The US Companies May Not File H-1B Visa Petitions

COVID-19 pandemic will hurt the US dream of various IT professionals in India, as companies may not file their H-1B visa petitions despite their selection by the USCIS (US Citizenship and Immigration Services).

The USCIS has completed its selection of H-1B candidates for FY2021. It has received 275,000 unique online registrations and out of which, 67.7% were for Indian nationals. Approximately 30% of online registrations of Indian IT companies have been selected. Selected companies can file H-1B petitions for these selected candidates within 90 days from April 1, 2020. But companies may not now need the entire number of selected candidates because of the slowdown in the US economy, several contracts being canceled due to the COVID-19 situation.

Certain companies have indicated that they may not file petitions for about 40% of their selected candidates because of the reduced demand for H-1B workers.

As mandated by the US Congress, the USCIS can every year issue a maximum of 65,000 H-1B work visas to highly skilled foreign workers. It also issues an additional 20,000 H-1B visas to those workers who have obtained a higher degree or a master from an educational institution in the US.

The slowdown in the economy and cancellations of contracts has reduced the demand for H-1B visas. According to estimation, an Indian company needs to spend around $7,000 per H-1B petition. Given the fact that the employee may no longer be required in the US, firms may not file the petitions for many of the selected employees.