Trump admin makes H1-B visa approval tough; Indian firms to be impacted

Agencies
February 23, 2018

Washington Feb 23: The Trump administration has announced a new policy that makes very tough the procedure of issuing H-1B visas to those to be employed at one or more third-party worksites, a move that will hugely impact Indian IT companies and their employees.

Under the new policy, the company would have to go an extra length to prove that its H-1B employee at a third-party worksite has specific and non-qualifying speculative assignments in a speciality occupation.

The H-1B programme offers temporary US visas that allow companies to hire highly skilled foreign professionals working in areas with shortages of qualified American workers.

Indian IT companies, which are among the major beneficiaries of H-1B visas, has a significant number of its employees deployed at third-party worksites. A significant number of American banking, travel and commercial services depend on on-site IT workers from India to get their job done.

The new move announced yesterday through a seven-page policy empowers the US Citizenship and Immigration Services (USCIS) to issue H-1B visas to an employee only for the period for which he/she has worked at a third-party worksite.

As such the issuing of H-1B visas could be of less than three years. This would reverse the tradition of issuing the H-1B visas for three years at a time.

Effective immediately, the new guidance comes weeks ahead of the beginning of the H-1B visas filing season, which is expected to be April 2, for the fiscal year 2019 beginning October 1, 2018.

The guidance says in order for an H-1B petition involving a third-party worksite to be approved, the petitioner must show by a preponderance of the evidence that the beneficiary will be employed in a speciality occupation and the employer will maintain an employer-employee relationship with the beneficiary for the duration of the requested validity period.

When H-1B beneficiaries are placed at third-party worksites, the companies must demonstrate that they have specific and non-speculative qualifying assignments in a speciality occupation for that beneficiary for the entire time requested on the petition.

While an H-1B petition may be approved for up to three years, the USCIS will, in its discretion, generally limit the approval period to the length of time demonstrated that the beneficiary will be placed in non-speculative work and during which the petitioner will maintain the requisite employer-employee relationship, an official statement said.

Extensions of H-1B visas have become even tougher, in particular, if the employee has been on a bench for any part of their previous duration.

Sometimes American companies abruptly end the contract of an employee, as a result, the workers temporarily do not have any work, which in IT parlance is called on the bench.

During this period, while they maintain their H-1B visas status, official investigations have revealed that foreign IT workers on H-1B visas do not get paid, which the USCIS says is illegal and abuse of the system.

"If an H-1B petitioner is applying to extend H-1B employment for a beneficiary who was placed at one or more third-party worksites during the course of past employment with the same petitioner, that petitioner should also establish that the H-1B requirements have been met for the entire prior approval period," the USCIS said.

And if these conditions are not met, and if the petitioner did not comply with the terms and conditions of the original petition and did not file an amended petition on time, USCIS may have eligibility concerns about a subsequent petition filed to extend the beneficiary's employment, the policy memorandum said.

The latest policy memorandum is part of President Donald Trump's 'Buy American and Hire American Executive Order' and the directive to protect the interests of US workers, it said.

Employment-based petitioners who circumvent the worker protections outlined in the nationâs immigration laws not only injure US workers (eg their wages and job opportunities), but also the foreign workers for whom they are petitioning, it said.

Companies seeking H-1B visas for their employees working at a third-party site would now have an intensive paperwork to file before submitting their applications.

This includes evidence of actual work assignments, which may include technical documentation, milestone tables, marketing analysis, cost-benefit analysis, brochures, and funding documents.

The letter should provide information, such as a detailed description of the specialised duties the beneficiary will perform, the qualifications required to perform those duties, the duration of the job, salary or wages paid, hours worked, benefits, a detailed description of who will supervise the beneficiary and the beneficiaryâs duties, and any other related evidence, the USCIS said.

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News Network
April 21,2020

New York, Apr 21: Oil prices plunged below zero on Monday as demand for energy collapses amid the coronavirus pandemic and traders don't want to get stuck owning crude with nowhere to store it.

Stocks were also slipping on Wall Street in afternoon trading, with the S&P 500 down 0.9%, but the market's most dramatic action was by far in oil, where benchmark U.S. crude for May delivery plummeted to negative $3.70 per barrel, as of 2:15 pm. Eastern time.

Much of the drop into negative territory was chalked up to technical reasons — the May delivery contract is close to expiring so it was seeing less trading volume, which can exacerbate swings. But prices for deliveries even further into the future, which were seeing larger trading volumes, also plunged.

Demand for oil has collapsed so much due to the coronavirus pandemic that facilities for storing crude are nearly full.

Tanks could hit their limits within three weeks, according to Chris Midgley, head of analytics at S&P Global Platts.

Benchmark U.S. crude oil for June delivery, which shows a more ”normal” price, fell 14.8% to $21.32 per barrel, as factories and automobiles around the world remain idled. Big oil producers have announced cutbacks in production in hopes of better balancing supplies with demand, but many analysts say it's not enough.

“Basically, bears are out for blood,” analyst Naeem Aslam of Avatrade said in a report. “The steep fall in the price is because of the lack of sufficient demand and lack of storage place given the fact that the production cut has failed to address the supply glut.”

Halliburton swung between gains and sharp losses, even though it reported stronger results for the first three months of 2020 than analysts expected. The oilfield engineering company said that the pandemic has created so much turmoil in the industry that it “cannot reasonably estimate” how long the hit will last. It expects a further decline in revenue and profitability for the rest of 2020, particularly in North America.

