Labor Immigration Law

Section 245(a) of the Immigration and Nationality Act (INA) allows for the adjustment of status (I-485) which so many of our clients and readers are well familiar.  Section 245(c) of the INA establishes eight (8) bars to adjustment of status.  However, adjustment of status based on employment-based immigrant visa are exempt from three of these bars, pursuant to Section 245(k).

In a July 14, 2008, Memorandum, Donald Neufeld seeks to explain the applicability of these exemptions and provide details and clarifications on the applicability of the exemptions and the adjudication procedures.

What is the Exemption.   The bars to admission which are inapplicable are as follows: for a period of 180 days since the petitioner’s last lawful admission in the U.S. your status, (1) failed to maintain your status, (2) engaged in unauthorized employment, and (3) otherwise violated the terms of his/her status or admission.

Who is Exempt.  The exemptions are applicable to employment-based adjustment of status applications in EB-1, EB-2, EB-3, or EB-4 categories.  The alien must be present in the U.S. pursuant to a lawful admission.  The exemptions are available to derivative petitioners as well.

Analysis.  Although this is not a new rule, the July 14, 2008, Neufield Memo seeks to provide clear guidance and explanation on the applicability of the 180-day exemptions.  It is important to understand that the three exemptions are only for employment-based adjustment of status petitions, and not for family-based.  Also, it is important to understand that the 180-day period is cumulative and includes all days, weekend and holidays.  Finally, the 180-day period counts the dates since the last lawful admission - leaving the U.S. and entering legally “clears” the count.

The August 2008 Visa Bulletin is about to be released and we have reliable (based on past experience) information that EB-2 India will move forward by more than two years - from April 2004 to June 2006.

This is excellent news for applicants in the EB-2 India category.  Stay tuned as we wil update this post with more information as the official State Department Visa Bulletin is distributed.

The USCIS announced yesterday that it is publishing a Notice of Proposed Rulemaking (NPRM) to increase the maximum amount of time a TN visa holder can remain in the U.S. before seeking readmission or extension of stay from one year to three years. The goal behind the proposed rule is to provide TN visa holders similar visa terms as other skilled worker visas, such as H-1B.

Under the current regulations, TN visa holders must seek extensions or readmission every year. While in many circumstances such extension or readmission is without issues, TN visa holders often complain of the cumbersome yearly readmission requirements to which H-1B or L-1 visa holders are not subject. The new rule seeks to address these concerns and provide more certainty and uniformity among skilled professional visa categories.

The NPRM, once implemented as a final rule, will provide a number of benefits to all stakeholders. TN visa holders will not have to travel outside of the U.S. or seek extension every year thus saving money and time. U.S. employers will have greater certainty that TN beneficiaries will be allowed longer terms. Finally, the USCIS will have a reduced work load due to the decreased number of TN visa extensions.

Update: an advance copy of the proposed rule can be found here.

About the TN Visa. Canadian and Mexican citizens seeking temporary entry to the United States as professionals may come into the country as TN nonimmigrants under the North American Free Trade Agreement (NAFTA). TN status is available to Canadian and Mexican citizens with a minimum of a bachelor’s degree, or appropriate professional credentials, who work in professions listed in Appendix 1603.D.1 to Annex 1603 of the NAFTA and under DHS regulations at 8 CFR 214.6(c). Eligible TN professions include, but are not limited to, accountants, engineers, attorneys, pharmacists, scientists, and teachers.

The U.S. Department of Justice announced May 1, 2008, that it has imposed a civil fine of $45,000 to iGate Mastech, Inc., a Pittsburgh computer consulting company in connection with the company’s alleged discrimination against United States citizens in its employment practices and advertisements.

The DOJ found that between May 9, 2006, and June 4, 2006, the company placed 30 job ads for computer programmers that expressly favored H-1B holders to the exclusion of U.S. citizens or green card holders.  Some of the ads contained text identical or similar to, “Only H-1s apply, and should be willing to transfer H-1B.”

Such discrimination is prohibited under the U.S. Immigration and Nationality Act.   “We are committed to protecting the right of all authorized workers in the United States against citizenship status discrimination,” said Grace Chung Becker, Acting Assistant Attorney General for Justice Department’s Civil Rights Division.

While we are uncertain of the motives of the company to place such ads, the civil fine settlement comes as a result of a complaint by the Programmers Guild (PG) in 2006.  According to PG, iGate Mastech is just one of at least several companies engaged in the practice of discriminating against U.S. workers “in favor of cheap H-1B workers.”  If these are the motives, DOJ’s actions should serve to the great benefit of the labor immigrants.  It has been one of the main arguments of the H-1B program critics that the program undercuts the salaries of U.S. professionals.  By eliminating companies who intentionally seek foreign talent at a cheap rate, DOJ helps to ensure that the H-1B program’s critics have less of an argument against it.

