According to experts the Hike will be more damaging to be employees in the US than to H1B visa holders.

Hike in wages brought by the US administration for hiring H1B visa workers saw a lot of opposition from the startup community in the US. Us Small Business Administration (SBA) has sought a delay in implementation of a salary increment process.

The objective to sought delay is to put together the argument as to why the hiking wages will negatively impact the small businesses, startups and entrepreneurs in the US who depend on foreign talent. They have a feeling that their performance will be majorly affected if the wages of h1b visa holders is hiked.

According to experts the Hike will be more damaging to be employees in the US than to H1B visa holders.

The Interim Final Rule was issued by the US Department of Labor early last month, saying that there will be an increase in salaries offered to H-1B visa holders by up to 50 per cent. In certain cases, the hike would go up to 80 percent and beyond too.

The motive behind the issued rule was to push for local recruitment, as the proposed salary hike will make it expensive to hire foreign labour forcing us employers to hire local talent instead.

Now SBA is trying to highlight the negative impact of the rule on productivity and performance of American startups.