H1B Visa Lawyer Blog

There has been a great deal of concern generated as a result of recent arrests in connection with H1B compliance. Many companies do not know where to begin in order to address these matters. For the benefit of our readers, some matters for consideration are provided here to help employers comply with the U.S. Department of Labor (DOL) and the U.S. Citizenship and Immigration Services (USCIS) regulations.

Given the depth and complexities of the regulatory requirements related to the H1B Labor Condition Application (LCA), violations are possible even for those trying hard to comply with the rules of the system. The DOL recognizes this by having certain inadvertent violations classified as technical in nature. Following are some basic steps employers can take to address a common H1B compliance concern.

Revoke H1B Petitions for Terminated Employees

When H1B employment terminates, it is necessary for the employer to document the termination and revoke the H1B petition. When employment has ended and the H1B petition has been revoked, there is a clear end to wage obligations. Even when there is a clear end date to the employment, but no revocation, there have been cases in which wages were found to be appropriate until the confirmation date of H1B petition revocation. Thus, if an employee is no longer working for a company, the H1B petition should be revoked. The employer needs to keep complete documentation of the employment termination, request revocation, and request USCIS confirmation that H1B was revoked.

Terminate or Pay Benched H1B Employees

The LCA regulations prohibit benching (failing to pay) H1B workers during times when there is a lack of work. The LCA requires workers be paid the prevailing wage during their employment. It is required that employers with workers for whom they have no work terminate the employees and revoke the H1B petitions. If the employer has some work, it may be worth amending the H1B petitions for part-time employment.

While it is possible for an employee to request leave, employers should not try to use this provision as a disguise for benching, since it could be tantamount to fraud or misrepresentation. This effort is usually quite transparent, as workers in the United States do not routinely request extended periods of unpaid leave, other than for maternity or serious personal or family emergency situations. Such claims, therefore, need to be well supported and should be consistent with normal U.S. business practices and common sense.

If an employer simply does not have work for an individual to perform, and cannot afford to pay the employee, then, unfortunately, it is time to terminate the position and revoke the H1B petition. While most employers would prefer not terminate good workers, compliance with H1B law and requirements is mandatory to avoid problems with enforcement and in order to be allowed to continue sponsoring H1B workers who are needed. Employees in this difficult situation are not without options. If necessary, this matter should be discussed in consultation with a qualified, experienced immigration attorney.

Obligation Applies upon Change of Status

If a foreign national employee is in the United States and has obtained a change of status to H1B, the employer's obligation to pay begins on the first day of the H1B validity or "eligible to work" date, if the employee makes her/himself available. Employers sometimes are under the mistaken impression that they can control the obligation to pay new H1B employees by not releasing the H1B I-94 documents. They erroneously believe that the H1B LCA obligations are not activated until they say so. This is not correct for foreign nationals within the U.S. for whom the employers have requested and obtained changes of status. It is also not correct for foreign nationals who have entered the U.S. and who hold H1B status based upon the particular employer's approved H1B petition.

Employers Must Show Good Faith to Avoid Harsher Penalties

The DOL has some discretion, once it has conducted an investigation, as to the types and levels of penalties assessed. There may be less harsh consequences for past violations, if there is evidence of current compliance. While it is appropriate to take remedial action to fix problems for the future, however, there should not be any attempted cover up or falsification. Efforts of this type will make the problem worse, potentially leading to criminal charges. Revoking H1B petitions is a typical remedial action. Other corrective steps often include filing H1B petition amendments and new LCAs for changed locations of employment, paying back wages, and organizing documentation, including public access files.

Employers must take H1B compliance seriously. It is important to recognize the seriousness of the obligations contained in the LCA. At the heart of the matter is the need to have proper LCAs in place and to pay the required wages. Employees should seek sound legal advice to know their options, rather than trying to convince their H1B-petitioning employers not to revoke their petitions. Employers with concerns about their H1B practices should contact MVP Law Group for legal advice. It may be necessary for employers to make changes in their practices and business models to ensure compliance with H1B requirements.

~Article contributed by Stacey Bell, Senior Paralegal

The question of whether a new or amended H-1B petition is required when the beneficiary’s worksite changes has been raised with USCIS at the October 5, 2011 stakeholders meeting (AILA Doc. No. 11100570) and again at the March 29, 2012 stakeholders meeting (AILA Doc. No. 12033045). AILA supports the position taken in the October 23, 2003, Efren Hernandez letter, that an amended Form I-129 is not needed for geographic moves so long as the following conditions are met:

1) an LCA has been filed and certified for the new location prior to the employee’s move to the new location;

2) the LCA has been posted in accordance with DOL regulations;

3) other wage and hour obligations are met; and

4) there are no other material changes to the terms and conditions of employment (AILA Doc. No. 03112118).

