GOVERNMENT SHUTDOWN ENDS; SERVICES SLOWLY COMING ON-LINE

Late yesterday the Senate and House each passed a budget bill, which was signed by President Obama.  The bill’s signing ends the two week federal government shutdown.  The shutdown obstructed many immigration services, notably the Department of Labor’s iCert system, which was shuttered.  Through the iCert system employers and their lawyers apply for Labor Condition Applications (LCAs), Prevailing Wage Determination (PWDs) and Permanent Employment Labor certification (PERM).  The discontinuation of these programs meant that H-1Bs and PERM-based green card applications effectively stopped.    

As of this writing, the iCert system remains inoperable.  It is expected that the iCert system will commence operating within 24 hours.  At that time MU Law immediately will begin filing LCAs, PWDs, and PERM applications.  We are prioritizing those matters with a legal deadline or business necessity. 

Other immigration services were slowed by the shutdown.  It is expected that those services should return to normal processing times in the near future. 

MANAGING LCA ISSUES DURING THE GOVERNMENT SHUTDOWN

The issues described in this MU Visa Advisor are complex and very much driven by the facts of your case.  Please do not hesitate to contact MU Law if you have any questions about these issues.

The Federal Government Shutdown has caused the Department of Labor to furlough about 80% of its workforce.  As a result the DOL’s iCert System, which is the manner through which LCAs are filed, has been turned off.  It is impossible to file LCAs, leading to many questions from H-1B employers. 

Background: The LCA System

The Labor Condition Application (LCA) is the centerpiece of the H-1B program.  It serves two primary functions.  First, it forces the H-1B employer to certify that the wage that it is offering to pay the H-1B worker is not lower than similar US workers.  Second, the LCA includes a mandatory mechanism whereby H-1B employers must notify potential US workers of their right to contact the Department of Labor (DOL) if they believe that the H-1B employer is engaging in prohibited behavior.

There are two ways that the LCA is utilized in the H-1B process.  First, new H-1B petitions must be submitted with an LCA that has been certified by the DOL.  Second, if an employee is going to change worksites, the employer must provide new Notice to the workers at this new worksite.  In some instance, the H-1B employer must file a new LCA with the DOL and wait the seven days for the DOL to certify the new LCA.  In other instances, the H-1B employer must not only obtain a new certified LCA but must also file a new H-1B.

The Government Shutdown

Unfortunately with the government shutdown the DOL has shuttered the LCA system.  It is impossible to file LCAs.  The DOL has not given the public any guidance on how to handle new H-1B petitions nor how to handle new situations where a new LCA is required.

On account of the fact that LCAs cannot be filed, H-1B employees should not change worksites in instances where a new LCA would normally be required.  This is the safest approach.  Once the government shutdown ends, H-1B employers can file an LCA and the employee can move once the new LCA is certified and in place.

On the bright side there are some instances when a new LCA is not required. 

• 1.       When H-1B workers change worksites, but the new worksite is still within the prior LCA metropolitan area, a new LCA is not required.  An H-1B employer must still post notice at the new worksite. 
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• 2.      The LCA rules allow H-1B employees to work at new worksites when the new worksite is peripatetic or very short-term.  For example a new certified LCA is not required if an H-1B employee is attending meetings for a few days in a new location.

If business needs demand that an H-1B must change worksites, then the H-1B employer must be aware that it may be technically violating law, although a legal argument could be made that compliance with the law was impossible on account of the shutdown.  Penalties can range from $1,000 - $35,000 per violation.  Debarment from the H-1B program could also occur.  After considering these potential penalties, an H-1B employer still feels compelled to move the H-1B worker, we urge that H-1B employers take all three of these additional measures to mitigate risk:

·         Make sure to post LCA posting.  Even though we would not be able to file an LCA, we would still be able to post Notice at the destination worksite.  We can prepare the Notice Posting for you.

·         File an LCA at the conclusion of the shutdown.

·         File an amended H-1B at the conclusion of the shutdown and the certification of the new LCA.

US GOVERNMENT SHUTDOWN IMPACTS SOME IMMIGRATION SERVICES

Congress’ failure to establish a budget for Fiscal Year 2014 (start date, October 1, 2013) has an impact on some areas of immigration.  If you have any questions about how the government shutdown may impact your petitions, please contact Musillo Unkenholt.

