H-1B & L-1 Visa Fee Increases Take Effect

Passport StampU.S. Citizenship and Immigration Services (USCIS) announced that, as of August 13, 2010, H-1B and L-1 visa application fees increased by $2,000 and $2,250, respectively, for certain businesses. The fee increases, as previously discussed, are mandated by the recently enacted border security law (Public Law No. 111-230) (pdf). Accordingly, petitioning businesses with 50 or more employees in the United States and with 50% or more of its employees in the United States on H-1B or L visas must submit the additional fees:

  • initially to grant an alien nonimmigrant status described in subparagraph (H)(i)(b) or (L) of section 101(a)(15); or
  • to obtain authorization for an alien having such status to change employers.

USCIS is currently updating the Petition for a Nonimmigrant Worker (Form I-129) to comply with the new law. Moreover, USCIS recommends that petitioners include the additional fee(s) in their application packet(s) or include a statement or other evidence demonstrating why the fee does not apply. If USCIS does not receive the additional fee or a statement or evidence of why the additional fee does not apply, it may issue a Request for Evidence to determine whether, in fact, the new law applies to the petitioner.

New Border Security Law Sparks Diplomatic Talks and Offshoring Concerns

Passport StampComputerworld reports that the United States government is reviewing whether the recently-enacted border security law, funded through increased H-1B and L-1 visa application fees for certain foreign-owned companies, runs afoul of World Trade Organization rules, as the law’s opponents and India’s Commerce Secretary contend. However, the issue was only briefly addressed in a recent U.S. Department of State press briefing during which a spokesperson confirmed that discussions about the law were being held between U.S. and Indian officials. Some suggest that the law could increase Indian companies’ U.S. operating costs by $250 million per year.

In a separate article, Computerworld reports that the law has caused rare consensus among H-1B visa advocates and opponents. Individuals on both sides contend that the bill will not create IT jobs for Americans. They suggest that targeted companies—foreign entities operating in the U.S. whose workforce is 50% or more foreign—can easily shift operations to Canada or Latin America. Finally, there are concerns that the fees’ generated revenue is misdirected, and that the funds should be used to spur innovation in the U.S. technology industry rather than to increase law enforcement operations at the United States’ southwestern border.

Senate Approves $600M Border Protection Bill Financed by Increased Employment Visa Fees

During a special session held this morning, the Senate passed a $600 million spending bill (pdf) that will increase law enforcement presence at the United States’ southwestern border with Mexico and will finance additional aerial drones and construction of two operating bases. The Senate passed an identical bill (S. 3721) on August 5 before adjourning for recess, but for technical reasons the Senate needed to approve the version of the bill approved by the House of Representatives on August 10 before sending it to President Obama for signature.

The spending measure will be financed by increasing visa application fees on businesses with 50 or more employees in which more than 50% of the workforce holds an H-1B or L visa; specifically:

  • the L visa application fee will increase by $2,250; and
  • the H-1B visa application fee will increase by $2,000.

A major target of the increased fees are foreign-owned businesses whose workforces are largely comprised of foreign workers. Some contend these businesses are finessing regulations in a way that violates the spirit of U.S. immigration laws. Opponents of the bill include India’s high tech industry, which maintains a strong presence in the United States and benefits from both visa programs. As reported by the New York Times, industry representatives claim that the fee increases are being levied discriminatorily and violate international trade practices.

USCIS Releases Updated FY 2011 H-1B Visa Petition Numbers

United States Citizenship and Immigration Services (USCIS) has released updated H-1B visa numbers for Financial Year (FY) 2011: 20,800 H-1B regular cap petitions and 8,700 H-1B Master’s Exemption petitions have been filed as of May 28, 2010. As discussed previously, initial filing numbers were impressive, with 19,000 petitions submitted in the first week. Since then, however, per week filings have decreased in volume.

65,000 H-1B regular cap visas and 20,000 H-1B Master’s Exemption visas are available for FY 2011.

Updated Numbers Released for Fiscal Year 2011 H-1B Visas

U.S. Citizenship and Immigration Services announced that, as of April 22, 2010, it has received 16,025 H-1B Regular Cap and 6,739 H-1B Master’s Exemption petitions for Fiscal Year 2011 (October 1, 2010 to September 30, 2011). Petition filing slowed after an active first week in which over 19,000 petitions were submitted. In weeks two and three, combined, only 2,525 Regular Cap and 1,139 Master’s Exemption petitions were filed.

