Tech and Global Mobility: The Impact of the New US Administration

Tech companies in the United States are some of the biggest beneficiaries of the H-1B visa program, which allows US companies who cannot find the people with the skills they need in the US to temporarily hire qualified people from overseas including the UK.

With limited exceptions the H-1B program is restricted to a total of 85,000 new visas available annually for qualified foreign workers in specialty occupations.

One of the final acts of the Biden administration, included a final regulation that made important business-friendly modifications to the H-1B program that went into effect on 17 January 2025.

Specifically, the rule revises the definition of the H-1B specialty occupation, strengthens protections for student visa holders awaiting H-1B status, strengthens the US Citizenship and Immigration Services’ ability to audit employers on-site for immigration compliance, and codifies the agency’s longstanding policy of deference to its prior approvals, among other provisions.

As the US business community prepares for policy changes under the new administration, the focus for many, especially those in the tech industry, are possible impacts to legal immigration. President Trump has expressed a number of different views related to this visa category, and has show support for H-1B visas in the lead-up to his inauguration.

The approach to the H-1B program has varied across different administrations. Historical data indicates that H-1B petition denial rates increased during the first Trump administration, peaking at 24% for initial employment petitions, compared to denial rates as low as 6% in the four years prior. If similar policies are reinstated, denial rates may rise again, making it harder for tech companies to hire qualified people from the UK.

Workplace immigration audits may also increase under the new Trump administration. These audits typically involve a review of key aspects of H-1B petitions, including wages and work locations, to ensure compliance with regulations. Employers that hire foreign workers may benefit from conducting internal compliance reviews to prepare for potential future enforcement actions.

The H-1B program includes wage requirements that vary based on profession, location and experience. If wage level requirements, increase businesses will need to evaluate the feasibility of hiring for entry-level positions under the program.

The first Trump administration imposed travel restrictions against a variety of countries citing security-related grounds. Additional restrictions were introduced following the onset of the COVID-19 pandemic on health-related grounds. The administration offered limited exemptions for employees of industries engaged in support for critical US infrastructure including various tech-related fields.

The current Trump administration has indicated plans to impose holds on issuing visas for certain countries as part of broader policy objectives. The degree to which those in the tech field may be exempt from future travel restrictions is unclear but any future exemptions offered would require a determination that the travel is in the US national interest.

Should the H-1B program’s use become more limited in the coming years, employers should also consider the following alternative US visa options: 
•    The O-1 visa is available to those able to demonstrate extraordinary ability in their area of expertise. While the visa category does require a showing that one is at or near the top of their field, the O-1 is not subject to numerical limitations and has proved largely less controversial than the H-1B program.
•    The L-1 intracompany transfer visa type allows for the visa sponsorship of an employee who has at least one year of continuous employment within a corporate group while outside the US. It is a common strategy to park employees outside the US for a year before pursuing the L-1 visa option as an alternative to the numerically limited H-1B program.
•    The E-2 visa is available to a limited set of nationalities (“treaty countries”), including the UK, while further requiring that the nationality of the visa applicant aligns with the nationality of the ultimate ownership of the US employer (e.g., a company with at least 50% British ownership may deploy a British citizen on the E-2 visa). Provided the nationality requirement is met, the E-2 is an alternative to the H-1B.

Given the ongoing policy shifts, companies in the technology sector should explore the full range of available US visa options and consider a multi-jurisdictional approach to workforce management to attract and retain talent under a second Trump administration. 

William Diaz is a US Immigration Attorney at the global mobility advisers Fragomen. 

#Tech #Global #Mobility #Impact #Administration