H1-B Visa News
H1-B Description |
H1-B Application Checklist
President Signs H-1B Bills Into Law
October 17, 2000
President Clinton late yesterday signed S. 2045, the H-1B bill,
and H.R .5362, the fee increase bill, with the official date of
enactment thereby being October 17, 2000. Since most of S. 2045's
provisions do not have separate enacting clauses, those provisions
become effective as of yesterday. The only exceptions are Section
105, Portability of H-1B Status, which in subsection (b) states
that the section will apply to "petitions filed before, on
or after" October 17, 2000, and the H-1B Cap increase provisions
of Section 102, which are effective as if enacted with ACWIA in
1998. The education and training fee, currently $500, will increase
to $1000 two months after October 17, 2000, or by December 17, 2000.
However, the new exceptions from the fee for elementary and secondary
schools and nonprofits engaging in established curriculum-related
clinical training of students at higher educational institutions
are effective immediately.
In his statement, the President also reaffirmed his commitment
to the passage this year of the Latino and Immigrant Fairness Act
measures (restoration of Section 245(i), NACARA Parity, and updating
the registry date).
The following is the President's signing statement:
THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
October 17, 2000
STATEMENT BY THE PRESIDENT
I am pleased today to sign into law S. 2045, the "American
Competitiveness in the Twenty-First Century Act," and H.R.
5362, an Act to increase the fees charged to employers who petition
to employ H-1B non-immigrant workers. Together, these laws increase
the number of H-1B visas available to bring in highly skilled foreign
temporary workers and double the fee charged to employers using
the program to provide critical funding for training U.S. workers
and students. The Acts recognize the importance of allowing additional
skilled workers into the United States to work in the short-run,
while supporting longer-term efforts to prepare American workers
for the jobs of the new economy. At the core of my economic strategy
has been the belief that fiscal discipline and freeing up capital
for private sector investment must be accompanied by a commitment
to invest in human capital. The growing demand for workers with
high-tech skills is a dramatic illustration of the need to "put
people first" and increase our investments in education and
training. Today, many companies are reporting that their number
one constraint on growth is the inability to hire workers with the
necessary skills. In today's knowledge-based economy, what you earn
depends on what you learn. Jobs in the information technology sector,
for example, pay 85 percent more than the private sector average.
My Administration has made clear that any increase in H-1B visas
should be temporary and limited in number, that the fee charged
to employers using the program should be increased significantly,
and that the majority of the funds generated by the fee must go
to the Department of Labor to fund training for U.S. workers seeking
the necessary skills for these jobs. This legislation does those
things. But the need to educate and train workers for these high-skilled
jobs goes beyond what has been addressed here. I want to challenge
the high-tech companies to redouble their efforts to find long-term
solutions to the rapidly growing demand for workers with technical
skills. This will require doing more to improve K-12 science and
math education, upgrading the skills of our existing workforce,
and recruiting from under-represented groups such as older workers,
minorities, women, persons with disabilities, and residents of rural
areas. Many companies have important initiatives in these areas,
but we clearly need to be doing more.
This legislation contains a number of provisions that merit concern.
For example, one provision allows an H-1B visa holder to work for
an employer who has not yet been approved for participation in the
H-1B program. In addition, there are provisions that could have
the unintended consequence of allowing an H-1B visa holder who is
applying for a permanent visa to remain in H-1B status well beyond
the current 6-year limit. I am concerned that these provisions could
weaken existing protections that ensure that the H1-B program does
not undercut the wages and working conditions of U.S. workers, and
could also increase the vulnerability of H--1B workers to any unscrupulous
employers using the program. For example, one of the key requirements
of the H-1B program is that the foreign worker is paid the same
wage as U.S. workers doing the same job. This legislation, however,
by allowing H-1B workers to change employers before a new employer's
application has been approved, could result in an employer -- knowingly
or unknowingly -- not paying the prevailing wage.
For these reasons, I am directing the Immigration and Naturalization
Service, in consultation with the Department of State and the Department
of Labor, to closely monitor the impact of these provisions to determine
whether the next congress should revisit these changes made to the
H-1B program. I had hoped that the Congress would take this opportunity
to address important issues of fairness affecting many immigrants
already in this country. We need to meet the needs of the high-tech
industry by raising the number of visas for temporary high-tech
workers. But we also must ensure fairness for immigrants who have
been in this country for years, working hard and paying taxes.
