President Obama Holds Meeting on Immigration Reform

On April 19, President Obama assembled a bipartisan group of current and former government officials, law enforcement representatives, and business, faith and civic leaders, to gather their input regarding possibilities for immigration reform. A White House press statement about the meeting stated that the President encouraged participants to take a public role and solicit input from their communities about how immigration reform can be achieved.

As reported by CNN, the President remains committed to reform, although he recognizes that progress will not be easy given the politically divided Congress. Even before the Democrats’ losses in the 2010 Congressional election, substantial reform proposals made during President Obama’s term, such as the DREAM Act, have been unsuccessful. USA Today reports that the President favors legislation that would simultaneously increase border security and offer current illegal immigrants a path to citizenship, although some Republican lawmakers contend that this would reward lawbreakers. 

USCIS Issues Two Binding Precedent Appeals Decisions

United States Citizenship and Immigration Services (USCIS) has announced that two decisions from its Administrative Appeals Office (AAO) will be binding precedent for the agency, i.e., USCIS must follow the decisions’ holdings when evaluating future petitions. AAO precedent decisions result from a collaboration between the Department of Homeland Security and the Department of Justice. The two decisions are not new, having been decided in 2005 and 2006, but it was not until October 20, 2010, that both were deemed binding.

The first decision, Matter of Al Wazzan (pdf), affirms USCIS’s denial of an application to adjust status to permanent residence and holds that an employment-based petition must be "valid" initially if it is to "remain valid with respect to a new job."

The second decision, Matter of Chawathe (pdf), reverses USCIS’s denial of an application to preserve residence for naturalization purposes and clarifies the definition of employment by an "American firm or corporation."

Matter of Al Wazzan

In Matter of Al Wazzan, 25 I&N Dec. 359 (AAO 2010) [initially decided Jan. 12, 2005], the applicant’s employer filed an initial immigrant visa petition in 1998, which the director denied on February 2, 2000. An appeal was dismissed on January 8, 2001. The employer filed a second petition on August 26, 2002, and the applicant filed an application for adjustment of status on September 18, 2002 – both were denied over one year later, in August and September 2003, respectively.

The applicant argued that the director erred in denying his application for adjustment of status because resolution took over 180 days. This argument was based on a 2000 amendment to 8 U.S.C. § 1182(a)(5)(A)(iv), which stated that:

A petition . . . for an individual whose application for adjustment of status . . . has been filed and remained unadjudicated for 180 days or more shall remain valid with respect to a new job if the individual changes jobs or employers if the new job is in the same or a similar occupational classification as the job for which the petition was filed.

The applicant contended that the petition became “valid” if the agency did not resolve the matter within six months. The AAO noted that this interpretation would have immigration courts “construe the term ‘valid’ to include denied or unadjudicated petitions.”

The AAO found no basis for the applicant’s interpretation. After examining the statute’s plain language, legislative history, prior immigration decisions, and recognizing that petitions could only be approved after USCIS investigated a petition and determined eligibility, it concluded that it “would be irrational to believe that Congress intended to throw out the entire statutorily mandated scheme regulating immigrant visas whenever that scheme requires more than 180 days to effectuate.”

Concerning petitioner’s argument that the legislative intent was to alleviate immigration petition backlogs, the AAO held this interpretation “would create a situation where ineligible aliens would gain a ‘valid’ visa simply by filing frivolous visa petitions and adjustment applications, thereby increasing USCIS backlogs, in the hopes that the application might remain unadjudicated for 180 days.”

Accordingly, because the applicant’s visa petition had been properly denied, the applicant was ineligible to have his immigration status adjusted and denial of the applications was proper.

Matter of Chawathe

The primary question presented in Matter of Chawathe, 25 I&N Dec. 369 (AAO 2010) [initially decided Jan. 11, 2006], was “whether a publicly traded corporation may be considered an ‘American firm or corporation,’ [for immigration law purposes]... when its stock ownership is widely dispersed and there is no readily available means to determine the nationality of its owners.”

In Chawathe, the applicant was a U.S. permanent resident who intended to apply for U.S. citizenship, but would be working overseas for between two to three years. To qualify for citizenship, the applicant would need to reside continuously in the U.S. as a lawful permanent resident for the five years prior to filing an application, and be physically present in the United States for at least half of the residency period. However, the law provides that no period of absence from the United States will break the residency continuity if the individual was: (1) physically present and residing in the U.S., after gaining permanent residency, for an uninterrupted one-year period; and (2) employed by an “American firm or corporation” or subsidiary thereof.

Seeking to preserve his U.S. residency, the applicant filed the required preservation of residency petition. The director denied the petition based on two determinations: (1) that the applicant did not work for an American firm or corporation; and (2) that the applicant’s temporary overseas employer did not qualify as a subsidiary of an American firm or corporation. The applicant appealed both determinations.

