to regulations, specialty occupations refer to positions that require high levels of professional knowledge, and a bachelor’s degree or higher in a specific field or its equivalent.

However, the H-1B non-immigrant visa program has been criticized in the past for being overly complex and prone to abuse. The final rule announced by DHS on Tuesday aims to update the definition and standards of “specialty occupations” to provide greater flexibility for employers and workers.

The new provision redefines which non-profit entities and government research institutions can be exempt from the H-1B cap limit.

Under the new rule, only research-oriented non-profit entities and government research institutions engaged in “fundamental activities” are eligible. The previous requirement of being “primarily engaged” in research work or having a “primary mission” of a research-oriented nature for non-profit entities and government research institutions to qualify for an H-1B cap exemption often led to confusion regarding which organizations could be exempt and which could not.

DHS stated that the new rule modernizes the H-1B visa program, streamlining the approval process, increasing flexibility, and enabling employers to retain top talent more effectively. The rule also enhances the integrity and oversight of the H-1B visa program, building on previous efforts to ensure U.S. businesses’ labor needs are met while reducing unnecessary burdens on employers.

The final rule issued by DHS also provides certain flexibility for F-1 visa holders seeking to transition to H-1B to avoid disruption to the legal status and employment authorization of these F-1 students.

To enhance the efficiency of the H-1B visa program, the final rule will allow U.S. Citizenship and Immigration Services (USCIS) to expedite the processing of most previously approved individual H-1B visa applications. The rule also allows H-1B beneficiaries with ownership interests in the petitioner under certain conditions to qualify for H-1B status.

The final rule strengthens the integrity of the H-1B visa program, empowering the immigration agency to conduct inspections and impose penalties for non-compliance, requiring employers to demonstrate the availability of a bona fide position in a specialty occupation from the application date, ensuring that labor condition applications support and correspond correctly with H-1B applications, and requiring applicants to have legal status and comply with U.S. legal procedures.

Ur Jaddou, the USCIS Director, stated, “The H-1B program was established by Congress in 1990, and undoubtedly, it needs modernization to support our country’s ever-growing economic environment. The modifications made in today’s final rule will ensure that U.S. employers can hire high-skilled workers needed for company growth and innovation while strengthening the program’s integrity.”

Each fiscal year, U.S. Citizenship and Immigration Services opens 85,000 H-1B visas, with 65,000 reserved for applicants with a bachelor’s degree and 20,000 for those with a master’s degree or higher obtained in the U.S. However, the number of H-1B applications far exceeds these quotas every year.