United States Citizenship and Immigration Services:  USCIS operations continue despite the Federal Government shutdown, because fee-for-service activities performed by USCIS are not affected by a lapse in annual appropriated funding.  H-1B, L-1, I-140, and I-485 petitions and applications are expected to continue processing with little impact as a result of the federal government’s shutdown.

All USCIS offices worldwide are open for interviews and appointments as scheduled. E-Verify is an exception and is unavailable during the shutdown. For more information about how the shutdown is effecting E-Verify please visit www.dhs.gov/e-verify.

Department of Labor: Most DOL functions that impact immigration will stop working as a result of the federal shutdown.  The DOLwill neither accept nor process any applications or related materials (such as audit responses), it receives, including Labor Condition Applications, Applications for Prevailing Wage Determination, Applications for Temporary Employment Certification, or Applications for Permanent Employment Certification. The DOL’s web site, including the iCERT Visa Portal System and the PERM system, have become static and are unable to process any requests or allow authorized users to access their online accounts.

Department of State: The Department will continue as many normal operations as possible; operating status and available funding will need to be monitored continuously and closely, and planning for a lapse in appropriations must be continued. Visa issuance will be available in consulates that have adequate funding to continue operating.  Please contact our office to determine if the consulate you plan to attend will continue operating. 

Customs and Border Patrol: Inspection and law enforcement are considered "essential personnel," though staffing may be more limited than usual.  The borders will be open, and CBP is unsure of how the shutdown will affect the processing of applications filed at the border at this time.

State Agencies:  State agencies, such as driver’s licenses and professional licenses (e.g. Registered Nurse, Physical and Occupational Therapy licenses), are not impacted by the federal shutdown.

BREAKING! SENATE PASSES CIR

MU VISA ADVISOR: BREAKING! SENATE PASSES CIR

Today the Senate took the historic step of passing Comprehensive Immigration Reform, Senate bill S. 744 by a vote of 68-32.  This is a significant step on the path to the bill becoming law.  It is important to note that nothing has changed with this action.  While we are much closer, we are still quite a ways from any legal change.  The House must act.  The House is more conservative than the Senate. 

S. 744 does many things.  Many of the specifics will change as the House takes action.  Therefore it is much too early for employers to plan for CIR. 

What the House will do is a wide-open question.  The House will likely move slowly.  There are many factions of Republicans who are struggling to reconcile their disparate opinions.  If the Republicans can agree on the House side, then a House CIR bill could pass. 

Even if that happens, there is no guarantee that the senate and House bills can be reconciled.  At this point the odds are 50/50 that we get CIR in 2013, and the odds improved significantly with today’s Senate vote.

MU Law has been to Washington on several occasions in the last 90 days to speak with Congressional staff about employment-based immigration issues.  While no one knows what the final CIR bill will look like, but if CIR passes it will have these characteristics:

Greater H-1B visa numbers.  Current law allows 65,000 new “regular” H-1B visa approvals every fiscal ear and an additional 20,000 for graduates of American Master’s degree programs.  American businesses have regularly asked Congress to raise this H-1B quota.  Congress is hearing the call.  Most potential legislation calls for increased H-1B numbers.

Increased H-1B Enforcement. The trade-off for the greater H-1B numbers is greater enforcement regulation.  All versions of CIR step up funding for H-1B enforcement.

Special Third Party Placement Rules for H-1B Employers. Since January 2012, USCIS has held staffing companies to a higher level of scrutiny. Congress is now going further.  Placing employees at third-party worksites is outright prohibited for some employers and highly regulated in others.  

Abundant Green Card Numbers.  By increasing green card numbers, Congress hopes to incentivize employers and workers to become permanent residents. . This should mean faster green cards and less worrying about quotas.

E-Verify is here to stay.  E-verify is a federal program whereby voluntary employers can check a prospective employee’s work authorization.  Government contractors and some states have made E-verify mandatory.  Congress appears ready to require E-verify for all employers, likely phasing it in over a few years.

Shifting from Family Based Visa Numbers to Merit Based Immigrants.  One part of the CIR plan is that Congress appears to have settled on a merit-based green card.  A merit-based system would allow the Department of Homeland Security to weigh a number of factors, such as education, job prospects, US ties, and English fluency to prioritize an applicant’s visa.  The merit based system will come at the expense of the family categories and will eliminate the visa lottery program.

Please contact your MU immigration attorney if you have any questions about this MU Visa Advisor or any other immigration issue. 

