U.S. unveils long-anticipated restrictions on H-1B guest worker program

The Departments of Labor and Homeland Security on Tuesday unveiled new restrictions to H-1B work visas as part of the Trump administration's long-sought objective of overhauling a guest worker program it said allows U.S. companies to replace American job-seekers with foreign workers who they can pay lower wages.

Under the Department of Labor rule, employers will need to pay H-1B holders higher wages, a move Trump administration officials said will discourage U.S. companies from turning to cheaper labor from abroad.

The DHS rule will redefine the "specialty occupations" H-1B visa holders can qualify for, requiring petitioners to prove they have a college degree in the specific field they are seeking to work in. The changes will also expand compliance enforcement and mandate that workers hired through a third-party firm be granted one-year work authorizations, instead of the current three-year period.

The Department of Labor interim final rule will take effect Thursday, while the DHS companion rule is expected to be enforced in two months. Collectively, the rules represent the broadest overhaul of the H-1B program in decades, according to experts and government officials.

H-1B visas, which are designed for professionals seeking to work in fields deemed to be high-skilled, are popular in the technology sector, including among Silicon Valley companies. At the start of each fiscal year, 85,000 H-1B visas are awarded through a lottery system. Historically, many of the applicants have hailed from India.