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The U.S. District Court for the Western District of New York has determined that the Fair Labor Standards Act requires employers to reimburse foreign H-2B visa workers for certain expenses paid by the workers if, after subtracting the costs from the workers’ wages, the workers’ effective net salary would fall below minimum wage. To learn more about the decision and its implications for employers, please continue reading at Littler's Wage and Hour Counsel blog.

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Two bills introduced in both the House and Senate last week would make significant changes to the H-2B guest worker program. Both the Increasing American Wages and Benefits Act of 2010 (S. 2910) introduced in the Senate, and the H-2B Program Reform Act of 2009 (H.R. 4381) introduced in the House of Representatives, would establish new procedural and monetary requirements for employers that seek to hire temporary foreign workers, as well as impose stiffer penalties for noncompliance with these new requirements. Continue reading about this development on Littler's Washington D.C. Employment Law Update blog.
 

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Last week Assistant Senate Majority Leader Richard Durbin (D-Ill.) and Sen. Charles Grassley (R-Iowa) introduced legislation that would completely reform the H-1B and L-1 visa guest worker programs. The H-1B and L-1 Visa Reform Act (S. 887) aims to close perceived loopholes in the programs that critics argue allow foreign workers to displace qualified Americans seeking the same employment.  Continue reading this entry on Littler's Washington DC Employment Law Update blog.

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Leaders of the AFL-CIO and Change to Win labor federations have announced a proposed framework for reforming the U.S. immigration system, a key feature of which is the formation of an independent commission to evaluate how many immigrants should be admitted to fill temporary and permanent jobs without displacing U.S. workers. As reported in The Wall Street Journal, the unions contend that the current visa levels are outdated and often keep immigrant workers in temporary status, with fewer benefits and job protections. Business groups, however, argue that temporary worker programs do not put immigrant workers at a disadvantage and are effective. In particular, business groups argue that temporary worker programs are essential to filling labor-intensive, low-skill jobs (such as in the agricultural sector).

The announcement of the proposed framework could lead to renewed debate of immigration issues and provide the Obama administration and congressional Democrats with additional leverage for introducing legislation.

The proposed framework is based on a new report, “Immigration for Shared Prosperity,” written by former Labor Secretary Ray Marshall in coordination with the Economic Policy Institute, a liberal think tank in Washington.
 

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As reported in the Herald Sun, Immigration Minister Chris Evans stated that the global economic crisis is greatly reducing Australia’s need to import foreign workers. Less than 12 months ago Australia was struggling with a skills shortage, but now the country’s unemployment rate is on track to hit 7 % in 2010. A final decision on the 2008-09 immigration intake will be made by Cabinet ahead of the May Budget.

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The United Kingdom’s Home Secretary, Jacqui Smith, has announced three significant changes intended to support domestic workers and raise the bar for foreign workers wishing to enter the country. As of April 1, the UK government will:

• strengthen the resident labor market test for tier two skilled jobs so that employers must advertise jobs to resident workers before bringing in a worker from outside Europe;
• use each shortage occupation list to trigger skills reviews that focus on training resident workers for these occupations; and
• tighten new criteria against which highly skilled migrants seeking entry to the United Kingdom are judged, by raising the educational qualifications and salary required for tier 1 (General) of the points-based system.

Home Secretary Smith said: 

“Just as in a growth period we needed migrants to support growth, it is right in a downturn to be more selective about the skill levels of those migrants, and to do more to put British workers first.”

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The UK Border Agency has temporarily reinstated the skilled worker category for representatives of overseas newspapers, news agencies and broadcasting organizations. The skilled worker category is one of several being deleted as part of the changes to the United Kingdom's immigration system. The reason for the temporary reinstatement is that, although most representatives of overseas newspapers, news agencies and broadcasting organizations will be eligible to apply under tier two of the new points-based system, a small number of individuals may not be eligible because they do not have a sponsor based in the United Kingdom. The Border Agency will introduce a more permanent solution later in 2009 so that representatives whose employers are not established in the United Kingdom can apply under tier two.

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Australia’s government has released draft regulations outlining new sponsorship obligations for employers of temporary skilled overseas workers who hold Subclass 457 visas. The Subclass 457 visa program is an uncapped scheme driven by market demand for employers to sponsor skilled overseas workers for up to four years.

A panel of industry, union and state government representatives will be assessing the proposed new regulations and will provide feedback to government. Proposed employer obligations to be considered by the panel include:

• Payment of a minimum salary to Subclass 457 visa holders;
• Payment of return travel costs for visa holders and their spouses; and
• Cooperating with inspectors exercising powers under the Worker Protection Act.
   

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For the first time in 20 years, the H-2A guest worker program for agricultural employees is slated for reform. On Dec. 11, the Department of Labor (DOL) and Department of Homeland Security (DHS) issued final rules regarding the hiring of foreign agricultural workers, ostensibly to streamline the hiring process of these temporary and seasonal employees. Continue reading entry on Littler's Washington DC Employment Law Update blog.

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