The Latino and Immigrant Fairness Act (LIFA) will allow people
who have lived here for 15 years or more -- and who have established
families and strong ties to their communities -- to become permanent
residents. It will also amend the Nicaraguan Adjustment and Central
American Relief Act (NACARA) to extend the same protections currently
offered to people from Cuba and Nicaragua to immigrants from Honduras,
Guatemala, El Salvador, Haiti, and Liberia who fled to this country
to escape serious hardship. Finally, it will allow families to stay
together while their applications for permanent resident status
are being processed. These fundamental fairness provisions have
been embraced by humanitarian groups, business groups, and Members
of the Congress from both sides of the aisle. I will continue to
insist strongly on passage of the Latino and Immigrant Fairness
Act this year, before the Congress adjourns.
WILLIAM J. CLINTON THE WHITE HOUSE,
October 17, 2000.
H-1B Legislation - Raise in Fee/Effective Date
October 12, 2000
The following is text of the most recent legislation passed by
Congress regarding the increased H-1B employer's fee:
H.R.5362
One Hundred Sixth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-fourth
day of January, two thousand
An Act
To increase the amount of fees charged to employers who are petitioners
for the employment of H-1B non-immigrant workers, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. AUTHORITIES RELATING TO THE IMPOSITION OF FEES.
Section 214(c)(9) of the Immigration and Nationality Act (8 U.S.C.
1184(c)(9)) is amended--
(1) in subparagraph (A), by striking `(excluding' and all that
follows through `2001)' and inserting `(excluding any employer that
is a primary or secondary education institution, an institution
of higher education, as defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a), a nonprofit entity related
to or affiliated with any such institution, a nonprofit entity which
engages in established curriculum-related clinical training of students
registered at any such institution, a nonprofit research organization,
or a governmental research organization) filing before October 1,
2003'; and
(2) in subparagraph (B), by striking `$500' and inserting `$1,000'.
SECTION 2. EFFECTIVE DATE.
The amendment made by section 1(2) shall apply only to petitions
that are filed on or after the date that is 2 months after the date
of the enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END
***NOTE THE EFFECTIVE DATE: TWO MONTHS AFTER THE BILL IS SIGNED***
[Courtesy of American Immigration Lawyers Association]
AILA Press Release - H-1B Legislation
October 4, 2000
FOR IMMEDIATE RELEASE
Wednesday, October 4, 2000
IMMIGRATION LAWYERS APPLAUD HOUSE VOTE ON H-1B;
CONGRESS NEEDS TO PASS OTHER IMMIGRATION MEASURES
WASHINGTON, D.C. - The American Immigration Lawyers Association
(AILA) hailed House approval on a voice vote of a measure allowing
employers to retain temporary foreign professionals. But AILA also
called upon Congress to approve other vitally needed immigration
bills.
We are extraordinarily pleased that both Republicans and
Democrats together stood in support of a measure that will help
sustain our economic growth, and will help American workers prepare
for well-paying, high-tech jobs by funding training programs for
current employees and education programs for American students,
said Margaret A. Catillaz, AILAs President. We thank
Speaker Dennis Hastert (R-IL) and Minority Leader Richard Gephardt
(D-MO) for quickly taking up and passing S. 2045. We call on President
Clinton to just as quickly sign the bill into law.
Congress cannot lose sight of the fact that, before adjournment,
it must address four other important immigration matters: due process
reforms of the overly harsh 1996 laws, the restoration of Section
245(i), NACARA parity and updating the registry date. These measures
do not merely make technical changes in a complicated law. The inequities
of our nations immigration system are hurting people trying
to reunite with their families and fleeing civil strife, Catillaz
said.
Passage of these measures also are central to continuing
our current economic expansion, because they will help alleviate
the dire and long-term worker shortages that are affecting businesses
in all economic sectors shortages that Federal Reserve Chairman
Alan Greenspan has said are the greatest threat to our economic
growth.
We urge Congress to restore American values of law, justice
and fairness to our nations immigration system by passing
much-needed reforms. By restoring American values, we also will
be helping to ensure that the longest economic expansion in U.S.
history continues unabated.
