Key takeaways
- Tech companies such as Microsoft and Amazon are warning H-1B visa holders to stay in the US and avoid travelling after the Trump administration added an $100,000 annual fee to applications
- Companies and affected employees are dealing with a high level of uncertainty and anxiety, as the White House claims the H-1B program has been abused in the past and displaced US workers
- The move could see progress in the US tech industry slow, as companies fail to acquire top talent
Big Tech companies Microsoft, Amazon, and Alphabet are among those warning employees that hold a H-1B visa to avoid travelling and stay in the US, as new program rules come into effect. This will see an $100,000 annual fee added to applications.
The rule has created a level of uncertainty for employees and employers, with many companies warning that leaving the country could be detrimental to H-1B holders’ positions in the US.
As one of the most frequent users of the H-1B visa program, the tech industry could suffer from these changes in the long run, as they fail to grab the best talent due to fees and employees look for roles elsewhere in the world.
Tech Companies Advise H-1B Employees To Avoid Travel Amidst New Visa Fee
Tech companies including Microsoft, Alphabet, and Amazon have advised employees on the H-1B visa to avoid travelling outside of the US, due to new regulations from the Trump administration that introduces an $100,000 annual fee for the program.
Companies sent messages to affected employees that advised them to return to the US, if they were travelling, by Saturday, in time for the new rules to go into effect on Sunday.
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The H-1B visa program is an immigration initiative that seeks to address specific workplace shortages. The visas are mostly used by the tech industry to hire international professionals of science, math, and computing.
‘Creating Uncertainty’ for Employees, Says Microsoft
In its message to employees, Microsoft admitted that the announcement will be “creating anxiety and uncertainty” amongst its staff. Not only for those already living in the US, but for incoming employees. One individual, talking to Bloomberg, said that he’d already sold his car and put his house up for rent to start a new job in the US, but was now being told to stay put.
As well as warning H-1B visa holders, companies such as Ernst & Young and Amazon have also warned those on H-4 dependent vias to stay put. These are used for spouses and dependents of those who are on the H-1B program.
Tech companies have historically relied heavily on the program to bring skilled workers into the US. According to US government data, the companies with the greatest number of employees on H-1B visas are Amazon, Tata Consultancy Services, Microsoft, Meta, and Apple.
Move Threatens Employment-Based Immigration System
The new application fee could greatly harm the ability of the US tech industry to bring in foreign talent. It certainly has the potential to reduce the number of international hires a company is able to make, as well as the number of jobseekers applying for US positions.
The Trump administration have said the new rules are in place to bolster legitimate visa applications, and claimed that the abuse of the program has caused US workers to be displaced in the past.
Although the White House have since confirmed the fee will only affect new visas, the move will certainly still impact how tech companies are hiring in the future. Especially since companies such as Anthropic seem set on hiring internationally for the best talent. Failure to secure this talent within the US could see progress in the tech sector slow, as specialists stay in their respective countries.
