The White House has clarified that the newly announced $100,000 H-1B visa fee will apply only to fresh petitions, not to renewals or current visa holders. “This is a one-time fee that applies only to new visas. It will first be levied in the next lottery cycle,” a senior official told Indian media on Saturday.
White House spokeswoman Taylor Rogers said the intent was to curb misuse by firms filing mass petitions. “This action discourages spamming the system and ensures fairness for American workers,” she added.
President Donald Trump, who signed the proclamation on Friday, said the measure would ensure companies considered local talent first. “We need workers, we need great workers — and this ensures that,” he remarked.
Commerce Secretary Howard Lutnick defended the steep cost, saying it would push firms to train domestic graduates instead of over-relying on foreign hires. “It’s just not economic to keep bringing in people when we have skilled graduates here,” he said.
The US issues about 85,000 new H-1B visas annually, with India-born professionals accounting for nearly three-fourths of approvals in 2023. The fee announcement has sparked unease in India’s IT industry, which depends heavily on the program to deploy skilled staff in the US. Experts warn the new costs may force firms to rethink business models or raise client fees.
As the issue of moonlighting or working elsewhere to make extra money in India is plaguing many tech giants after the Work From Home concession that entailed tech employees work remotely, several Indian tech giants are facing the challenge to keep their workforce committed and focused.
The ethical issue has been raised by tech services giant Infosys first, followed by cloud Major IBM on Wednesday. Infosys has already made it clear that the practice is not ethical and the company may fire those who are moonlighting.
However, no company has so far issued any framework to monitor its employees who are moonlighting as legally it is still daunting to gather evidence and withstand legal suits in courts. Secondly, the problem is not new in smaller and minor companies which have been struggling to pay higher wages to employees to retain them. Often, they blink to let the workforce work elsewhere in non-working hours.
Moreover, the issue is legally overwhelming for the companies as strict guidelines or framework of supervising or monitoring employees is often termed as violation of privacy rules in many courts and they may stand loose the legal battle even after firing such employees.
But the issue has already bogged down even major companies. Besides infosys, IBM Managing Director Sandip Patel said that the company’s position is exactly that of the overall industry in the country. “All of our workers when they are employed, they sign an agreement which says that they are going to be working full-time for IBM. So moonlighting is not ethically right for them to get into,” he said.
However, some startups are encouraging employees to opt for moonlighting or work outside their primary working hours. Swiggy has encouraged the practice but the traditional companies are calling it cheating and unethical and issued warning to employees from practising Moonlighting even in extra hours.
In one case, a techie who was interviewed by a Hyderabad-based company found that he hired another techie to work on his behalf, while he is engaged in working on other projects. He has been summarily fired now but the issue has brought to light the glaring anomaly in misuse of a pact with the company.
Infosys has already warned employees on Monday against moonlighting, saying that involvement in such practice can result in “disciplinary action including termination of employment”. “No two-timing, no moonlighting”, the company said in an internal memo, adding that it “strictly discourages dual employment”.
Wipro Chairman Rishad Premji recently said that the concept of a second job amounts clearly to “plain and simple” cheating. “There is a lot of chatter about people moonlighting in the tech industry. This is cheating — plain and simple,” he emphasised.
