Federal Register - January 8, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 5 / Friday, January 8, 2021 / Rules and Regulations TABLE 2OMB A4 ACCOUNTING STATEMENTContinued $, 2019 for FY 2022FY 2032
Category
Primary estimate
Annualized quantified, but un-monetized, benefits Unquantified Benefits
Costs:
Annualized monetized costs over 10 years discount rate in parenthesis.
Minimum estimate 0
Maximum estimate 0
Source citation 0
This final rule will benefit petitioners agreeing to pay H1B workers a proffered wage corresponding to OES wage level III or IV, by increasing their chance of selection in the H1B cap selection process. These changes align with the Administrations goals of improving policies such that the H1B classification more likely will be awarded to the highest paid or highest skilled beneficiaries. These changes will also better align the administration of the H1B
program with the dominant Congressional intent.
This final rule may provide increased opportunities for similarly skilled U.S.
workers in the labor market to compete for work as there will be fewer H1B
workers paid at the lower wage levels to compete with U.S. workers.150
Further, assuming demand outpaces the 85,000 visas currently available for annual allocation, DHS believes that the potential reallocation of visas to favor those petitioners able to offer the highest wages to recruit the most highly skilled workers will result in increased marginal productivity of all H
1B workers.
This final rule may provide increased wages for positions offered to H1B capsubject beneficiaries.
3 percent $15,968,792
7 percent $16,089,770
N/A
N/A
RIA.
Annualized quantified, but un-monetized, costs
N/A
Qualitative unquantified costs
This final rule is expected to reduce the number of petitions for lower wage H
1B workers. This may result in increased recruitment or training costs for petitioners that seek new pools of talent. Additionally, petitioners labor costs or training costs for substitute workers may increase. DHS also acknowledges that some petitioners might be impacted in terms of the employment, productivity loss, search and hire cost per employer of $4,398, and profits resulting from labor turnover. In cases where companies cannot find reasonable substitutions for the labor the H1B beneficiary would have provided, affected petitioners will also lose profits from the lost productivity. In such cases, employers will incur opportunity costs by having to choose the next best alternative to immediately filling the job the prospective H1B worker would have filled. There may be additional opportunity costs to employers such as search costs and training.
Such possible disruptions to companies will depend on the interaction of a number of complex variables that are constantly in flux, including national, state, and local labor market conditions, economic and business factors, the type of occupations and skills involved, and the substitutability between H
1B workers and U.S. workers.
Petitioners that would have hired relatively lower-paid H1B workers, but were unable to do so because of non-selection and ineligibility to file a petition, may incur reduced labor productivity and revenue.
RIA.
Transfers:
Annualized monetized transfers: on budget
N/A
N/A
RIA.
N/A
N/A
N/A
Annualized monetized transfers: off-budget
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N/A
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From whom to whom?
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tkelley on DSKBCP9HB2PROD with RULES3
From whom to whom?
Miscellaneous analyses/category
Effects
Effects on state, local, and/or tribal governments
N/A
RFA.
Effects on small businesses
N/A
RFA.
Effects on wages
N/A
None.
Effects on growth
N/A
None.
2. Background and Purpose of the Final Rule The H1B visa program allows U.S.
employers to temporarily hire foreign workers to perform services in a specialty occupation, services related to a Department of Defense DOD
cooperative research and development project or coproduction project, or 150 DHS acknowledges, however, that some employers may increase the wages of existing H
1B workers without changing job requirements or requiring higher levels of education, skills, training, and experience. In those cases, there may not be anticipated vacancies at wage levels I and II for U.S.
workers to fill.
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services of distinguished merit and ability in the field of fashion modeling.151 A specialty occupation is defined as an occupation that requires the 1 theoretical and practical application of a body of highly specialized knowledge and 2
attainment of a bachelors or higher degree in the specific specialty or its equivalent as a minimum qualification 151 See INA section 101a15Hib, 8 U.S.C.
1101a15Hib; Public Law 101649, section 222a2, 104 Stat. 4978 Nov. 29, 1990; 8 CFR
214.2h.
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for entry into the occupation in the United States.152
The number of aliens who may be issued initial H1B visas or otherwise provided initial H1B nonimmigrant status during any FY has been capped at various levels by Congress over time, with the current numerical limit generally being 65,000 per FY.153
Congress has also provided for various exemptions from the annual numerical allocations, including an exemption for 152 See
INA section 214il, 8 U.S.C. 1184il.
INA section 214g1A, 8 U.S.C.
1184g1A.
153 See
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08JAR3
