A recent study released by the Partnership for a New American Economy found that the limitations placed on the number of new H-1b’s that are provided each fiscal year through the H-1b cap is harming the U.S. economy. After the H-1b quota was reached in the first week of April in 2013 and 2014, many companies announced that they are considering increasing their presence in other countries that have immigration systems that are friendlier to high-skilled workers. Specifically, Microsoft recently stated that it would increase its research and development sector in Canada, and plans to offer 400 new jobs in Vancouver by 2015. To contribute to the arguments that the current H-1b system is reducing the capacity of many employers to grow in the United States, a study by the Partnership for a New American Economy found that that cities where employers received a large number of rejected H-1b cap cases experienced less job creation and wage growth. It also discovered that the U.S. tech industry would have grown substantially faster in the period after the recession if such a high number of H-1b visas had not been rejected in the 2007 and 2008 lottery. Furthermore, the results of the 2007 and 2008 H-1b lottery caused the New York City / New Jersey area to lose the opportunity to create as many as 28,000 tech related jobs. Similar results were shown in the Washington, DC, Chicago, and Dallas Fort Worth areas. This study provides further support for the critical need for immigration reform.
The WSJ ran an interesting article explaining how the employment of H-1b workers actually serves to increase the wages of their US citizen colleagues. This study appears to be in direct contradiction to the propaganda spouted at the dog and pony show put on by Senator Sessions a few weeks ago.
The DHS issued a press release yesterday announcing a new proposed rule which would allow certain H-4 holders to obtain an EAD card. In essence, the proposed rule will allow H-4 spouses to be issued EAD cards when the principal H-1 holder has an I-140 approved or is 7th year extension eligible under AC21. The rule is not in effect now but, will go through the formal rule-making process which can often take many months. We will update you after the proposed rule is published.
And they say ignorance and poor advice doesn’t pay off ! In this case it sure did. A Federal Judge ruled in favor of an IT Staffing co. and stated that they did not willfully violate the DOL’s posting regulations when they failed to post at 3rd party sites where they placed H-1b workers because they had tried to post at those sites and personnel at the company thought that trying really hard was sufficient. The ruling does NOT stand for the proposition that postings are not required at the actual worksites as the Court acknowledged that is the law. I also think it would be a mistake to think that the ruling stands for the proposition that if you try really hard that you are compliant. Rather, I think this ruling should be viewed in the context of an over-reaching DOL trying to claim bad acts i.e. willful acts when the facts supported negligence or ignorance. As any prosecutor will tell you, don’t over charge or you risk ending up with a not guilty verdict. Did the company clearly violate the DOL regulations by not posting at 3rd party worksites where their H-1b workers were placed ? yes. But, did they deserve a fine of almost $200,000 ? The Court obviously thought no and found a way to serve justice. I also think the facts in this case cry out for a legislative fix. What is the proper course of action when a customer says that, “you can’t place that notice on our premises “? In this case, the company had documented emails and letters to their customers requesting them to post the required notices and yet they were met with refusal after refusal. Many of their customers added to their level of ignorance by telling them that they did not have to post at the work-site location. Surely, the brilliant legislators in Washington can come up with a solution to this problem. Anyone say national registry of postings ?
When a Department of State Consular office sends an H-1b case back to the USCIS recommending revocation, the USCIS re-affirms their prior decision in approximately 30% of cases. For many other employment based visa cases, the percentage of re-affirmations is significantly lower i.e. L-1A: 18.02%; L-1B: 13.04%; O-1: 19.23%; and, P’s: 25.93%. In our experience, an even higher percentage of cases would be re-affirmed if employers chose to respond to the Notice of Intent Revoke (NOIR) but, often it will be 6 months to a year before the NOIR is even issued and by that time, the need for the employee or the specifics of the project have changed making the case moot. For employment visa cases to be decided on the merits, the DOS and the USCIS need a speedier process.
Last week, the USCIS provided a report to Congress on the characteristics of H-1b workers. 61% of petitions approved were for IT occupations, over 50% of H-1b’s were approved for persons with education beyond a bachelor’s degree, and the number of petitions denied increased dramatically in FY 2012; were among the many interesting facts provided in this report.
The Senate Judiciary Committee spent several days last week discussing the almost 300 amendments proposed by committee members. Many of the more anti-business and anti-H-1b amendments proposed by Sens. Grassley and Durbin were defeated however, several measures did pass. TechServe Alliance has posted a brief summary. Advocacy, education, and lobbying continues to be needed to protect the utilization of H-1b visas by staffing and consulting firms.