American Firm or Corporation

The AAO held that a company’s incorporation in a U.S. state does not in itself establish the entity as an American firm or corporation. To qualify, more than 50% of the company must be owned by American citizens. In Chawathe, proving ownership would be an onerous task: the applicant’s employer was a publicly-traded company on the New York and San Francisco stock exchanges that could issue 4.1 billion shares, so the applicant would need to demonstrate that American citizens owned more than 2.05 billion shares. Understanding the difficulty of tracing nationalities and ownership interests of public companies, the AAO found it “reasonable to presume” a public company qualified as an American firm or corporation for immigration law purposes if the company was both incorporated in the United States and traded its stock exclusively on U.S. stock markets.

Subsidiaries

The AAO also concluded that the applicant had demonstrated that his temporary overseas employer was a subsidiary of an American firm or corporation. The temporary overseas employer was listed as a subsidiary in the company’s Securities and Exchange Commission (SEC) filings. Moreover, the applicant provided a letter from the American company’s Assistant to the President stating that the temporary overseas employer was a wholly-owned subsidiary, and that although the applicant would be working for the temporary overseas employer for two to three years his salary would be paid by the American company. The AAO held that, although the applicant could have provided more probative evidence of the temporary overseas employer’s subsidiary status, the SEC filing and corporate letter established, by a preponderance of the evidence, that the temporary overseas employer was a wholly-owned subsidiary of the applicant’s American employer. Because qualifying for citizenship based on permanent resident status only required the applicant to prove his eligibility by a preponderance of the evidence (compared to the heightened standard of “clear and convincing evidence” for petitions based on marriage), he provided sufficient evidence for the director to conclude that “more likely than not” the applicant satisfied his burden of proof.

Accordingly, the AAO sustained the appeal, finding the employer an American firm or corporation and the temporary overseas employer a qualifying subsidiary, and concluding that the applicant met the requirements for preserving his U.S. residency while abroad.

Senator Hatch's Immigration Bill Focuses on Enforcement

Senator Orrin Hatch (R-UT)On September 29, 2010, Senator Orrin Hatch (R–UT) introduced the “Strengthening Our Commitment to Legal Immigration and America’s Security Act” (S.3901) (pdf). The bill is the third notable piece of immigration legislation introduced last week, together with the comprehensive immigration reform bill introduced by Senators Menendez and Leahy, and Senator Chambliss’ HARVEST Act (relating to agricultural workers). Senator Hatch’s bill addresses numerous immigration enforcement topics, and notable provisions include:

  • Illegal aliens could only be paroled or granted deferred action on a case-by-case basis (for urgent humanitarian reasons or significant public benefit). Mass paroles and deferrals would be prohibited.
  • Any state, county, city, or township that is eligible to participate in the Secure Communities program or to cross-designate local law enforcement officers to perform immigration law enforcement functions under section 287(g) (pdf) and does not participate in such programs may not receive compensation for incarceration expenses of illegal aliens.
  • Individuals known or reasonably believed to be members of a known criminal organization regularly engaged in transnational criminal activity would be ineligible for visas.
  • Elimination of the Diversity Visa Program, unless Congress signs off on changes designed to combat fraud and eliminate abuse in the program.
  • Annual reporting by the Secretary of Health and Human Services on welfare benefits provided to states, and the portion thereof provided to illegal immigrants.
  • Limiting states’ expansion of the Children’s Health Insurance Program (CHIP) coverage to noncitizen children or noncitizen pregnant women.
  • Requiring the IRS to notify Social Security number holders if the agency suspects fraudulent use of their number for employment verification purposes.

Obama Urges Republicans to Help Pass Immigration Bill

Although some contend a comprehensive immigration bill is not probable as midterm elections near, President Obama has urged Republican lawmakers to work with Democrats in passing a law that would create an “orderly, fair, humane immigration framework in which people are able to immigrate to this country in a legal fashion,” reports Reuters. President Obama’s request followed his ordering 1,200 National Guard troops to Arizona’s border with Mexico, which he contends will not alone solve the problem.

The troop deployment was met with mixed reviews. Senator John McCain (R-AZ) contends that a deployment of at least 6,000 troops is necessary. Some view the move as an attempt by the president to show Republicans and centrist Democrats that he is serious about immigration, while certain Latino activists contend that it is merely a political gesture and will only negatively impact their community.

Senate Unlikely to Address Immigration Reform Before Memorial Day

The Hill reports that, although Senator Harry Reid (D-Nev.) has been focusing on immigration reform on the campaign trail during the past few weeks, he predicts that the Senate will not address the issue until after Memorial Day. Instead, he stated that the Senate’s focus during the coming several weeks will be on legislation concerning jobs, food safety, campaign spending and financial regulation, as well as on moving forward with a number of stalled Presidential nominees.