ELECTRONIC I-94 CARDS

MU VISA ADVISOR: ELECTRONIC I-94 CARDS

In May, U.S. Customs and Border Protection (CBP) began implementing its plan to automate the Form I-94, Arrival/Departure Record.  CBP is substituting paper Forms I-94 with a passport stamp and an electronic record for some nonimmigrants arriving at air and sea ports.    Nonimmigrants arriving via a land border will continue to receive a paper Form I-94 from CBP.

The electronic record of admission may be accessed and printed at www.cbp.gov/I94.  Nonimmigrants are encouraged to print out their I-94 arrival record immediately after entry in order to insure that the information has been correctly inputted into the CBP electronic system.  If the information is incorrect, please contact us immediately.

MU Law employer-clients are encouraged to share this MU Visa Advisor with relevant employees.

Please contact your MU immigration attorney if you have any questions about this MU Visa Advisor or any other immigration issue. 

MU VISA ADVISOR: SENATE CIR OUTLINE RELEASED

An Outline of the Border Security, Economic Opportunity, and Immigration Modernization Act of 2013, which is the Senate’s "Gang of Eight" bill, has been released.  MU Law has posted a copy of the 17-page Outline on our Doc Stoc page.

It is important to recognize that this is just an Outline.  Several of the Outline's bullet points are inconsistent and outright contradictory with other bullet points.  It is also important to note that the bill is far from becoming law.  The Senate will have hearings to amend the bill throughout April and May. 

If the bill passes the Senate Judiciary Committee and the Senate as a whole, a separate Comprehensive Immigration Reform bill will be announced in the House of Representatives.  The House bill will also have to pass that chamber and then be remedied with the Senate bill.  Only then will it be presented to President Obama for signature.  The key take-away is that this bill is still many steps from becoming law. 

Keeping in mind that the final CIR may look different than this one, this MU Law Visa Advisor only highlights several key items that will be of interest to our clients and friends.  Also, although the 17-page Oultine includes sections on Border Protection and Undocumented Worker Legalization we have not summarized these areas of the law in this MU Law Visa Advisor since they are of lesser interest to our clients and friends.  

Here is the brief MU Law Summary of the Senate's CIR bill:

EMPLOYMENT-BASED GREEN CARDS
-          The Senate CIR bill calls for an immediate elimination of retrogression for currently-pending green card applications.  If this provision is true as listed in the Summary hundreds of thousands of long-delayed EB-2 and EB-3 applications would be immediately eligible for Adjustment of Status, Immigrant Visa appointments, and Green card issuance.  It is unclear how the USCIS and State Department would handle this immense overload of applications.
-          Going forward employment-based green card numbers would dramatically increase.  Theoretically this could mean that future retrogression is small.

EMPLOYMENT VERIFICATION
-          All employers will be required to use E-verify over a five-year phase in period, which will include enhanced photographic measures.

H-1B / L-1 VISAS
-          The H-1B visa cap will increase to 110,000, and can increase to 180,000 over seven years.
-          Spouses of H-1B visa holders will gain work eligibility.
-          H-1B prevailing wage rules may be changing, mandating higher wages for H-1B workers.  It is somewhat unclear in the Outline to what extent the prevailing wage rules will change.
-          Employers with more than 50 employees and who have 50% of their workforce who (a) hold H-1B and/or L-1 and (b) who do not have a green card pending, must pay an additional $10,000 in H-1B / L-1 filing fees.
-          Employers with more than 50 employees and who have 30% of their workforce who (a) hold H-1B and/or L-1 and (b) who do not have a green card pending, must pay an additional $5,000 in H-1B / L-1 filing fees.
-          By 2016 any employer who has more than 50% of its workforce on H-1B / L-1 status will be ineligible to petition for H-1B and/or L-1 visas.

-          All employers who wish to hire an H-1B must advertise the position on a government database for 30 days.

H-1B CAP LOTTERY ANNOUNCED

The USCIS has reached the statutory H-1B cap of 65,000 for fiscal year 2014 (H-1B Regular Cap). USCIS has also received more than 20,000 H-1B petitions filed on behalf of persons exempt from the cap under the advanced degree exemption (H-1B Masters Cap). This is the first year since FY 2008 that the cap has been reached so quickly. 

