Under these new STEM rules, STEM graduates must receive a wage similar to U.S. workers doing similar work, must be employed by a U.S. employer who participates in the USCIS E-Verify program, and must be employed under an employer designed training program for the benefit of the student.  The training program must have goals and objectives, a means to measure student progress, and a supervision structure to oversee student activities.  The employer must certify that the student is not replacing a part time or full time U.S. worker.

On the nonimmigrant visa side, S.744 both provides for additional nonimmigrant visa categories and additional H-1B visa numbers. It also includes additional restrictions on H-1B and L-1 visa classifications further burdening employers who need foreign talent with additional fees and additional requirements to thwart fraud. As of this writing, the Senate has had 3 days of mark up on S.744.

In this article, we shall examine a summary of the starting point of S. 744 affecting nonimmigrant visa classifications.

A. F-1 Students:

* Dual intent recognized for F-1 students in bachelor’s or graduate degree programs.

B. New E Specialty Workers:

* Permits citizens of countries with whom the U.S. has Bi-Lateral Investment Treaties or Friendship, Commerce and Navigation Treaties to enter the U.S. as specialty occupation workers to work for a U.S. employer offering specialty occupation employment.

* Requires the employer to file and obtain a certified a Labor Condition Application (“LCA”) from the U.S. Dept. of Labor.

* Also provides this benefit specifically to citizens of South Korea.

* Limit is 5,000 visas per year per country.

C. E-3 Visas for citizens of Ireland:

* Irish citizens who seek E-3 status to perform services as an employee must have at least a high school education or its equivalent, or has, within 5 years, at least 2 years of work experience in an occupation which requires at least 2 years of training or experience.

D. Nonimmigrant Visa Portability:

* Both H-1B status holders and now O-1 status holders can begin work with a new H-1B or O-1 employer upon the filing of a new, respective H-1B or O-1 petition provided the new petition is non-frivolous, the H-1B or O-1 status holder has not worked without authorization, and such person has been lawfully admitted.

E. Deference to Previously Approved H-1B and L-1 Petitions:

* If the prior petition does not have material error, a substantial change in circumstances, or adverse newly discovered information, USCIS to defer to the prior petition in exercising its discretion.

F. Nonimmigrant Visa Revalidation Within the U.S:

* Dept. of State to allow visa revalidation in the U.S. for A, E, G, H, I, L, N, O, P, R, or W for otherwise eligible and qualifying applicants.

G. Nonimmigrant Stay and Employment Authorization Extensions:

* Nonimmigrants in employment authorized A, E, G, H I, J, L, O P, Q, R and TN whose employers have filed a timely extension maintain status and employment authorization until the extension is adjudicated.

H. H-1B Specialty Occupation Workers:

* Range of H-1B visa numbers between 110,000 and 180,00 using a High Skilled Demand Index to vary the number. Cap limited to changes of 10,000 visas per year.

* The exemption for foreign nationals with U.S. earned Masters Degree or higher increases to 25,000 but it is limited to STEM occupations, including biological and biomedical sciences.

* Spouses of H-1B will have employment authorization eligibility.

* H-1Bs have a 60 days grace period after termination of employment to depart the U.S. During that period the H-1B considered in status for purposes of filing to extend, change, or adjust status.

* Change to the DOL wage determinations from 4 wage levels to 3. Level 1 = mean of the lowest 2/3 of all surveyed wages in an MSA. Level 2 = mean of all wages. Level 3 = mean of the highest 2/3 of all wages. Employer must pay 100% of prevailing wage.

* 4 level DOL wage determinations remain for nonprofit higher education institutions.

* Employers must recruit for H-Bs by posting notice on a to-be-created DOL H-1B web site for 30 days before filing an LCA. Employer must offer position to a U.S. worker equally or better qualified.

* H-1B employers must attest that they have not and will not displace a U.S. worker for 90 days after the date of filing an LCA. Exempts employers whose number of employees in the same job classification has not changed in the past year. For H-1B dependent employers, the non-displacement period forward and back is 180 days.

* H-1B employers who outsource, lease otherwise contract for placement of services must pay a $500.00 fee. Prohibition on outsourcing for H-1B dependent employers.

* New H-1B or L-1 Fee: In addition to existing H-1B fees, DHS is to collect a new fee from an employer using the H-1B or L-1 program. The fee is $1,250.00 per H-1B petition provided the employer has not more than 25 full time or full time equivalent employees. For employers with 26 or more employees, the fee is $2,500 for an H-1B or L-1 petition. Nonprofit research institutions and nonprofit educational institutions are exempt from these fees.

* Nonprofit institution of higher education, nonprofit research organization, and employers engaged in healthcare who file for a nurse, physician, physical therapist or similar position care not H-1B dependent notwithstanding the number of H-1B workers.

* New definition of “intending immigrant:” A foreign national who intends to live and work in the U.S. for whom a labor certification for 1 year or a filed employment based immigrant visa petition. An intending immigrant is not counted as an employee in H-1B or L status in calculations required under the bill.

* DOL to conduct annual compliance audits of employers who have more than 100 employees if more than 15% of such workforce is in H-1B status.

* H-1B employers to provide H-1B foreign nationals with a copy of the entire H-1B petition within 30 days of filing the LCA. Employer can redact proprietary or financial information.

