Changes to Immigration Programs

Congress Proposes Changes, Renews, and Restricts Immigration Programs

H1b 2016

It has been touch and go with multiple short term renewals, but Congress has proposed an Omnibus Bill last night that has many important immigration provisions. They concern everything in the US immigration system, from increased fees for H-1B and L-1 petitions to not restricting refugee resettlement.

There have been four important immigration programs that have been extended multiple times this year that are included in the Omnibus Bill for another extension: J-1 Waiver CONRAD 30 program, EB-5 Regional Center program, E-Verify, and the EB-4 religious workers program

Of note in the Omnibus Bill is an additional financial burden on companies with more than 50 employees, of whom over 50% hold H or L status:

  • Supplemental L-1 fees for 50/50 companies increase from $2,250 to $4,500;
  • Supplemental H-1B fees for 50/50 companies increase from $2,000 to $4,000;
  • Fees must be paid on initial petitions and extension petitions;
  • Fees are authorized for ten years, running through September 30, 2025; and

The H-2B program has been scrutinized in the past year and some changes are proposed. The H-2B program allows US companies to hire seasonal guest workers for the “busy season,” such as summer on a beach resort.

The Visa Waiver Program, which allows for friendly and easy travel for citizens from 38 approved countries, will have categorical restrictions for nationals from certain countries and individuals who travel to those countries.

One H-1B Fee Eliminated

H1b 2016October 1 is a significant date in government because it is the beginning of the fiscal year. It is also the date that the majority of cap-subject H-1B individuals begin their positions with H-1B status. There are always developments in H-1B visas to keep abreast of, so that employers can remain compliant. The Public Access File is a major part of that. Knowing whether an employee should be subject to certain taxes, such as FICA, is another.

The recent news in the H-1B world is that the fee penalties of Public Law 111-230 have sunset. H-1B and L-1 petitions that are filed on or after October 1 are not subject to this fee anymore.

In 2010, President Obama signed Public Law 111-230 into effect. This law increased the fees that certain employers had to pay to file some H-1B and L-1 petitions. Employer petitioners who employed 50 or more employees in the United States with more than 50% of its US workforce in H-1B or L-1 nonimmigrant status had to pay $2,000 for the filing of each petition. This fee existed on top of the normal filing fee, Fraud Prevention and Detection Fee, and American Competitiveness and Workforce Improvement Act fees.

L-1B Visa News

L-1B Visa Denials

 

The National Foundation of American Policy reported last week that the denial rate for L-1B petitions has reached a historic high of 35% for Fiscal Year 2014. This is an increase from 30% in FY 2012 and 34% in Fiscal Year 2013. While those numbers seem consistent, 35% is a stark contrast from the 6% denial rate from FY 2006.

 

The L-1B visa is an opportunity for multinational companies to transfer high-skilled employees from their overseas locations to the United States. There are certain requirements that must be met. The employee (1) must have been employed for a qualifying organization abroad for one continuous year in the past three years and (2) be seeking to perform a specialized knowledge position with the qualifying organization in the United States. The employer (1) must have the requisite relationship with the foreign company and (2) be engaged in or it must engage in business as a US employer with another country through the qualifying organization. The visa is an important tool for companies that are seeking US locations and would like to fortify their US operations with institutional knowledge.

 

The report contains some shocking statistics. 56% of employees transferring from India were denied between 2012-2014, more than four times the denial rate of 13% for employees from other countries in that time period. Nationals from other countries were also above that 13% rate, but Canadians only had a 4% denial. The increase in denials is especially consternating because there has not been a change in the L-1B regulations.

 

The White House announced that a guidance memo on L-1B visas will be released this week. L-1B guidance has been mentioned for years and was part of the executive actions announced in November. The guidance memo was released on March 24, 2015.

 

The Law Offices of Andrew Wood is committed to facilitating job-creating companies and employers who are growing the US economy. L-1 visas are an important aspect of that. In a global economy, we recognize that companies need employment visas to compete globally. Employment-based green cards are notoriously difficult, making non-immigrant visas the practical option. Given that L-1 and H-1B non-immigrant visas are the two practical means that companies have for retaining international nonimmigrant employees, guidance will be timely.