Brent crude, the international standard, was down $1.78 to $26.30 per barrel. .

In the stock market, the mild drops ate into some of the big gains made since late March, driven lately by investors looking ahead to parts of the economy possibly reopening as infections level off in hard-hit areas.

Pessimists have called the rally overdone, pointing to the severe economic pain sweeping the world and continued uncertainty about how long it will last.

The Dow Jones Industrial Average was down 364 points, or 1.5%, to 23,887. The Nasdaq was down 0.1%..

More gains from companies that are winners in the new stay-at-home economy helped limit the market's losses Amazon rose 1.4%, and Netflix jumped 3.8% as people shut in at home buy staples and look to fill their time. Clorox likewise rose toward a new record and was up 1% as households and businesses that remain open look to stay clean.

In Tokyo the Nikkei 225 fell 1.1% after Japan reported that its exports fell nearly 12% in March from a year earlier as the pandemic hammered demand in its two biggest markets, the U.S. and China.

The Hang Seng index in Hong Kong lost 0.2%, and South Korea's Kospi fell 0.8%.

European markets were modestly higher The German DAX was up 0.5%, the French CAC 40 was up 0.7% and the FTSE 100 in London gained 0.7%.

In a sign of continued caution in the market, Treasury yields remained extremely low. The yield on the 10-year Treasury slipped to 0.64% from 0.65% late Friday. It started the year near 1.90%. Bond yields drop when their prices rise, and investors tend to buy Treasurys when they're worried about the economy.

Stocks have been on a generally upward swing recently, and the S&P 500 just closed out its first back-to-back weekly gain since the market began selling off in February. Promises of massive aid for the economy and markets by the Federal Reserve and U.S. government ignited the rally, which sent the S&P 500 up as much as 28.5% since a low on March 23.

More recently, countries around the world have tentatively eased up on business-shutdown restrictions put in place to slow the spread of the virus.

But health experts warn the pandemic is far from over and new flareups could ignite if governments rush to allow ”normal” life to return prematurely.

The S&P 500 remains about 15% below its record high in February as millions more U.S. workers file for unemployment every week amid the shutdowns.

Many analysts also warn that a significant part of the recent recovery in stocks is due to the expectation among some investors that the economy will rebound sharply once economic quarantines are lifted. They're essentially predicting that a line chart of the economy will ultimately resemble the letter “V,” with a wild ride down but then a quick pivot to a vigorous recovery.

That may be to optimistic. “We caution that a U-shaped recovery is also quite likely,” where the economy bottoms out and stays at that low level for a while before recovering, strategists at Barclays warned in a recent report.

Without strong testing programs for COVID-19, businesses likely won't feel comfortable bringing back their full workforces for a while.

”With risk assets now overbought, the chance for a correction has increased,” Morgan Stanley strategists wrote in a report.

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News Network
June 30,2020

Beijing, June 30: China said on Tuesday it was concerned about India’s decision to ban Chinese mobile apps such as Bytedance’s TikTok and Tencent’s WeChat and was making checks to verify the situation.

Chinese foreign ministry spokesman Zhao Lijian told reporters during a daily briefing that (the Prime Minister Narendra Modi-led government of) India has a responsibility to uphold the rights of Chinese businesses.

India on Monday banned 59, mostly Chinese, mobile apps in its strongest move yet targeting China in the online space since a border crisis erupted between the two countries this month.

The apps are “prejudicial to the sovereignty and integrity of India, the defence of India, the security of state and public order", the ministry of information technology said in a statement, which came two weeks after 20 Indian Army personnel were killed in a violent clash on the India-China border in Ladakh.

The companies have been invited to offer clarifications before a government panel, which will decide whether the ban can be removed or will stay.

The move also came ahead of military and diplomatic talks between India and China scheduled this week.

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News Network
May 25,2020

Beijing, May 25: China has reported 51 new coronavirus cases including 40 asymptomatic infections, majority of them in the contagion's first epicentre Wuhan, where over six million tests have been conducted in the last 10 days, health officials said on Monday.

The country's National Health Commission (NHC) said that 11 new imported cases were reported on Sunday.

While no new domestically-transmitted COVID-19 cases were reported in China on Sunday, 11 imported cases including 10 in the Inner Mongolia Autonomous Region and one in Sichuan province were reported, the NHC said in its daily report.

Out of the 40 new asymptomatic cases, 38 were reported in Wuhan, which is currently undergoing mass testing of its over 11.2 million people after a spike in the asymptomatic cases.

Currently, 396 people with asymptomatic symptoms are under medical observation in China, including 326 in Wuhan, according to the health authority.

Asymptomatic cases refer to the patients who have tested COVID-19 positive but develop no symptoms such as fever, cough or sore throat. However, they pose a risk of spreading the disease to others.

Wuhan, which earlier had over 50,000 cases between January and March, started a campaign on May 14 to expand the nucleic acid testing in order to better know the number of asymptomatic cases or people who show no clear symptoms despite carrying the virus.

According to the latest figures released by the Wuhan municipal health commission, the city conducted more than 6 million nucleic acid tests between May 14 and 23.

On Saturday, the city carried out nearly 1.15 million tests, state-run Xinhua news agency reported on Monday.

Nucleic acid testing is a molecular technique for screening blood donations to reduce the risk of transfusion transmitted infections.

As of Sunday, a total of 82,985 confirmed COVID-19 cases have been reported in China with 4,634 fatalities, the NHC added.

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