USCIS Continuing to Accept Fiscal Year 2011 H-1B Petitions

U.S. Citizenship and Immigration Services (USCIS) announced that it is continuing to accept H-1B nonimmigrant visa petitions for Fiscal Year 2011 (October 1, 2010 to September 30, 2011). The agency began accepting petitions on April 1, 2010, and after one week had received approximately 13,500 petitions subject to the general cap and 5,600 petitions subject to the advanced degree exception. It took approximately nine months for USCIS to receive enough applications to meet the FY 2010 cap, with the bulk of petitions being filed by the end of October 2009.

The H-1B program allows businesses to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields, e.g., science, engineering, computer programming. The program allows for 65,000 regular-cap visas, and an additional 20,000 visas for petitioners with advanced degrees (master’s degree or higher).

Implications of USCIS Memo on H-1B Employment Relationship Requirements

The United States Citizenship and Immigration Services (USCIS) recently issued a guidance memo to its adjudication officers, Determining Employer-Employee Relationship for Adjudication of H-1B Petitions, Including Third Party Site Placements. The Memo clarifies what constitutes a valid employer-employee relationship in the context of petitions for H-1B visas, which are commonly used by IT staffing agencies and consulting groups for placing skilled workers at third-party worksites. For an analysis of the Memo and its implications for employers, continue reading Littler's ASAP Recent USCIS Memo on Employer-Employee Relationship Requirements for H-1B Visa Petitions: Regulation by Memorandum? by Jorge R. Lopez, Shin-I Lowe and Neil Grindstaff.

USCIS Memo Outlines Employer-Employee Relationship for H-1B Purposes

The United States Citizenship and Immigration Services’ (USCIS) Associate Director for Service Center Operations has issued a detailed memo (pdf) regarding how to determine, when evaluating H-1B visa petitions, whether an employer-employee relationship exists and will continue to exist. The memo, which is addressed to USCIS Service Center Directors, discusses:

  • scenarios that do and do not represent a valid employer-employee relationship;
  • documentation to establish the employer-employee relationship;
  • requests for evidence to establish the employer-employee relationship; and
  • regulatory compliance.

Prevailing Wage Determinations to Be Processed in D.C.

The U.S. Department of Labor has provided notice that beginning January 1, 2010, the Office of Foreign Labor Certification National Prevailing Wage and Helpdesk Center in Washington, D.C. will receive and process prevailing wage determination requests for use in H-1B, H-1B1, H-1C, H-2B, E-3 and permanent labor certification programs. In the same notice, the DOL provides guidance about prevailing wage determinations for applications in the Commonwealth of the Northern Mariana Islands, which have been accepted at the center since November 28, 2009.

Fiscal Year 2010 H-1B Cap Has Been Reached

U.S. Citizenship and Immigration Services (USCIS) has announced that, as of December 21, 2009, it has received sufficient petitions to reach the statutory cap for fiscal year 2010. Also, USCIS has received more than 20,000 H-1B petitions on behalf of applicants exempt from the cap under the advanced degree exemption. USCIS will apply a computer-generated random selection process to all petitions that are subject to the cap and were received on December 21, 2009. Employers should note that even those petitions that were filed before the cap closed may be returned by USCIS once the final cap count is completed.

New H-1B cap-subject petitions cannot be filed until April 1, 2010 for an October 1, 2010 start date. Employers should start assessing alternative visa options for affected foreign nationals right away.

In addition, employers who have hired graduates from U.S. schools should keep in mind that they may be able to take advantage of the “cap-gap” provision or STEM provision to continue the employment of those graduates in the absence of H-1B numbers.

H1-B Cap Count: Lottery System Possible on Final Receipt Date

It is expected that the H-1B cap will be reached this week, if it has not been reached already. USCIS announced on December 17 that, as of December 15, 64,200 of the available 65,000 H-1B numbers for this year had been used. The agency will notify the public once it has received the necessary number of petitions to meet the H-1B cap, known as the “final receipt date.” To ensure a fair system, USCIS will, if needed, implement a lottery system to randomly select the number of petitions required to reach the numerical limit from the petitions received on the final receipt date.