In addition, 20 CFR §655.735 provides guidance on short-term placement of H-1B nonimmigrants at places of employment within and outside the areas of intended employment listed on the LCA.

At the March 29, 2012 meeting, USCIS stated that it is continuing to review and develop new guidance on amended H-1B petitions as part of its overall policy review and that it may issue additional guidance on this issue in the USCIS Policy Manual. However, the California Service Center (CSC) appears to be taking the position that an amended petition must be filed for a geographic job location change. At a CSC Stakeholder meeting held on August 10, 2011, the CSC stated that 8 CFR §214.2 requires an amended or new petition to reflect material changes in the terms and conditions of an H-1B petition. Generally, it is the position of the CSC that an amended H-1B petition should be filed if an LCA is filed after approval of an H-1B petition. (AILA Doc. No. 11093037).

Practitioners are reporting site audits and revocation of petitions where USCIS could not find the beneficiary of the petition at the worksite listed in the initial petition. Despite documentation of an LCA for the beneficiary’s new worksite, as well as additional documentation supporting the worksite change, the CSC nevertheless has revoked the H-1B petition stating that an amended petition must be filed because the new worksite was not shown on the original petition.

Until USCIS headquarters issues a definitive answer as to whether a new or amended petition is needed for a change in location, MVP Law Group will continue to exercise caution by advising their clients to file a new LCA and amended petition prior to the geographic relocation of the employee.

Source of Information: "AILA InfoNet Doc. No. 12083048 (posted Aug. 30, 2012)"

In an effort to detect, deter and combat immigration benefit fraud and strengthen efforts in ensuring benefits are not granted to those who threaten national security or public safety, the United States Citizenship and Immigration Services’ (USCIS) Office of Fraud Detection and National Security (FDNS) have commenced an assessment of the H-1B nonimmigrant visa program. As part of the assessment program, FDNS officers collect information during site visits to verify information pertaining to petitions that are pending and already approved.

The FDNS consists of approximately 650 individuals, including Immigration Officers, Intelligence Research Specialists, and Analysts located in field offices throughout the United States. FDNS has also contracted with multiple private investigation firms to conduct site visits on behalf of FDNS.

These visits by FDNS officers are unannounced and may take place at the employer’s principal place of business and/or the H-1B non-immigrant’s work location (end client site). FDNS Officers do not need a subpoena for the site visit because the regulations governing the filing of immigration petitions allow the government to take testimony and conduct broad investigations relating to the petitions. However, USCIS will provide an opportunity for an Employer to address any adverse or derogatory information that may result from these types of site visits. An employer may request that counsel be present; however FDNS will not reschedule the visit just for counsel, therefore, if requested, counsel can be present via telephone for the site visit.

During a site visit, the FDNS Officer will ask questions to verify information contained in a specific immigration petition. They will have a copy of the petition, ask to speak with the employer’s representative (the one who signs immigration forms), and will ask questions regarding the employer’s business, locations, number of employees, and the number of H-1B petitions previously filed. They may also request to review company’s tax returns, quarterly wage reports, among other documents to verify that the Employer is a bona fide business entity. Additionally, the Officer may ask questions regarding the H-1B non-immigrant’s title, job duties, work location and salary; and may ask to review the non-immigrant’s most recent pay stub and Form W-2. FDNS Officers may also inquire about the Employer’s Immigration Counsel.

After interviewing the employer’s representative, the FDNS Officer may request a tour of the facility, take photographs, and may even request to interview the H-1B beneficiary. The Officer will then ask the beneficiary similar questions to the ones asked of the Employer’s representative: the beneficiary’s job title, job duties, responsibilities, employment dates, position location, requirements for the position, academic background, previous employment experience, current address, and information about family members (husband/wife and/or children). Additionally, the Officer may ask a colleague of the beneficiary similar questions about the beneficiary.

Typically, these H-1B site visits last for less than an hour after the walk thru, documentation gathering and interviews are complete.

Continue reading "USCIS Office of Fraud Detection & National Security Commence H-1B Assessment Program: Site Visits" »

Tighter government oversight over the H-1B visa program and permanent employment-based immigration expected.

On October 8, 2008, the U.S. Citizenship & Immigration Service (USCIS) released a report that 13% of all H-1B petitions filed on behalf of U.S. employers are fraudulent. The same report also stated that another 7% of those petitions contain some sort of technical violation. The report’s conclusion states: “Given the significant vulnerability, USCIS is making procedural changes, which will be described in a forthcoming document.”