USCIS received approximately 124,000 H-1B petitions during the filing period, including petitions filed for the advanced degree exemption. On April 7, 2013, USCIS used a computer-generated random selection process (commonly known as a “lottery”) to select a sufficient number of petitions needed to meet the caps of 65,000 for the general category and 20,000 under the advanced degree exemption limit. For cap-subject petitions not randomly selected, USCIS will reject and return the petition with filing fees, unless it is found to be a duplicate filing. 

F-1 students who wish to use the "cap-gap" rules must be lottery winners. F-1 students who do not win the lottery must exit the US at the conclusion of their F-1 period.

MU VISA ADVISOR: H-1B CAP HAS BEEN REACHED

MU VISA ADVISOR: H-1B CAP HAS BEEN REACHED

On Friday the USCIS announced that the H-1B cap has been reached.  The USCIS will hold a lottery and return any petitions for Beneficiaries who do not win the lottery along with all filing fees.

F-1 students who wish to use the "cap-gap" rules must be lottery winners. F-1 students who do not win the lottery must exit the US at the conclusion of their F-1 period. 

H-1B cap-subject petitions include:

* International students working on an EAD card under an OPT or CPT program after having attended a U.S. school

* International employees working on a TN may need an H-1B filed for them in order for them to pursue a permanent residency (green card) case
 

* Prospective international employees in another visa status e.g. H-4, L-2, J-1, F-1
 

* H-1B workers with a cap exempt organization
 

* Prospective international employees currently living abroad

H-1B petitions that are not subject to the H-1B cap include:

* H-1B extension petitions

* H-1B transfer petitions

* Certain H-1B petitioners for University employers

* Certain H-1B petitions for Non-Profit Research organizations

Please contact your MU immigration attorney if you have any questions about this MU Visa Advisor or any other immigration issue. 

MU VISA ADVISOR: H-1B CAP TO BE REACHED ON DAY ONE

In a March 15, 2013 press release, the USCIS announced, “based on feedback from a number of stakeholders, USCIS anticipates that it may receive more petitions than the H-1B cap between April 1, 2013 and April 5, 2013.”

Any H-1B cap–subject petition that is filed between April 1 and April 5 is treated as a first-day filing.  In accord with this information, MU Law strongly urges all clients to be prepared to file their H-1B cap-subject petitions ASAP. 

MU Law clients are reminded that all H-1B petitions must include a certified Department of Labor - Labor Condition Application (LCA).  The LCA takes 8 days to be certified, and so any H-1B cap-subject petition that is not initiated at our office by March 24, 2013 will not accepted in this year’s H-1B cap.

If the USCIS is correct and more than the 65,000 H-1B cap-subject petitions are reached on the first day, the USCIS will hold a lottery and return any H-1B petitions that are not lottery ‘winners’.  The USCIS will also refund the entire H-1B filing fee.

H-1B cap-subject petitions include:
* International students working on an EAD card under an OPT or CPT program after having attended a U.S. school
* International employees working on a TN may need an H-1B filed for them in order for them to pursue a permanent residency (green card) case
* Prospective international employees in another visa status e.g. H-4, L-2, J-1, F-1
* H-1B workers with a cap exempt organization
* Prospective international employees currently living abroad

H-1B petitions that are not subject to the H-1B cap include:
* H-1B extension petitions
* H-1B transfer petitions
* Certain H-1B petitioners for University employers
* Certain H-1B petitions for Non-Profit Research organizations

MU VISA ADVISOR:   H-1B TELECONFERENCE FEB 13

In anticipation of the H-1B cap filing date of April 1, 2013, MU Law will be holding a free teleconference for our clients on February 13, 2013 at 2PM / 11AM PT.  Interested clients should email MU’s Lauren Gramke, who can register you for the teleconference.

Last year the H-1B cap was reached on June 11, 2012; we expect that the demand will be greater this year.  It is imperative that all H-1B cap-subject Petitions are filled on April 1, 2013 in order to insure that the H-1B Petition qualifies under this year’s H-1B cap.

H-1B cap-subject petitions include:
* International students working on an EAD card under an OPT or CPT program after having attended a U.S. school
* International employees working on a TN may need an H-1B filed for them in order for them to pursue a permanent residency (green card) case
* Prospective international employees in another visa status e.g. H-4, L-2, J-1, F-1
* H-1B workers with a cap exempt organization
* Prospective international employees currently living abroad
In addition to the H-1B cap discussion, MU lawyers will also provide an employment-based immigration legislation update.

Please contact your MU immigration attorney if you have any questions about this MU Visa Advisor or any other immigration issue.