Proposed Legislation Would Require E-Verify Checks on Some Applicants for Mortgage Modifications

Rep. Kenny Marchant (R-TX) introduced the Mortgage E-Verify Act (H.R. 4586), which requires that mortgagors’ legal immigration status be confirmed by E-Verify as a condition for modification of home mortgage loans issued by Freddie Mac and Fannie Mae, or insured by the Federal Housing Administration. The bill aims to curb mortgage fraud, particularly by illegal immigrants. Mortgage fraud increased 1,411% from 1997 to 2005, according to the U.S. Treasury Department’s Financial Crimes Enforcement division.

Status of Immigration Reform Remains Uncertain

In his 2010 State of the Union address, President Obama devoted only a single sentence to immigration reform. As reported by The Washington Post, this cursory treatment of the issue has led to “disillusionment” among immigration advocates. A staple of Obama’s campaign and early-term rhetoric, immigration reform has taken a back seat to health care reform and other issues, such as job creation.

Following the address, a senate lobbyist opined that immigration reform was “deader than a doornail.” Many believe Congress will not act to further the interests of immigrants when unemployment remains high, especially with mid-term elections approaching. However, others are more optimistic about the chances for legislation, arguing that the foundation for reform was laid in previous Senate sessions and that, if health care reform does not pass, immigration reform could be a legislative accomplishment to show voters.

Bill Would Ban Use of Foreign Labor After Mass Layoffs

Senators Bernie Sanders (I-Vt.) and Charles Grassley (R-Iowa) have introduced legislation that would prevent large companies that conduct mass layoffs from hiring foreign labor through guest worker programs. The Employ America Act (S. 2804) (pdf) builds on similar prohibitions included in the American Recovery and Reinvestment Act (ARRA or “Economic Stimulus”), which prevents companies receiving funds through the Troubled Asset Relief Program (TARP) from replacing laid-off citizen workers with foreign labor. Continue reading about this development on Littler's Washington D.C. Employment Law Update blog.
 

H-1B Visa Remains Hot Topic, Even as Applications Decrease

Even with a considerable decrease in H-1B visa applications during the past year (nearly 20,000 visas remain available for 2009, whereas in 2008 over 163,000 applications were submitted within days of the entry period opening), issues surrounding the H-1B program remain very visible, so much so that Computerworld.com has issued a “10 top H-1B stories” list for fiscal year 2009. The following stories made the list:

  1. The H-1B and L-1 Visa Reform Act of 2009. The bill would limit, to 50%, the percentage of visa holders a company could employ in its U.S. workforce.
  2. Comprehensive Immigration Reform. Senator Charles Schumer (D-NY), chair of the Immigration, Refugees and Border Security subcommittee, is pushing for reform and supports the H-1B program. At a subcommittee hearing, former Fed Chairman Alan Greenspan spoke in favor of the H-1B visa.
  3. TARP. Congress placed H-1B restrictions on banks receiving bailout money.
  4. USCIS’s Increased Enforcement Efforts. Reports indicate that 20% of H-1B applications have problems, including fraud.
  5. H-1B and Wages. A New York University / University of Pennsylvania study found evidence that H-1B workers reduced tech wages by as much as 6%.
  6. The Recession. The economic downturn impacted the number of H-1B applications, particularly in the past few months.
  7. Department of Justice Charges. The department filed complaints alleging H-1B fraud against a dozen individuals and companies, which some claim was the largest H-1B enforcement action ever taken by the federal government.
  8. The Obama Administration. The President has appointed many H-1B supporters. Officials include IT industry leaders who benefit from the program and have argued for the end of H-1B visa restrictions.
  9. Legal Challenges. Tech workers challenged President George W. Bush’s decision to extend (from 12 months to 29 months) the duration of student visas, alleging it created a vehicle to side-step H-1B restrictions.
  10. The Shrinking IT Job Market. The H-1B visa program is central to the debate about the effects of globalization on the technology job market.

Napolitano Says Immigration Reform Remains a Priority

The Dallas Morning News reports that Homeland Security Secretary Janet Napolitano remains optimistic that Congress eventually will pass a bipartisan immigration-policy overhaul bill. However, because the White House and Congress are consumed with healthcare legislation, Napolitano could not predict when a bill would be introduced. Nevertheless, she believes the process will be less contentious than previous attempts during the Bush administration.

Napolitano stated that immigration legislation needs to focus on the following:

  • Developing or strengthening penalties for employers that repeatedly hire illegal immigrants;
  • Countering new tactics used by human traffickers and money launderers to exploit the border;
  • Developing programs that allow seasonal workers to enter the U.S. legally; and
  • Updating the visa process so that students with skills needed by the U.S. can remain in the country.

Napolitano expressed her opposition to amnesty, stating that she favors an approach allowing illegal immigrants to pay fines and taxes without incurring criminal liability.