Continue reading "2009 – The Year of Immigration Compliance" »

The U.S. immigration system is constantly changing. At a recent stakeholders meeting, the U.S. Department of Labor (DOL) announced several upcoming changes to the Labor Certification and Labor Condition Application process.

Expect More PERM Audits
The DOL announced that with Backlog Elimination Centers (BECs) closing, the DOL will now be now focusing its resources on parts of the PERM regulations that were not focused on earlier, including audits and supervised recruitment. Since April 2007, Immigration attorneys have seen a spike in PERM audits by the DOL. It looks like Audits are going to be commonplace from now on. DOL announced that both targeted and random PERM audits will continue. The DOL stated that the 60 to 90 day timeframe discussed in the preamble to the PERM regulation is not binding and is irrelevant if there is an audit. Therefore, once a case has gone into audit, it will most likely not be adjudicated within the 60 to 90 timeframe.

As of July 15th, the DOL was working on cases that have not been audited with a priority date of April 2008. Currently, there is only one Audit queue. The DOL does not maintain separate queues for random and targeted audits. As of Mid July, DOL was working on audited cases with Priority dates of March 2007.

H-1B LCAs will be scrutinized more closely
The DOL also stated that Labor Condition Applications (LCAs) associated with the H-1B filing process will be scrutinized more closely beginning this fall. Currently LCAs are approved within a matter of seconds once they are applied for through the DOL’s online application system. The DOL expects such applications to take up to 7 days to be reviewed and certified by the DOL. If alternate wage surveys are submitted with the LCAs, the certification times would be even longer. Therefore, the days of starting a new H-1B petition in a couple of days pursuant to a change in employer will soon come to an end.

The Immigration and Nationality Act (INA) permits employers to employ nonimmigrant alien workers in H-1B specialty occupations in the United States. In order to employ H-1B non-immigrants, an employer must obtain certification from the United States Department of Labor (DOL) after filing a Labor Condition Application (LCA). The LCA stipulates the wage levels and working conditions that the employer guarantees for the H-1B non-immigrants. After the employer received a certified LCA, the employer then petitions The United States Citizenship and Immigration Services (USCIS) for an H-1B visa on behalf of the nonimmigrant. An employer violates the INA if, for employment-related reasons, it fails to pay an H-1B nonimmigrant worker who is in "nonproductive status." Employment-related nonproductive status results from factors such as lack of available work for the non-immigrant or a non-immigrant's lack of a permit or license. Furthermore, an employer violates the INA when it deducts from a nonimmigrant's wages filing fees that INS collects from the employer to process the H-1B petition.

In a recent decision, Rajan v. International Business Solutions, Ltd.,
03-104 (ARB 8/31/04), the U.S. Department of Labor’s Administrative Review Board (ARB) examined some important H-1B related issues relating to the LCA. In particular, the ARB benching in the context of the LCA, the validity of a beneficiary’s employment start and end dates and payment of H-1B fees by an H-1B beneficiary.

Case Background
International Business Solutions, Ltd (IBS), hired Ms. Rajan in a specialty occupation on an H-1B. IBS subsequently discharged Ms. Rajan after it failed to pay her salary while she was in nonproductive status (i.e., she was on “bench”). Ms. Rajan complained to theDOL’s Wage and Hour Division seeking back wages and reimbursement of $1,500 she paid to IBS, at its request, for the H-1B filing fee. After an investigation, the DOL found that IBS had violated the INA by failing to post notice of the LCA and failing properly to establish the prevailing wage rate. The DOL’s administrator did not make findings regarding Ms. Rajan's complaint that IBS failed to pay her wages and charged her for the H-1B filing fee. Ms. Rajan then requested a hearing before an Administrative Law Judge (ALJ) who found that IBS violated the INA by failing to compensate her while in nonproductive status and by assessing her money to pay the H-1B filing fee. The ALJ accordingly ordered IBS to pay Ms. Rajan back wages and to reimburse her for the money she had paid IBS for the fee. The ALJ remanded the case to the Administrator to determine whether to impose a civil money penalty for the filing fee violation. IBS petitioned for review of the ALJ's decision.

Continue reading "The fine for "Benching" H-1B employees" »

As I had recently mentioned in another one of my other recent blog postings, the American Immigration Lawyers Association (AILA) had reported that the U.S. Citizenship and Immigration Service (USCIS) was going to resume premium processing of I-140 applications for certain individuals. Today, the USCIS released an update and fact sheet addressing this issue.