* USCIS or DOL to provide H-1B or L-1 foreign national with information on employee rights, employer obligations, and government agency contact information.

* H-1B Dependent Employer Fees Increase:

1. In fiscal years 2014-2024, a $5,000 fee for an employer who employs 50 or more employees if more than 30 percent and less than 50 percent of the applicant’s employees are H–1B nonimmigrants or L nonimmigrants.

2. In fiscal years 2015-2017, a fee of $10,000 for an employer who employs 50 or more employees if more than 50 percent and less than 75 percent of the applicant’s employees are H–1B nonimmigrants or L nonimmigrants.

* Nonprofit institutions of higher education are exempt from these fees and intending immigrants do not count as H-1B or L-1 employees.

* Increases penalties for LCA violations to $2,000. Exposes employers to liability for any employee harmed by the violation as to lost wages and benefits.

* In determining prevailing wage level for an employee of an institution of higher education, or a related or affiliated nonprofit entity or a nonprofit research organization or a governmental research organization, the prevailing wage level only takes into account employees at such institutions and organizations in the area of employment.

* H-1B employers cannot

1. Advertise any as only available to F-1 OPTs or H-1B nonimigrants;
2. Advertise that F-1 OPT or H-1B will receive preference in the hiring process;
3. Solely recruit individuals who are or who will be F-1 OPT or H–1B

* Limitation on total H-1B and L-1 nonimmigrants for a specific employer: Employers with 50 or more employees must sum the number of H-1B and L-1 employees.

1. For FY 2015, that sum cannot exceed 75% of the total number of employees;
2. For FY 2016, that sum cannot exceed 65%;
3. After FY2016, that sum cannot exceed 50% of the total number of employees;

* DOL standard of review for LCA to include “completeness and evidence of fraud or misrepresentation.”

1. DOL has 14 days to certify LCA instead of 7;
2. Employer can file H-1B petition without LCA, but USCIS cannot approve petition until DOL certifies LCA;
3. DOL can investigate if DOL finds evidence of fraud or misrepresentation.

* H-1B or L visa or status holder to receive a brochure of employer’s obligations and employee’s rights, and federal agency contact information which can provide additional information. If visa issued abroad, DOS to provide; if change done in the U.S. by USCIS, USCIS to provide.

I. L-1 Intra-company Transferees

* Employer cannot place, outsource, lease or otherwise contract an L-1′s services unless L-1 would not be supervised by outplaced entity, the placement is not essential labor for hire, and other employer attests that it has not displaced and will not displace a United States worker during the period beginning 90 days prior to and 90 days after the date the employer files L petition.

* New Office L-1s: Petition can be approved for up to 12 months if:

1. Nonimmigrant has not been the beneficiary of 2 or more petitions during the immediately preceding 2 years;
2. The employer operating the new office has an adequate business plan, sufficient physical premises to carry out the proposed business activities; and
3. The financial ability to start doing business immediately upon the approval of the petition.

* Extension approval requires:

1. A statement summarizing the original petition; evidence that the employer has complied with the business plan;
2. Evidence of the truthfulness of statements in the original new office petition;
3. Evidence that the employer has been doing business at the new office through regular, systematic, and continuous provision of goods and services;
4. Statement of the duties the nonimmigrant has performed at the new office during the new office approval period;
5. Duties the nonimmigrant will perform at the new office during the extension period;
6. Statement describing the staffing at the new office, including the number of employees and the types of positions held by such employees;
7. Evidence of wages paid to employees;
8. Evidence of the financial status of the new office;

* Limitation on total H-1B and L-1 nonimmigrants for a specific employer: Employers with 50 or more employees must sum the number of H-1B and L-1 employees.

1. For FY 2015, that sum cannot exceed 75% of the total number of employees;
2. For FY 2016, that sum cannot exceed 65%;
3. After FY2016, that sum cannot exceed 50% of the total number of employees;

* In FY 2014, employers with 50 or more U.S. based employees must pay an L-1 filing fee of $5,000 if more than 30% and less than 50% of the employer’s employees are in H–1B or L-1 status.

* For each FY 2014-2017, employers with 50 or more U.S. employees must pay an L-1 filing fee of $10,000 if more than 50% and less than 75% the employer’s employees are in H–1B or L-1 status.

* DHS can investigate L-1 employers for violations of L-1 requirements based on specific, credible information. DHS can withhold identity of complaining witness. 24 month window. Employer may request a hearing if DHS finds a reasonable basis for employer’s failure to comply and DHS must make a finding within 120 days after hearing.

1. No federal court review of finding permitted.

* DHS may conduct voluntary surveys regarding employer compliance.

* DHS to conduct annual compliance audits of employers with more than 100 U.S. employees if more than 15% such employees are in L-1 status.

* DHS penalties up to $2,000 fine, debarment of 1 year for misrepresentation or failure to comply; up to $10,000 and 2 year debarment for willful failure.

* Employer can be liable to employees for lost wages and benefits harmed by each violation.

Rabinowitz & Rabinowitz, PC. is a business immigration firm representing businesses and foreign nationals in employment-based visa cases. To learn more or to contact a Dallas immigration attorney, visit http://www.rabinowitzrabinowitz.com.

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