New H-1B cap-subject petitions cannot be filed until April 1, 2010 for an October 1, 2010 start date. Employers should start assessing alternative visa options for affected foreign nationals right away.

In addition, employers who have hired graduates from U.S. schools should keep in mind that they may be able to take advantage of the “cap-gap” provision or STEM provision to continue the employment of those graduates in the absence of H-1B numbers. The cap-gap provision will allow graduates who have Optional Practical Training (OPT) employment authorization that is valid on the date an H-1B cap-subject petition is filed (April 1, 2010 or later) to continue working through the date the approved H-1B becomes effective (which will be October 1, 2010). The STEM provision allows graduates who have OPT employment authorization based on a degree earned in a listed science, technology, engineering or math program to apply for a 17-month extension of their employment authorization, if their employer is enrolled in E-Verify. Employers will have to balance the risks and benefits of E-Verify participation when determining whether to take advantage of this provision.

This entry was written by Aimee Clark Todd.

H-1B Cap Count: 1,000 Used in Two Days

The U.S. Citizenship and Immigration Services has indicated that nearly 62,500 of the available 65,000 H-1B cap-subject petitions have been used for the current fiscal year. Further, it appears that the demand for such H-1B petitions has been increasing in recent weeks, with approximately 1,000 petitions being utilized in the two days prior to the government's most recent tally, which was posted on December 10, 2009. In the prior week, 2,200 petitions were filed. With this trend appearing to continue, it is anticipated that the H-1B cap will be reached within the next week.

H-1B Cap for FY2010 Almost Reached

The United State Citizenship and Immigration Services (USCIS) announced that, as of December 10, 2009, 62,500 H-1B petitions had been filed for fiscal year 2010, inching closer to the general H-1B cap of 65,000. Although the H-1B cap of 20,000 for petitioners with advanced degrees already has been reached, USCIS will continue to accept those applications until the general cap is met.

This blog previously noted the recent rise in application filings after months of stagnation. Some observers predict that the cap may be reached in days, or by early 2010, according to Computerworld.com. The application surge, which began in October, has been attributed to increased seasonal demand and college hiring for various positions (in fields such as IT, education, and engineering), and also to re-filing of previously denied applications.

DHS Releases Semiannual Regulatory Agenda

The Department of Homeland Security (DHS) has released its Semiannual Regulatory Agenda (pdf) for the coming year. Rules addressing the H-1B lottery process and I-9 forms are among the Agency’s regulatory priorities. Continue reading about this development on Littler's Washington D.C. Employment Law Update blog.
 

Filings of H-1B Cap-Subject Petitions Are on the Upswing

It appears that the economy continues to show signs of recovery. U.S. Citizenship & Immigration Services (USCIS) announced that it had received approximately 2,000 H-1B cap-subject petitions in a week. This brings the number of filed H-1B cap-subject petitions to about 58,900. This leaves approximately 6,000 H-1B petitions remaining from the 65,000 general H-1B cap. The 20,000 H-1B advanced degree exemption closed several weeks ago. As reported previously on this blog, employers should immediately assess whether they have any H-1B needs--including whether to file H-1B petitions for F-1 students working pursuant to OPT status early, as well as other candidates who may require H-1B processing--as next year the cap may be reached early if the economy continues to improve.

This entry was written by Ian Macdonald.

USCIS Temporarily Accepting H-1B Petitions with Proof of Timely Filing of Labor Condition Application

U.S. Citizenship and Immigration Services (USCIS) recently announced that it would temporarily accept H-1B petitions for filing without a certified Labor Condition Application (LCA) from the Department of Labor (DOL). This action is being taken in response to public pressure and to the USCIS Ombudsman’s recommendation that USCIS reinstate its practice of accepting an H-1B petition with evidence of a timely filed LCA with DOL. USCIS had affirmed this practice in 1992, and then again in 2001. USCIS has granted this accommodation for a 120-day period, starting November 5, 2009 and ending March 4, 2010.

This temporary processing modification by USCIS will provide welcome relief to employers experiencing delays associated with obtaining LCA certification through the DOL's iCert online filing system. Employers will now be able to meet filing requirements, preserve the legal status of employees, and avoid employment interruptions while DOL resolves LCA processing challenges through its iCert system.