In its update, the USCIS confirms that on June 16, 2008 it will make available its Premium Processing Service for individuals who are on H-1B status and are reaching the end of their sixth year on H-1B and have I-140 petitions (Immigrant Petition for Alien Worker) filed on their behalf (in our previous report we had reported that USCIS officials were going to open up premium processing on July 16, 2008).

Under the Premium Processing Program, the USCIS guarantees that petitioners would get a response (i.e., approval, denial, request for additional evidence, etc.) within 15 calendar days. This is really good news for individuals running our of time on H-1B status as according to the American Competitiveness in the Twenty-first Century Act of 2000 (AC21), and H-1B nonimmigrant is permitted to extend their status for three years beyond the six year limit provided that the alien is the beneficiary of an approved I-140 petition and an employment-based preference visa is not available for that individual.

Click here to view the USCIS Update on I-140 Premium Processing.

The H-1B , is an employment based non-immigrant visa, that enables United States employers to seek highly skilled foreigner workers from around the world to increase productivity and develop new innovations within their fields which ultimately helps the U.S. economy. In return, the U.S. remains at the forefront of technology among other nations of the world, and continues as a major competitor in all other fields. The system was designed to protect both U.S. and foreign workers by: (1) including labor certifications and attestations; (2) implementing costly filing fees; (3) requiring extensive background documentation/proof; and (4) conducting on-site employer investigations and continuous oversight by several federal agencies.

The H-1B program contains strong provisions to ensure that U.S. and foreign workers are protected. Employers must guarantee that the U.S. workers will not be adversely affected upon the hiring of an H-1B professional. A U.S. employer using the program must also guarantee that: (1) the foreign professional will not adversely affect the working conditions of U.S. colleagues; (2) U.S. colleagues will be given notice of the foreign professional’s presence among them; (3) there is no strike or lockout at the worksite; and (4) the position requires a professional in a specialty occupation and the intended employee has the required qualifications. Employers who fail to comply with the Department of Labor (“DOL”) regulations may become subject to investigation, civil and administrative penalties, payment of back wages, and disbarment from participation in key immigration programs.

To ensure that U.S. and foreign workers are protected, each employer must maintain an audit/public access file for each H-1B applicant it has acquired. It is important to keep the public access file separate from all other employee and business files. The employer is required to have a public inspection file and DOL is able to audit that inspection file as well as payroll records to make sure the foreign worker is/was being paid the wage stated in the application. Public access files must be maintained for a period of one year beyond the last date on which any H-1B nonimmigrant was employed under the labor condition application.

Although H-1B audits are not that common, the H-1B program is currently undergoing scrutiny. Therefore, it is extremely important to maintain an organized H-1B audit/public access file, so you may expedite the audit and possibly save the company from any potential liability due to mingled or misplaced files. Audits may occur due to former employee complaints, randomly or on a profile basis. For a random audit, the DOL simply selects an employer to audit. However, a profile audit occurs when the DOL discovers a significant variation of offenses in a particular industry/area and the employer is part of the same industry/area, or the DOL has a profile for violators and the employer meets the profile. Evidently, an employer should expect an audit at some point because it is the DOL’s intent to eventually audit everyone who files LCAs.

To avoid potential costly fines, payment of back wages and/or disbarment from participation in key immigration programs, it is our recommendation that employers keep the following documents within each H-1B applicant’s separate public access file:

• A copy of each certified labor condition application (Form ETA 9035 or Form ETA 9035E) including all pages and cover sheet;
• Documentation which provides the wage rate to be paid to the non-immigrant (ex. Employment offer/agreement);
• A clear explanation of the system that the employer used to set the “actual wage” the employer has paid or will pay workers in the occupation sought (ex. Statement/evidence of employer’s pay-system or scale);
• Documentation which the employer used to establish the “prevailing wage” for the occupation sought (ex. Printout from http://www.flcdatacenter.com);
• A copy of the notice of posting including dates of posting, and a statement identifying the two posting locations;
• A statement confirming that a copy of the approved LCA was provided to the H-1B worker;
• If employer is H-1B dependent and/or a willful violator, and indicates on the LCA that only “exempt” H-1B non-immigrants will be employed, a list of such “exempt” H-1B non-immigrants should be within the file;
• If employer is H-1B dependent and/or a willful violator, and indicates such on the LCA, a summary of the recruitment methods used and the time frames of recruitment of U.S. workers, or copies of documents establishing this information should be within the file