Here is DOJ’s press release.

The Washington Post published today an article about the H-1B visa program and how its benefits and problems affect immigrants, employers and American workers.  The article is fairly short but it compresses the feelings of the three major stakeholders in the H-1B visa program debate.

The U.S. Employers
The H-1B program was designed to help U.S. companies obtain temporary skilled foreign workers to assist in projects for which there is a shortage of U.S. workers.  During the dot-com boom, most of these H-1B visas were used by software companies attracting talented software engineers from India, China, or eastern Europe.  Today, many of these H-1B visas are used by a more diverse group of U.S. employers, but software engineers are still among the highest in demand.

Based on the number of applications for this year’s H-1B season, 163,000, compared to last year’s number of 140,000, the demand for skilled foreign labor is strong and getting stronger. According to the Post article, companies, “offer the same salaries and perks whether you’re from Baltimore or Bangladesh . . . but [they] simply cannot find enough qualified U.S.-born staff to fuel [their] growth.”

The Foreign Talent
Foreign skilled workers’ stake in the H-1B visa program is often distorted.  The Post article highlights how many of these skilled workers come to the U.S. on H-1B visa and use the H-1B visa’s “dual intent” status to start a procedure of obtaining a permanent residency.  This, after all, is how this great country was built, and such influx of talent should not only be temporary, for the duration of the H-1B visa of six years, but should be made permanent to that the U.S. economy, as a whole, benefits.

The Critics
There are critics of the H-1B program, of course, and the Post article outlines their position.  Some critics consider the H-1B program a “cheap labor” allowing U.S. businesses to hire and sometimes exploit foreign workers who come to the U.S. and often have little or no bargaining power.  While such comments are justified in certain occasions and based on past cases by some employers, such cases seem to be limited to few individual employers and the Department of Labor is tasked with ensuring that no wage discrimination and workplace abuse takes place.

Conclusion
The debate about the benefits and disadvantages of the H-1B program will continue for as long as the program exists.  In economic slowdown, it is easy to point the finger to foreign workers as taking away jobs from qualified American workers.  But we should not lose sight of the greater benefit to the economy caused by the constant influx of educated foreigners who allow U.S. companies to stay competitive in a global economy.

The Department of Labor (DOL) has released the PERM statistics for the first two quarters of its Fiscal Year (FY) 2008, covering the period between October 1, 2007, and March 31, 2008 (the “Period”).

During the Period, there were 44,090 PERM applications received, there were 12,600 cases certified and, as of March 23, 2008, there were 28,000 cases pending.

Among the highlights provided by DOL are that 66% of the certified PERM cases were H-1B workers.  The top five states of intended employment were California, New York, New Jersey, Texas, and Florida.  Among the countries, India was top, followed by China, South Korea, Philippines, Mexico, Canada, and the U.K.

As expected, USCIS announced earlier today that it has received enough H-1B petitions to meet the cap for fiscal year 2009.  The 20,000 H-1B cap for holders of advanced degrees has also been reached.

Before running the random selection process, USCIS will complete initial data entry for all filings received during the filing period ending on April 7, 2008.   Due to the high number of petitions, USCIS is not yet able to announce the precise day on which it will conduct the random selection process.

The agency will conduct the selection process for “advanced degree” exemption petitions first.    All “advanced degree” petitions not selected will be part of the random selection process for the 65,000 limit.

We wrote earlier about the F-1 Visa OPT extension proposal.  We are happy to report that the OMB review has been complete and that the rule is expected to be published in the Federal Register during the week of April 7, 2008, at which time of publication the rule becomes effective. The new OPT rule brings great relief to many students or OPT holders who are in a difficult position because of the timing of the H-1B filing season and the expiration of their OPT.

We have obtained an advance copy of the DHS rule and we are providing a PDF of the rule as well as detailed analysis below.

Summary and Analysis of the New OPT Rule

29 Month OPT for STEM Students.  The 12 month limit on F-1 OPT is extended by 17 months for a total of 29 months  for holders of degrees in certain Science, Technology, Engineering and Mathematics (STEM) areas.  Eligible degrees are:

• Actuarial Science. NCES CIP Code 52.1304
• Computer Science: NCES CIP Codes 1 1 .xxxx (except Data Entry/Microcomputer Applications, NCES CIP Codes 11.06xx)
• Engineering: NCES CIP Codes 14.xxxx
• Engineering Technologies: NCES CIP Codes 15.xxxx
• Biological and Biomedical Sciences: NCES CIP Codes 26.xxxx
• Mathematics and Statistics: NCES CIP Codes 2 7 . m
• Military Technologies: NCES CIP Codes 29.xxxx
• Physical Sciences: NCES CIP Codes 4 0 . m
• Science Technologies: NCES CIP Codes 41 .xxxx
• Medical Scientist (MS, PhD): NCES CIP Code 51.1401

Additional Requirements.

