The new order has asked the agencies to mandate the department heads to conduct an audit of the contracts to verify if the work for which the contracts have been awarded can be executed by U.S. employees and that the income of domestic workers have been compromised by such hiring.
Although the executive order by the US President Donald Trump to ban federal agencies from hiring foreign workers, mostly on an H1B visa, has been deemed a move to address domestic political issues in the election year, its impact may well be felt deep on Indian firms. Indian companies which earn contracts from the US federal agencies for the purposes of outsourcing and servicing may be badly hit by Trump’s decision to ban a prominent mode of emigration to the US.
What does Trump’s executive order on H1-B visa say
The executive order has asked all federal agencies to assess if they are in compliance with the requirement that the competitive service must be assigned only to U.S. citizens and nationals. Subsequently, the Labor Department will also finalise rules to prohibit H1-B employers from moving H1-B employees to the job sites of other employers to displace American workers.
The new order has asked the agencies to mandate the department heads to conduct an audit of the contracts to verify if the work for which the contracts have been awarded can be executed by U.S. employees and that the income of domestic workers has been compromised by such hiring.
Will Indian IT firms be affected?
The executive order signed by Trump is likely to affect the workers who are working with federal agencies on the basis of the contract signed between their employer and agencies. Indian firms work for federal agencies in the US and employ people from India and other developing economies for the lack of expense they have to incur.
Indian IT firms take their employees to work on-site in the US as per the demands of their clients and a higher wage for the US employees compel them to hire more people from developing economies such as India and the latest executive order may very well hit their economy harder amid the coronavirus pandemic.