Nasscom flags risks in new H-1B visa selection policy

Bengaluru: Technology industry body Nasscom has said the recent changes to the H-1B work visa selection process, which replaces the lottery system for selecting visa recipients, raises important legal, economic, and operational concerns. It calls for a transparent and trusted visa framework.

“By assigning multiple selection entries based on Occupational and Employment Wage Statistics levels, the framework risks moving beyond the statutory focus on ‘specialty occupation’ and toward wage ranking, potentially introducing regional and occupational distortions,” it said.

Wage levels vary significantly by geography and role, and a weighted model could inadvertently disadvantage small and mid-sized enterprises, startups, research institutions, and university-linked employers that operate with moderate but market-appropriate wage structures, Nasscom said in a statement.

While H-1B professionals constitute a small share of the overall US workforce supported by Nasscom member companies, they play a major role in driving innovation, productivity, and job creation across the digital economy.

H-1B petitions at Level I and II wage bands frequently represent entry-level roles for graduates of US universities in science, engineering, and computing disciplines. These positions form a vital part of the STEM talent pipeline, enabling early-career professionals to gain industry experience and progress into mid- and senior-level innovation roles over time. “Under a wage-weighted system, restricting opportunities at the entry level could weaken the future talent base and discourage international students from pursuing advanced education in the US. This would work against the country’s goals of strengthening competitiveness, driving innovation, and supporting higher education,” it said, adding that a sudden shift to a wage-weighted model would introduce uncertainty, increase compliance complexity, and disrupt long-established workforce planning, particularly for smaller and mid-sized firms that align recruitment with academic calendars, client delivery schedules, and product release cycles.

Nasscom member companies collectively support more than 1.6 million skilled jobs across the US, contributing $198 billion to the US GDP. With over 264,500 employees directly in the US and a presence in more than 25 major American communities, Nasscom companies help strengthen both established and emerging technology hubs.

It said any structural reform must preserve predictability, equity, and alignment with statutory intent. Should a wage-weighted approach be pursued, a phased implementation with sufficient lead time would be essential. Delaying implementation until the FY2028 lottery cycle would provide employers the necessary runway to adapt processes, ensure compliance, and maintain confidence in the stability of the US talent and investment environment, it added.