The US Small Business Administration’s Office of Advocacy called for a delay in proposed wage hikes for H-1B visa holders and other visa holders in a letter to the US Department of Labor.
“Advocacy is concerned this interim final rule, which will cost employers over $198 billion over a 10-year period, according to DOL’s analysis, will have a disproportionate impact on small businesses,” according to the office.
Increased pay requirements would have a detrimental impact on small businesses, which cannot afford the increases and would lose out on skilled workers, according to the office.
The Department of Labor released the interim final rule last month. The National Foundation for American Policy says the rule appears designed to price H-1B workers out of the market.
Small businesses are already struggling under the Covid-19 crisis, the office noted. It called for a delay of the rule by a minimum of 30 days to receive comments from small businesses on the negative affects of the proposed rule.