• Student must be currently participating in a 12-month OPT and must be working for a U.S. employer in a job directly related to the student’s major area of study (which, of course, must be one of the areas listed above)
• Student must have successfully completed a bachelor’s, masters, or doctoral degree from a SEVIS-certified educational institution.
• The student has not previously received a 17-month OPT extension.
• The Designated School Official (DSO) must recommend the 17-month OPT extension after verifying that the student otherwise qualifies for the extension.
• Employer must be E-Verify registered.
• Employer must agree to report the termination/departure of the student to the DSO.

Application.  Students who qualify and wish to extend their OPT by 17 months must file form I-765 and attach the applicable fee.  Students who timely file their OPT extension application will be allowed to continue employment until the final decision of the I-765 form or 180 days, whichever comes first.  Under the new rule, students can file his or her I-765 up to 90 days prior to his or her program end date, and up to 60 days after the program’s end date.

Non-STEM Students

There is substantial relief for non-STEM degree students whose OPT are set to expire.  Under the new rule, duration of status and work authorization will be extended for a student on OPT who is the beneficiary of a timely-filed H-1B petition requesting an employment with starting date of October 1.  This applies to all students, not just STEM students.  This renewal terminates automatically upon the rejection, denial, or revocation of the H-1B petition.

Update 2 (Apr 6; 11:30 am): the rule is expected to go into effect during the week of April 7, 2008. Here are the details of the rule.

On March 31, 2008, the U.S. Immigration and Customs Enforcement submitted to the Office of Management and Budget (OMB) for review an interim final rule entitled “Extending Period for Optional Practical Training for 17 Months for Qualified F-1 Students.”

Details on the proposed rule are scarce at this point and we will provide updates as we receive them, but the important point is that the government is listening to the concerns of U.S. businesses and foreign students who find themselves in a difficult position when they are unable to apply for H-1B visa post-graduation in May (because the H-1B visas are already used by May) and out of OPT status during the following year and before being able to transfer to H-1B visa.

As a matter of procedure, OMB has up to 90 days to review the proposed rule and either approve it for publication in the Federal Register, at which point it becomes active, or send the rule back for revision.

Please stay tuned on more details on this important rule.

Update 1 (Apr 3; 4:50 pm): Some readers have inquired about the conflicting reports of 29-month time period for OPT instead of 17. In our opinion, this is due to accumulating the possible time on OPT. Currently, OPT can be used once, for 12 months, after obtaining a Bachelor’s degree and subsequently one more time, for 12 months, after obtaining a Master’s degree. We think that the proposed rule will extend only one of these OPT windows to 17 months while the second OPT will be limited to 12. This rationale would explain the 29-month OPT reports. Note that this is not an official rule or interpretation of it, it is just a speculation at this point.

Update 2 (Apr 6; 11:30 am): the rule is expected to go into effect during the week of April 7, 2008. Here are the details of the rule.

On the eve of April 1st, the day when many H-1B visa-seeking employees and companies file their work visa petitions, the Wall Street Journal (paid subcription required) reports on the problems which many U.S. businesses face in hiring foreign skilled workers.

As many of our readers know, the H-1B visas enable U.S. companies to hire skilled foreign workers for jobs which are difficult to fill with domestic workers.  Last year, the U.S. Citizen and Immigration Services (USCIS) received  124,000 applications for H-1B visas, nearly double the yearly cap of 65,000 set by Congress.  Because the number of applications exceeded the available number of visas, the USCIS used a random lottery to determine which applications will be approved.

Because the filing window opens on April 1st, for a starting date as early as October 1st, the applicants have only one shot at applying for, and getting a visa.  If the visa petition is received by the government a week late, or if the paperwork is not properly prepared, the company and its potential employee are out of luck because they do not have a chance to amend and re-file.

Many companies and applicants who are participating in the H-1B application season are hoping that the slowdown in the economy will drive down the applicants’ numbers this April.  However, as the Wall Street Journal reports, many softening sectors in the economy’s foreign worker needs are offset by  very strong demand in other areas, such as technology.  Also, just because the filing window is so small, many employers will try to make their hiring decisions early, and apply for their foreign nationals’ work visas in April.

What this year’s H-1B filing season will bring remains a mystery, but anecdotal evidence from our colleagues at other law firms suggests that demand for the H-1B visa is still very strong  and almost certainly there will be a lottery to distribute the excess H-1B visa applications.