To qualify for this exception, an employer must show that an LCA has remained uncertified for at least seven days from the date of filing. USCIS will reject all filings that do not meet this seven-day rule. In order to prove compliance with this rule, H-1B petitions must include a copy of the DOL's email providing notice of receipt of the LCA.

When an H-1B petition is filed pursuant to this temporary accommodation, USCIS will issue a Request for Evidence (RFE) requesting a copy of the certified LCA. USCIS has stated that employers will only be given 30 calendar days to respond to the RFE with a copy of the certified LCA. Failure to provide a certified LCA within this period of time will result in a denial of the H-1B petition.

Ideally, the DOL will resolve the delays and erroneous denials associated with certifying LCAs before March, 4, 2010, when the temporary USCIS accommodation ends, particularly as the FY2011 H-1B cap opens just a few weeks later (on April 1, 2010).

This entry was written by Ian Macdonald.

Thousands of H-1B Visas Available Despite Recent Increase in Demand

The Wall Street Journal reports that thousands of H-1B visas for fiscal year 2010 remain available. Unlike previous years, when the 65,000 visas available for the year were scooped up by employers within days, factors such as the sagging economy and government investigations into visa fraud have resulted in companies underutilizing the program. Not since 2003—when 323 days elapsed before all fiscal year 2004 H-1B visas were awarded—have visas remained available at such a late stage.

However, in an indication that employers are slowly moving out of the economic crisis, the United States Citizen and Immigration Service (USCIS) recently released updated numbers indicating that the demand for H-1B cap-subject petitions increased significantly during October 2009.

With respect to government investigations into visa fraud, the USCIS fraud unit is expected to conduct surprise inspections of up to 20,000 companies in the coming months. The inspections will focus on whether H-1B employees are performing their jobs in accordance with the visa’s specified terms. 

USCIS Announces Updated H-1B Cap Count for Fiscal Year 2010

US Citizenship and Immigration Services (USCIS) has announced that as of October 30, 2009, approximately 53,800 H-1B cap-subject petitions had been filed and received. It also announced that the 20,000 H-1B Advanced Degree Exemption cap had been met, and that all petitions filed for an individual with an advanced degree from a US academic institution will now be counted towards the general H-1B cap of 65,000. 

While the current annual H-1B cap is 65,000, it should be noted that 6,800 visas are set aside from the cap each year for the H-1B1 program that grants status to nationals of Chile and Singapore in accordance with Free Trade Agreements with each of these countries. This reduces the general H-1B cap to 58,200. Unused numbers in this pool of 6,800 visas are then applied to the general H-1B cap for use during the next fiscal year. USCIS has applied approximately 6,000 unused numbers from last year’s H-1B1 pool to this year's general H-1B cap. As such, even though 6,800 were subtracted from this year’s 65,000 cap, the unused numbers from last year’s pool have boosted available H-1B numbers to just under 65,000.

Last month, the demand for H-1B cap-subject petitions increased significantly to 6,100, which may be an indication that employers are slowly moving out of the economic crisis. Based on the increased demand for H-1B petitions and the closure of the 20,000 advanced degree exemption, it is anticipated that the H-1B cap will be met within the next 30-45 days. Consequently, employers should assess hiring needs immediately and expedite the filing of any H-1B cap-subject petitions before the cap closes. The next H-1B cap will open up for filing purposes on April 1, 2010 for H-1B petitions with a October 1, 2010 start date, so employers could face serious challenges in hiring highly-skilled professionals once this year's cap closes.

This entry was written by Ian Macdonald.

USCIS Ombudsman Makes Recommendations Regarding H-1B Filings Stalled by Wrongly Denied Labor Conditions Applications

The U.S. Citizenship and Immigration Services (USCIS) Ombudsman has discovered (pdf) that iCert, the certification process for Labor Conditions Applications (LCA) operated by the Department of Labor, has been generating false mismatches of Federal Employer Numbers. After examining applications filed between April and August 2009, the Ombudsman found that 7% of denials (approximately 2,900 applications) were incorrect. These errors can hinder the ability to timely file original or extension H-1B visa petitions.

Currently, USCIS requires that petitioners include a certified LCA with their H-1B petitions, although the controlling statute, the Immigration Nationality Act, does not require this.

