B1 Option Being Rescinded as Alternative to H1B

A new proposal has been filed in the Federal Register recently. It says that plans have been made by the U.S. State Department to get rid of the B1 business visa option instead of an H1-B visa.

Within the next 60 days, the proposal is going to be analyzed and evaluated and will only go into effect afterward. When it does, it can impact around 8,000 high skilled, foreign workers, and most of them are Indians. So, what exactly is this proposal and how does it affect the workers?

What Is “B Instead of H” (BILOH)?

B instead of H refers to a nonimmigrant visa that is applied through a U.S. embassy or consulate directly. It serves as a solution for an employee from a different country to get into the U.S. in order to perform productive work. What’s great about this visa is that it covers multiple business activities. This is amazing because the ESTA, aka the Visa Waiver Program, is pretty limited in what someone can do while they go to the U.S. for business purposes.

One would qualify for the B instead of H visa under certain requirements. The employee that is about to be sent to the United States must follow certain qualification requirements:

• Must be someone with a degree that is equivalent to a bachelor’s degree in the United States (some consular posts are more flexible when it comes to this)
• Must be a worker who is very skilled and meets the “specialty occupation” requirement of a normal H1B visa
• Must not be paid by any U.S. source directly
• Must stay employed at the foreign company while they stay in the U.S.

Difference Between a B1 and an H1B Visa

The two visas allow someone to enter the United States, but for different reasons. They also have different requirements. Here is what both of them are and how they’re different.

What Is a B1 Visa?

A B1 visa is given to people who want to enter the U.S. for business purposes. Under the B1 visa, one would be allowed to stay in the U.S. temporarily to conduct business. This is a visa that is going to help you if you want to either buy some materials or different supplies, hold business meetings, or attend conventions.

When you use this visa to stay in the U.S. for business, you can legally stay in the country for about 3 months. So, while you’re in the States, you’re expected to finish all your transactions during the legally allowed period. With the B1 visa, you can sign contracts, settle an estate, and negotiate business.

In order to be eligible for this visa, you must:

• Prove that you intend to stay in the U.S. for a limited period
• Prove that the reason for your trip for business in the U.S. is legitimate
• Show evidence that you are admissible in the U.S.
• Prove that you own a residence outside the U.S. that you don’t want to abandon, and that you have enough ties abroad that will make you return after you’re done making business
• Show that you have enough money to cover the expense of the trip, as well as your stay in the States

What Is an H1B Visa?

An H1B visa is a non-immigrant visa meant for people who want to work in the United States temporarily. The person who obtains this visa can stay in the U.S. for a period of three years but can extend it to six years.

Someone who wants to obtain this visa must:

• Have an unrestricted registration, state license, or certification that lets them practice the specialty occupation in the state where they want to work
• Own a U.S. bachelor’s or higher degree in the specialty occupation they want to work from an accredited college or university
• Have a foreign degree that is the equivalent to a U.S. bachelor’s or higher degree in the specialty occupation
• Have enough training, education, or experience in the specialty that equals completing such a degree

What Does the New BILOH Proposal Say?

People who may qualify for an H1-B visa might sometimes get a B1 business visa instead, which lets them perform business in the U.S. for a temporary period. This allows them to do business while they’re still employed in their home country.

However, the new proposal is to remove this option.

This will apply to those who are eligible to receive an H1B specialty occupation or an H-3 trainee visa. Someone who is under an H1-B visa for specialty occupation has prevailing wages starting from $40 per hour, whereas someone who comes in on BILOH may just get around $15 per hour.

This proposal also says that people who are petitioning and have athletic or entertainment professions are not eligible for the B1 visa. They have to apply for a P1 or an O1 visa if they wish to perform under the same professions.

What is happening at the moment is that the CBP is now checking whether this will have any effect on the local U.S. market before they think of offering a B1 visa to someone at the port of entry. This could include a B1 visa interview about job duties, wage levels, and more. People with a visa need to prepare their supporting documents for this.

Also, the filing fees for a B1 visa are much lower compared to the H1-B visa. This is why BILOH may end up being removed – it will help protect the revenue loss that the U.S. State Department is dealing with.

The B1 visa doesn’t have as much detailed scrutiny and elaborate evaluation as the H1-B visa does. Because of that, many people opt for a B1 visa instead. Still, if this new rule will be finalized, it will not revoke or even invalidate any of the current B1 visas under BILOH.

What Does the New Proposal Mean Moving Forward?

If the new proposal will pass, it means that there won’t be any foreign nationals getting into the U.S. under a B1 visa for an H1B or H3 service in the short-term. If someone wants to perform business and stay on foreign payroll still, they will have to independently qualify for a B1 visa for a reason outside the current B1 in lieu of H1B policy.

Whereas the DoS said that the already issued visas are not going to be rescinded, there may be some extra reviews done by the CBP at the ports of entry.

Conclusion

After the new proposal, many people who wanted to perform business in the U.S. using the BILOH service are worried that they will not be able to do this anymore. It’s not unknown that Donald Trump’s “Buy American, Hire American” act of 2017 is being pushed a lot, and it’s affecting a lot of foreigners who want to work in the U.S. If you want to apply for a B1 visa, you will have to do it independently and not under the B1 in lieu of the H1B visa program.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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