A 2020 executive order from Donald Trump's administration might have a significant effect on future immigration laws in the United States. The U.S. Department of Labor (DOL) under Trump's administration put up a proposal in october 2020 to drastically increase the minimum pay requirements for those with H-1B visas and employment-based immigration.
The intention was quite clear: increase the cost of recruiting foreign labor and drive them out of the American labor market. The rule sent shockwaves through enterprises that relied on foreign expertise, even though it was halted on legal grounds. The idea would restrict many companies, especially smaller ones, from acquiring foreign talent since it would force employers to pay H-1B visa holders significantly more than American labor.
This may successfully discourage companies from sponsoring H-1B employees in any way, sharply lowering the volume of applications and jeopardizing the program. Such pay increases may put a stop to the H-1B visa's usefulness and reduce the number of jobs available to qualified foreigners in the United States. Immigration lawyers objected to the rule, claiming that the DOL had inflated the needed salary for foreign workers by manipulation of wage formulae.
Sharp pay hikes followed, which made it extremely harder for businesses to employ H-1B workers or sponsor foreign nationals for permanent status. A federal court invalidated the regulation in december 2020, citing mistakes made by the trump administration during the procedural stage. But before he left office, trump tried one more time to bring it back, continuing his campaign to keep foreign laborers out of the American labor market. The Joe Biden administration postponed the rule's implementation until november 2022 and did not object to its repeal. The DOL has put the rule on hold as of june 2023, suggesting that it might not move further with the idea.