To remedy the situation, the Ombudsman made the following recommendations:

  • reinstate USCIS’ previous practice of temporarily accepting an H-1B petition with proof of timely filing of an LCA with DOL, and issue a Request for Evidence requiring the petitioner to later provide the certified LCA; and
  • establish a temporary policy under which USCIS would excuse late H-1B filings where the petitioner has documented an LCA submission to DOL that was improperly rejected.
     

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.

IT Firms Look to NAFTA to Offset Proposed Limit on H1-B Visas

Anticipating greater restrictions on H1-B visas, Indian IT firms operating in the United States are considering utilizing NAFTA provisions to avoid staffing shortages. The strategy arose in response to proposed U.S. legislation that would, among other provisions, limit the number of employees on H1-B visas in a company to 50% of its total U.S. workforce. Indian IT firms would be impacted because the majority of their U.S. staff work under H1-B visas. 

Design by Alex Covarrubias

As reported by Computerworld, instead of sending Indian professionals to the U.S., they would go to Mexico, and Mexican employees would work in the United States under a TN professional visa, which is easier to obtain than the H1-B. No limit applies to TN visas; they are valid for three years, and they are renewable.

Requests for Evidence in Relation to H-1B and Green Card Applications Sharply Increasing

The H-1B and permanent residency programs are, as reported by Computerworld, under “assault” by the US Citizenship and Immigration Services and other agencies, which have “dramatically increased” the documentation requested of employers seeking to hire workers under the programs. In recent months, requests for evidence are becoming significantly more frequent and expansive, seeking information such as corporate payroll records, zoning maps and building fire-safety plans. 

Among the possible explanations for the stepped-up enforcement are the increased scrutiny required as part of the Troubled Asset Relief Program (which set new H-1B restrictions on firms that received bailout funds) and findings of various problems, including fraud, in nearly one in five H-1B applications (according to a USCIS study (PDF) released in fall 2008).

Crystal Williams, co-director of the American Immigration Lawyers Association (AILA), commented that the document requests are "on the border of harassment," and that the agency is "attempting to build a barrier, to make it as difficult as it possibly can be to get a visa." AILA is gathering evidence to demonstrate that the government is overstepping its authority in this area.

Clinton Comments on Role of H-1B Visa Program in U.S./India Relations

Secretary of State Hillary Clinton, speaking before the U.S.-India Business Council, outlined her plans for a “dramatic expansion” in U.S./India relations and touched upon concerns voiced by the Indian IT community and the Indian government that proposed restrictions on the H-1B visa program are a form of protectionism. As reported at Computerworld.com, Clinton remarked that both countries should "work through any issues in our relationships and differences in our perspectives by focusing on shared objectives and concrete results." Meera Shankar, India's ambassador to the United States, stated that India's IT talent has helped U.S. firms become more competitive globally, while also stimulating the U.S. economy by creating jobs and increasing profits.

USCIS Updates H-1B Petition Numbers for Fiscal Year 2010

U.S. Citizenship and Immigration Services (USCIS) has announced that, as of June 19, 2009, approximately 44,500 H-1B cap-subject petitions and approximately 20,000 petitions qualifying for the advanced degree cap exemption had been filed. USCIS will continue to accept both cap-subject petitions and advanced degree petitions until a sufficient number of H-1B petitions have been received to reach the statutory limits, taking into account the fact that some of these petitions may be denied, revoked, or withdrawn.

Leader of Indian Software and IT Industry Association Visits Washington, D.C. to Discuss Immigration Policy

Som Mittal, president of Nasscom, the industry association representing Indian software and IT services firms, recently met in Washington, D.C. with various U.S. government officials and representatives of trade organizations. In an interview with InformationWeek, Mittal stated that he was in D.C. "to provide perspective on the Durbin-Grassley bill," bipartisan legislation aimed at preventing abuse and fraud in the H-1B and L-1 visa programs. Based on his meetings, Mittal said he thinks that the Obama administration and Congress are likely to consider H-1B and L-1 provisions as part of broader immigration reforms, perhaps later this year.

Mittal also noted that, from his perspective, the H-1B and L-1 visa programs should be considered matters of trade policy rather than immigration, stating: “Our data shows that [H-1B visa holders] stay in the U.S. less than two years.” He further commented:

Other countries, including the U.K., France, Germany, Japan, and India provide work permits to bring in foreign workers temporarily. It's not about immigration, it's about trade.

