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H1-B changes will have impacts for government contractors. Are you ready?

Updated: Oct 14, 2020

Assuming the new changes to the H1-B program go into effect they will impact all parts of the tech market. You don't have any H1-B's you say? It will impact you as well. If you have tech employees the competition for their talent is about to go through the roof.

So what are the key changes?

- Degree specificity. ie For example a H1B with a Electrical Engineering degree may now be rejected for a Software Developer job because his degree is not specific to the job requirements. This hasn't been the case until now.

-Wage Requirements. In some areas the requirements may now increase the wages of H1B employees by 45%. A rising tide raises all boats, and all tech employee wages.

- H1B will be limited to 1 year visas if working on a third party site.

Some will love these changes, some will hate them. There are approximately 583,420 H1-B with the changes affecting an estimated 1/3 of them (or 195k). The result regardless will be fewer tech workers available for a large and growing number of tech jobs. That means competition will be fierce.

What you need to know in government contracting?

Bid with caution. If you have allot of fixed rate pricing for technical labor in your contracts you are at risk on failing to fill those roles. The employees you have, and the employees you want may soon be out of your range. Getting your pricing right will be critical to succeed moving forward.


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