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.

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.

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.

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.

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.