Napolitano Tells Senate Judiciary Committee that Securing Jobs for U.S. Workers is Key Priority

Department of Homeland Security Secretary Janet Napolitano, speaking at a Senate Judiciary Committee hearing, stated that ensuring jobs for U.S. workers is one of her "top obligations," and that the DHS is increasing its enforcement of the H-1B visa program. As reported by Computerworld, Napolitano cited new fraud prevention tactics—including visits to work sites—implemented over the past month as an example of measures being taken to prevent abuses of the H-1B program. A 2008 study (PDF) by the U.S. Citizenship and Immigration Service, found that as many as one in five H-1B applications were affected by either fraud or "technical violations" of the program.

Napolitano’s comments were in response to a question from Sen. Richard Durbin (D.-Ill.) raising concerns about H-1B visa holders displacing American workers. Durbin is co-sponsor of the H-1B Visa Fraud and Abuse Protections Act (S. 887) (see our previous post), which includes several enforcement provisions such as audits of employers. Napolitano stated that "our top obligations are to American workers, making sure American workers have jobs."
 

Greenspan Comments on Unauthorized Workers' Contributions to the U.S. Economy

Former Federal Reserve Chairman Alan Greenspan, appearing before a Senate subcommittee, commented that illegal immigrants make a “significant” contribution to U.S. economic growth by increasing the flexibility of the workforce. As reported at Bloomberg.com, Greenspan also spoke in support of reforming the U.S. immigration laws, calling changes that would create legal avenues for workers to enter the country “badly needed.”

Greenspan was speaking before the Senate Judiciary Subcommittee on Immigration, Refugees and Border Security, which has commenced hearings on revisions to immigration policies. During his remarks, Greenspan also stated that, because U.S. schools do not produce enough skilled workers, the H-1B visa program should be expanded in order to fill the gap with immigrants who hold advanced degrees. 

USCIS Issues Updated Count of Fiscal Year 2010 H-1B Petitions

On April 27 the U.S. Citizenship and Immigration Services (USCIS) announced that it has received approximately 45,000 H-1B petitions counting toward the Congressionally-mandated cap of 65,000 for the fiscal year 2010 program. The agency continues to accept petitions subject to the general cap.

In addition, USCIS has received approximately 20,000 petitions for aliens with advanced degrees. Congress has mandated that the first 20,000 of these petitions are exempt from any fiscal year cap on available H-1B visas. Even though the numbers are close, USCIS will continue to accept advanced degree petitions, since experience has shown that not all petitions received are approvable.

Regular updates on the processing of FY2010 H-1B petitions are available at the USCIS website.
 

Bill Would Overhaul H-1B and L-1 Visa Programs

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.

 

H-1B Cap Still Not Reached

On April 20, 2009, U.S. Citizenship and Immigration Services (USCIS) provided its second update regarding the H-1B cap count. USCIS has received approximately 44,000 H-1B petitions subject to the regular cap of 65,000. This represents only 1,000 additional filings since April 13th and means that new H-1B petitions may still be filed.

In addition, USCIS has received approximately 20,000 H-1B petitions eligible for the U.S. advanced degree exemption. Although the exemption is limited to 20,000 H-1Bs, USCIS continues to accept petitions since prior experience has shown that a certain percentage of submissions will be denied. Therefore, to reach the 20,000 petitions actually approved, USCIS must accept additional petitions.

This entry was written by Aimee Clark Todd.

U.S. Rep. Flake Introduces Legislation to Exempt Foreigners Who Earn a Ph.D. in the U.S. from H-1B Visa Cap

On March 30, 2009, U.S. Representative Jeff Flake (R.-AZ) introduced legislation (H.R. 1791) that would amend the Immigration and Nationality Act to authorize “certain aliens who have earned a Ph.D. degree from a United States institution of higher education in a field of science, technology, engineering, or mathematics” to be exempted from the numerical caps on H-1B visas. The bill, titled “Stopping Trained in America Ph.D.s From Leaving the Economy Act of 2009” (the “STAPLE Act”), was referred to the House Judiciary Committee. In addition to the exemption from the H-1B numerical cap, the legislation also would exempt the specified foreigners from the numerical limitations on permanent residence.

