The latest executive order related to immigration was signed this week by President Trump. The executive order called “Buy American and Hire American” did not change any existing regulations, but instead directed the Departments of State, Justice, Homeland Security and Labor to review current immigration laws and processes and suggest changes that help protect US workers and their economic interests.
The executive order increased speculation on future changes, especially to the H-1B visa program. The current H-1B lottery program is expected to eventually be replaced by a merit-based system that will give priority to highly skilled workers with advanced degrees, who are usually paid higher wages. Any changes to the current worker visa system will likely hit the technology sector the hardest as most H-1B visas are awarded to this industry. Some companies in this arena employ large numbers of H-1B visa holders. In some cases, up to 15% of the workforce at some tech companies may hold these types of visas.
The new order had no immediate impact on global mobility as this year’s H-1B worker visa lottery has already taken place and any wholesale changes to the awarding of work visas will require new laws to be written. However, the executive order also called for an increased focus on compliance, thereby reducing fraud and abuse within the worker visa/immigration system. In the short term, this is expected to result in greater frequency of workplace audits. Companies may wish to review their internal processes to ensure they are complying and to avoid any potential penalties.