Trump may hit US tech companies with plan to curb work visas

US President Trump plans to change work visa regulations, according to Bloomberg. The presidential decree could affect the importation of foreign workers by tech companies.

The American Bloomberg has been able to see the concept of the presidential order. As a result of the order, American companies would be forced to first try to fill a vacancy with an American applicant before they can look across the border for a suitable candidate. If they are then able to get an applicant from abroad, a work visa is only granted to the 85,000 ‘highest paid’ employees in a year. With the decree, Trump wants to protect the American labor market.

Major tech companies use the so-called H-1B visas to bring qualified personnel from abroad to the US, but so-called outsourcers use them even more than Silicon Valley. According to Bloomberg, the top five recipients of H1B visas are these types of outsourcing companies, which seek personnel for comparatively lower-skilled jobs. Only later will technology companies follow in that ranking.

So while it may be a nuisance for the well-known US tech companies to first look in the US to fill their vacancies before being allowed to look across the border, that salary ranking for a work visa is probably another boon for the companies. Bloomberg writes that outsourcing companies pay an average of less than $70,000 a year to their employees, while tech companies pay more than $100,000. Silicon Valley would therefore take precedence.

The White House did not respond to a request for comment from Bloomberg. Whether and possibly when the presidential order will be given is not clear.