U.S. Senators Durbin and Grassley Planning to Resume H-1B Debate

Senators Dick Durbin (D-Ill.) and Chuck Grassley (R-Iowa) plan to reintroduce legislation that would require employers to make a “good faith” effort to hire U.S. citizens over H-1B visa holders, Computerworld.com reports. The two senators introduced a similar bill in March 2007, but that bill died after being folded into a comprehensive immigration reform bill that never went up for a vote.

The bill that Grassley and Durbin proposed in 2007, which they called “The H-1B and L-1 Visa Fraud and Abuse Prevention Act,” will be reintroduced with some changes, but its general outline is expected to remain the same. The 2007 bill would have required employers to advertise job openings for 30 days before submitting H-1B applications for those positions. The bill also sought to prevent employers from hiring H-1B workers and then outsourcing them to other companies.

The widespread layoffs being caused by the economic downturn may increase the chances of success for a new bill. Earlier in 2009, Grassley and Sen. Bernie Sanders (I-Vt.) succeeded at getting H-1B hiring restrictions on financial services firms receiving federal bailout money into the economic stimulus package.
 

H-1B Numbers Still Available

Yesterday the immigration community was surprised to learn that while the 20,000 H-1B numbers set aside for the advanced U.S. degree cap were nearly all accounted for, only two-thirds of the 65,000 regular H-1B cap numbers were used up. This means that the U.S. Citizenship and Immigration Services (USCIS) continues to accept applications for initial H-1B status more than a week after the H-1B filing season opened up on April 1st. This is in stark contrast to the 133,000 H-1B petitions received within the first two days of filing last year.

This scenario is not surprising because of the available H-1B numbers. Indeed, the battered U.S. economy coupled with the recent legislative action against recipients of Troubled Assets Relief Program (TARP) funding foreshadowed less demand for H-1Bs this year.

The intriguing part is the inversion of the regular and advanced U.S. degree caps. From the time the 20,000 set aside came into existence for those holding advanced U.S. degrees, it has always taken longer to exhaust than the 65,000 regular H-1B numbers. This indicates that similar numbers of foreign students getting U.S. masters and doctorate degrees are being sponsored for H-1B status, while the demand for those holding bachelors degrees or foreign degrees has dropped significantly.

This does not mean that petitions should not be filed on behalf of individuals possessing advanced U.S. degrees. It simply means that their H-1Bs will now be drawn from the remaining regular cap numbers.

On the day USCIS determines that sufficient petitions have been received to meet the annual limit, a random selection lottery will be conducted for all cases received on that day. Cases not selected in the lottery will be rejected.

This entry was authored by Chad Graham.

USCIS to Accept H-1B Petitions for FY 2010 Beginning April 1, 2009

U.S. Citizenship and Immigration Services (USCIS) has announced that on April 1, 2009 it will begin accepting H-1B petitions for the fiscal year 2010. Petitions will be considered accepted on the date that USCIS takes possession of the petition, not the date that the petition is postmarked. H-1B petitions cannot be filed more than six months in advance of the requested start date.

The H-1B program allows businesses to employ foreign workers in specialty occupations that require theoretical or technical expertise in specialized fields, such as scientists, engineers, or computer programmers. The 2010 fiscal year numerical cap for H-1B petitions is 65,000, but the first 20,000 H-1B petitions filed on behalf of foreign citizens who have earned a U.S. masters’ degree or higher will be exempt from the cap. H-1B petitions for employment at institutions of higher education or related or affiliated nonprofit organizations, nonprofit research organizations, or governmental research organizations also will be exempt from the cap.

Detailed information, including a processing worksheet, to assist in the completion and submission of fiscal year 2010 H-1B petitions is available on the USCIS web site www.uscis.gov or by contacting the USCIS National Customer Service Center at (800) 375-5283.
 

USCIS Explains New Requirements for TARP Recipients Hiring H-1B Workers

On Friday, the United States Citizenship and Immigration Services (USCIS) announced that employers receiving funds through the Troubled Asset Relief Program (TARP) or under section 13 of the Federal Reserve Act (covered funds) must meet additional requirements before hiring foreign nationals to work in the H-1B specialty occupation category. Continue reading on Littler's Washington DC Employment Law Update blog. 