AILA Issue Paper - H-1Bs At A Glance
June 26, 2000
What are H-1Bs?
Temporary: H-1Bs are temporary foreign professionals hired by
a U.S. employer.
Highly skilled: H-1Bs can be hired only for "specialty occupations,"
those jobs requiring the equivalent of at least a bachelor's degree
in the field.
Professionals: H-1Bs must be professionals such as doctors, engineers,
professors, accountants, lawyers, physical therapists, and computer
professionals.
How Many Enter and Where Do They Come From?
Under current law, no more than 115,000 H-1B visas can be issued
in the next two years, with the cap dropping to 107,500 in 2001.
After 2001, the cap drops to 65,000 per year. Even with these numbers,
H-1B temporary professionals comprise less than .1% of the U.S.
workforce of more than 127 million people. The top 5 source countries
for H-1B's currently are India, China, Canada the United Kingdom,
and Philippines.
Why Do Employers Hire H-1Bs?
Needed skills and Temporary Shortages: Employers hire H-1B professionals
to obtain essential technical skills or knowledge that is relatively
unique and not readily found in the U.S. or to fulfill temporary
shortages of needed skills.
Global market expertise: Employers often need H-1B professionals
to bring special expertise in overseas needs, markets or trends
that enables U.S. businesses to compete globally.
What Must Employers Do?
Protect wages: Employers must pay a wage to every H-1B worker that
is at least as much as what is typically paid in the region for
that type of work (prevailing wage), or what the employer
pays existing employees with similar experience and duties.
Protect working conditions: Employers cannot use H-1B professional
to break a strike, and must notify their U.S. workforce when they
hire an H-1B professional. Employers cannot make the H-1B nonimmigrants
work under conditions different from their U.S. counterparts, including
hours, shifts and benefits.
Recruit in the U.S. and Not Displace U.S. workers: Employers who
use a lot of H-1Bs must first try to find U.S. workers before they
can hire an H-1B. They also must attest that they are not hiring
the H-1B if they have laid off or displaced a similarly situated
U.S. worker. Employers must attest to the above protections by affirmatively
filing with the Department of Labor (DOL) and by maintaining a file
open to the public.
Be subject to penalties: Failure to comply with DOL regulations
can result in an audit, civil and administrative penalties, payment
of back wages, and even debarment from participating in key immigration
programs.
H-1B Update
December 15, 1999
INS Commences H-1B Adjudications
Earlier this month, Immigration and Naturalization Service (INS)
announced that they would be halting the adjudication of H-1B visas
filed after October 25, 1999 in order allow the four Service Centers
to get closer together in processing times, as well as to "get
a handle on" the H-1B count for the current fiscal year, FY00.
The INS has now announced that the halt on adjudications is over,
and the processing of H-1B cases will continue effective today,
December 15, 1999.
The announcement by the INS that a count was going to be conducted
caused much concern and speculation that perhaps the 115,000 cap
on H-1B visas for the current fiscal year was soon to be reached.
However, no information has been reported by the INS regarding the
current count. The latest INS announcement included an assurance
that the count was not close to being reached. The INS has now indicated
that the reason for the halt was simply to give Service Centers
who were behind in adjudications time to catch up. While the INS
has commenced processing of H-1B visas, it has indicated that similar
pauses in processing will be likely in the future (even as soon
as after the Christmas holiday).
H-1B Update
October 28, 1999
There has been a proposal pending before Congress to raise the
number of H1-B visas permitted during any given year. However, it
has been stalled at least until next year.
In testimony before Congress, a CEO of a Fairfax, Va. based news
and career information service detailed the problems regarding the
information technology labor crunch. She testified that her company
spent months trying to fill a system administrator position and
finally found a qualified candidate from Mexico. It took an additional
4 months to get the H1-B approval for the woman to begin working.
She further testified that these types of delays are particularly
difficult for a new company to deal with. This problem is compounded
by the fact that the current cap of 115,000 could be reached by
March or April 2000 or possibly earlier if the INS issued too many
H1-B visas last year and applies the overage to next year's cap.
The internal INS audit of the number of visas issued last year is
still underway.
