H-1B Visas: An Update
(December 2000)

For techies and other skilled professionals from abroad, the H-1B visa is often viewed as the ticket to a job in the US. With the recent decision to increase the cap on H-1B visas from 115,000 to 195,000 per year, programmers, engineers and others from around the world may have an easier time finding jobs in the US.

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Coming to America
H-1B visas may be just the ticket for tech workers from abroad to come work in the US. But there are other burdens to bear once the plane lands.

Visa Law Update
Congress and the President have reached agreement on the Legal Immigration and Family Equity Act (LIFE), a major immigration legislative package. This is the Republican alternative to the Democrats' proposed Latino Immigration Fairness Act (LIFA). Among the changes approved are the following:

1. Section 245(i) of the Immigration and Nationality Act will be temporarily available to people who are physically present in the US when the law is signed by the President. The provision will allow someone who qualifies to immigrate in an immigration category but is ineligible to adjust status because of an immigration status violation to pay a $1,000 penalty to continue processing. 245i applications must be submitted by April 30, 2001.

2. A new temporary "V" visa will be available to the spouses and minor children of legal permanent residents waiting for green card priority dates to become current for more than three years. Recipients of this visa would receive employment cards and be protected from deportation.

3. A new temporary "K" status will be available to spouses of US citizens (and their children) living abroad. The current K visa is available to fiances of US citizens to come to the US. K visa spouses would get temporary work authorization.

4. Opportunity to apply for adjustment for certain late legalization class members (CSS v. Meese, LULAC v. Reno, and INS v. Zambrano) who meet the new measure's qualifications.

5. Protection from deportation and work authorization granted to the spouses and minor children of late legalization applicants.

Learn more at: visalaw.com

UPDATED 12/19/00
The H-1B visa allows skilled professionals to work in the US for as many as six years. (See "H-1B Visa Program" for additional details on H-1Bs.) Until several years ago, only 65,000 H-1B visas were allotted. When that number was reached four months before the end of the fiscal year in 1998, Congress nearly doubled the number of available H-1Bs to 115,000.

Since then, high tech firms have argued for another increase in H-1Bs to meet the need for programmers, network engineers and other technology professionals. These companies got their wish in October when President Clinton signed the American Competitiveness in the 21st Century Act.

The highlights of the law include:

  • The legislation increases the number of H-1Bs available to 195,000 for fiscal years 2000 through 2003.
  • The act increases the "portability" of H-1Bs. In effect, making it easier for individuals already in the US on an H-1B to move from one employer to another. Previously, an individual had to wait for the H-1B approval before switching employers. Now, an individual is able to start working for a new employer at the time an H-1B petition is submitted. (Employers submit H-1B applications, known as petitions, on behalf of prospective employees.)
  • Under the new H-1B legislation, the six-year limit for H-1B holders doesn't apply for those who have applied for permanent residency but whose applications have been delayed. H-1B visas may be extended in one-year increments until a decision is made on an application for permanent residency.

Those favoring the increase in the H-1B cap argued that it was needed because of a shortage of high tech workers in the US. A workforce study from Information Technology Association of America (ITAA) released earlier this year, found a 12-month demand for 1.6 million information technology workers in the US. According to the ITAA, "because many applicants lack the requisite skill sets, hiring managers polled in the survey estimate that approximately half of these jobs will go unfilled."

But others contended the shortage was more of a mirage. In the Washington Post, dueling editorials addressed the issue.

Thomas J. Engibous, CEO of Texas Instruments, and Edward B. Rust Jr., CEO of State Farm Insurance, argued for an increase in the number of H-1Bs, saying American companies want to recruit the best professionals they can find. "There is no reason," they wrote, "why we have to choose between hiring the most qualified employees now for our immediate needs and supporting long-term excellence in our schools and our workforce. We can do both."

In a subsequent op-ed piece, Norman Matloff, a professor of computer science at the University of California, Davis, contended that cheap labor was the real motivating factor for increasing the cap on H-1Bs. "Employers are importing H-1Bs at low salaries to do the programming, while shunting many Americans into lesser jobs such as customer support," he wrote.

Though President Clinton signed the legislation, he had reservations, too. In a statement issued on Oct. 17, President Clinton expressed concern with some aspects of the act. "One of the key requirements of the H-1B program is that the foreign worker is paid the same wage as US workers doing the same job," he said. "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."

President Clinton directed the INS to monitor those provisions and determine whether the next Congress should consider changes to the H-1B program. In other words, with the H-1B, nothing is ever settled.

Material from the immigration law firm of Siskind, Susser, Haas & Devine was used in this report. This information is provided as a public service and not intended as legal advice or the establishment of an attorney-client relationship.




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