Demand for H-1B Visas Dropping Sharply

As reported at CNNMoney.com, immigration experts expect H-1B visa applications for 2009 to be at their lowest levels in years. Some even predict that after April 1, the first day on which applications may be filed, it could take a week or more to fill the quota of 85,000 visas (as compared to past years, when the quota has been met in as little as 48 hours). Several factors account for this year's reduced demand, including the economic downturn and new restrictions on H-1B hiring at some firms. One result of the lower demand is that smaller businesses have the best chance in years to succeed with their H-1B applications.

USCIS Expands Premium Processing Service for Certain Form I-140 Petitions

As of March 2, the U.S. Citizenship and Immigration Services (USCIS) has expanded Premium Processing Service for designated Forms I-140 (Immigrant Petition for Alien Worker) to include alien beneficiaries who have reached, or are reaching, their limitation of stay in H-1B nonimmigrant status.  Previously, only certain alien beneficiaries who were in H-1B nonimmigrant status at the time of filing were able to request premium processing for Form I-140. 

As a result of this action (further details are available in a fact sheet), USCIS will accept Form I-907 (Request for Premium Processing Service) for alien worker petitions filed on behalf of alien beneficiaries who, as of the date of filing the Form I-907:

    • are the beneficiary of a Form I-140 petition filed in a preference category that has been designated for premium processing service;
    • have reached the sixth-year statutory limitation of their H-1B stay, or will reach the end of their sixth year of H-1B stay within 60 days of filing;
    • are only eligible for a further H-1B extension under section 104(c) of the American Competitiveness in the Twenty-first Century Act of 2000 (AC21); and
    • are ineligible to extend their H-1B status under section 106(a) of AC21.

Economic Stimulus Package: H-1B Visa Program Affected, but E-Verify Amendment Eliminated

The American Recovery and Reinvestment Act of 2009, signed by President Obama on February 17, imposes limits on the availability of H-1B visas, but the E-Verify amendment proposed in an earlier version of the bill was eliminated from the final version. Continue reading Littler's ASAP, "Besides COBRA: What Does the Stimulus Package Have for Employers," by Ellen N. Sueda, GJ Stillson MacDonnell, Patricia A. Haim, and Chadwick M. Graham.

In Wake of Job Losses, H-1B Workers Scramble to Find New Employer Sponsors

H-1B employment visas, widely issued by high-tech companies, have been issued to hundreds of thousands of foreign professionals. As reported in The Seattle Times, the economic downturn is having a dramatic impact on H-1B visa holders, who are "out of status" as soon as losing a job, and must find another employer sponsor in order to regain status. And, with U.S. unemployment rates soaring, employers are under increased pressure to cut their foreign workforce first. This is happening even as employers prepare and submit applications to hire up to 85,000 new H-1B workers nationwide.

Stimulus Bill Amendment Restricts TARP Recipients From Hiring H-1B Visa Holders

The Senate has approved a modified amendment to the massive stimulus bill (H.R. 1) that substantially limits employers that receive Troubled Asset Relief Program (TARP) funds from hiring employees who hold H-1B work visas. This amendment was sponsored by Senators Bernard Sanders (I-VT) and Charles Grassley (R-Iowa). Continue reading on Littler's Washington DC Employment Law Update blog.

Commerce Secretary Nominee Gregg Supports H1-B Expansion

As reported at eWeek.com, Senator Judd Gregg (R-N.H.), President Obama’s nominee to run the Department of Commerce, strongly supports expanding the H1-B visa program.
A favorite of U.S. technology companies, the H-1B program allows U.S. companies and universities to employ foreign guest workers with training in job categories that qualify as a “specialty occupation.” Senator Gregg commented: “Helping the high tech industry tap into highly skilled talent from around the world and address well-documented labor shortages not only keeps our economy strong, but creates U.S. jobs and deters employers from sending work elsewhere.”
 

Workplace Immigration Programs Likely to be Extended

Given the current economic crisis and other pressing issues facing the new president, sweeping immigration legislation is unlikely. Immigration policy in general is a contentious topic, so expect more piecemeal legislation as opposed to radical, across-the-board reform, as even in this economy there are areas where the shortages are not meeting our demographic needs, such as healthcare recruitment. Continue reading entry on Littler's Washington DC Employment Law update blog.