Congress Offers No Worker Relief. No Action Expected on H-1B,
Tax Credits Until Next Year
October 25, 1999
Congress Offers No Worker Relief No action expected on H-1B, tax
credits until next year Patrick Thibodeau Computerworld, October
25, 1999
Congress won't be offering help, at least in the short term, to
companies in need of high-tech workers or tax credits for training
people in high-tech jobs. Legislators aren't expected to take any
action on proposals to raise the H-1B visa cap until sometime next
year and may not act before this fiscal year's cap is reached.
Moreover, a coalition of trade associations seeking congressional
support for job training credits was told last week by a White House
official that the tax credit plan had problems and wouldn't be considered
until next year.
At a Senate hearing last week on the H-1B visa issue, Susan Williams
DeFife, CEO of WomenConnect.com Corp., a Fairfax, Va.-based news
and career information service, testified about the information
technology labor crunch. She said for an emerging company, "one
unfilled tech position can severely impact our ability to grow."
DeFife said she spent months trying to fill one system administrator
opening until she found a young woman from Mexico who was completing
course work in the U.S.
Hiring her meant going through the H-1B visa process, and the company
had to wait another four months before such visas were available.
The current 115,000 cap on H-1B visas could be reached early next
year -- and perhaps sooner if the Immigration and Naturalization
Service (INS) issued too many visas in the fiscal year ended Oct.
1. The INS is now auditing its work.
High-tech industry trade groups have been pushing for an increase
in the H-1B cap and for job training tax credits.
Rep. Jim Moran (D-Va.) and Sen. Kent Conrad (D-N.D.) earlier this
year introduced bills that would provide tax credits of up to $6,000
per year for job training.
Moran, speaking at a forum on the tax credit last week, said incentives
are needed because while it's in the country's interest to provide
training, it's not necessarily in a company's interest to pay for
it. A company can invest in training an employee only to lose that
person "to another company that isn't willing to make that
investment," he said.
But Tom Kalil, a senior director at the president's National Economic
Council, said the chances of quick approval of the tax credits are
slim. He said administration officials are concerned that the credit
rewards companies for training they are already doing.
The "best opportunity" to move forward on this legislation
will be for the industry to make "a stronger case" to
have it included in next year's budget, Kalil said.
First H-1B Cap Update For FY2000
October 6, 1999
The American Immigration Lawyers Association has provided the first
H-1B visa cap update for Fiscal Year 2000.
The California Service Center has reported that they have about
5,937 applications with an October 1, 1998 start-date left to process.
However, the Vermont, Nebraska, and Texas Service Centers have not
supplied any numbers.
It is currently estimated that about 25,000 cases total have been
adjudicated and that there are about 14,000 remaining.
H-1B Update
October 4, 1999
It was recently announced that the 106th Congress of the United
States will not take up legislation to increase the H-1B cap during
its first legislative session. Senate Majority Leader Trent Lott,
a Republican from Mississippi, hinted that the Senate may take up
the bills in its second session. The American Immigration Lawyers
Association (AILA) urges affected corporate representatives interested
in increasing the annual H-1B cap to contact their Senators and
Representatives.
H-1B Legislation Introduced In The Senate
September 15, 1999
Three prominent Republican Senators are cosponsoring legislation
that would increase the number of H-1B visas available annually.
The New Workers for Economic Growth Act, introduced by Phil Gramm
of Texas, Trent Lott of Mississippi and Mitch McConnell of Kentucky,
would raise the annual limit on H-1B visas to 200,000 for fiscal
years 2000, 2001 and 2002.
H-1B visas have been the subject of debate for a few years now.
In 1998, after months of anticipation and pressure from high tech
firms, Congress finally passed the American Competitiveness and
Workforce Improvement Act. This created a temporary increase the
available H-1B visas, 115,000 for 1999 and 2000, 107,500 for 2001,
after which the annual limit would revert to 65,000.
Like the 1998 law, this new bill would only temporarily raise the
cap, but under the new proposal, two significant groups of workers
would not be subject to the limit. First, those who have attained
a masters degree or higher in an area related to the intended
employment and receive wages or similar compensation of at least
$60,000 annually would be admissible without regard to the numerical
limit. The second group that would be admissible without numerical
limit would be those with a bachelors degree or higher who
will be employed at an institution of higher learning.
Seasoned congressional watchers feel it is unlikely that Congress
will pass any new H-1B legislation this year. However, next years
presidential election campaign may create the necessary pressure
to push a bill through Congress, as immigration will doubtless be
an issue during the campaign. Silicon Valley companies have poured
money into the campaigns of many of the presidential candidates,
and the H-1B issue is foremost on the legislative agenda of many
of these firms.
Bill to Increase H-1B Quota
September 8, 1999
All Service Centers Have Begun FY2000 H-1B Adjudications
All four of the Immigration and Naturalization Service (INS) regional
Service Centers (Vermont/Eastern, Nebraska/Northern, Texas/Southern,
California/Western) have now begun to adjudicate H-1B petitions
that count toward the FY2000 Fiscal Year.
The Texas and Nebraska Service Centers have reported that they
will most likely complete the adjudications of all cases received
up to one month before the beginning of the 2000 fiscal year (i.e.
filed before September 1, 1999) by October 1, 1999. The Texas Service
Center reportedly has fewer than 10,000 cases pending at this time.
As of August 16, 1999, the Texas Service Center reported that they
were working on petitions with a receipt notice date of May 24,
1999 or before.
The Vermont and California Service Centers reportedly have many
more cases pending and much larger backlogs. While they have also
begun adjudications of H-1B petitions toward the 2000 Fiscal Year,
they will take longer to adjudicate the petitions based upon their
tremendous case load.
Bill to Increase H-1B Quota
September 7, 1999
Senator Gramm and Senators Lott and McConnell, have introduced a
bill (S. 1440) proposing an increase in the H-1B quota to 200,000
for Fiscal Years 2000, 2001, and 2003. The Bill would exempt from
the any H-1B professionals who possess a master's degree (or its
equivalent) and receive compensation of $60,000 and any H-1Bs hired
by an institution of higher education. Please note, this is
just a bill so far - not the law.
Service Centers Beginning to Process FY2000 H-1B Petitions
August 30, 1999
A memorandum from the American Immigration Lawyers Association
(AILA)
issued on August 30, 1999 states that the INS Service Centers have
begun processing H-1B cases subject to the Fiscal Year 2000 cap.
More information will be provided as it becomes available.
INS Memo further clarifies new rules on Advance Parole applications
for H-1B and L-1 visa holders
July 1999
In June, the INS issued a regulation abandoning the longstanding
policy that H-1B and L-1 nonimmigrant visa holders applying to adjust
to permanent residency in the US must reenter the US with an advance
parole document or risk being deemed to have abandoned their green
card applications. The agency has now issued an internal memorandum
clarifying various aspects of the regulation.
The memo first notes that immigration officers are not to deny
an application for an extension or change of H-1 or L-1 status merely
because an adjustment of status application is pending.
The memo also makes clear that H-1 and L-1 applicants need not
seek advance parole to travel abroad. The H-1 or L-1 visa holder
may seek to be readmitted to the US in the same status provided
that he or she has a valid H-1 or L-1 visa (for those not visa exempt),
has the original I-797 receipt notice for the I-485 and remains
eligible for H-1 or L-1 classification.
The INS emphasizes that H-1 and L-1 nonimmigrants must still follow
all of the regulations in order to maintain their visa status. So,
for example, changing jobs without properly applying for a change
of status would cause the loss of the H-1B visa status even though
the individual may remain working legally under an employment authorization
document tied to the adjustment application. This can be a problem
if the adjustment application is denied later on since the applicant
would no longer be in legal status.
The INS also addresses the issue of what to do when an adjustment
of status application is approved while the H-1 or L-1 visa holder
is outside the US. According to the INS, a Form I-797 approval notice
for an adjustment of status application is insufficient to establish
an arriving aliens entitlement to lawful permanent residence.
An H-1 or L-1 nonimmigrant or family member will be granted deferred
inspection upon showing the I-797 approval notice. The applicant
would then complete processing at a local INS office.
The INS is issuing this policy because H-1 and L-1 visas are "dual
intent" categories under the Immigration and Nationality Act.
Normally, nonimmigrant visa holders who apply for adjustment of
status applications are presumed to be intending immigrants and
are no longer eligible to maintain nonimmigrant status. However,
H-1 and L-1 are not subject to this presumption under the law.