April 8, 2008

Hello,

IMMIGRATION LAW UPDATE:

2009 H-1B CAP HAS BEEN REACHED

On April 8, 2008 the US Citizenship and Immigration Services (USCIS) announced that for the fiscal year 2009 the agency has received more than enough applications for new H-1B visas. This includes the normal 65,000 quota (also called a "cap") and the additional 20,000 quota for persons who have an advanced degree (more than a bachelor degree) from a US university. The H-1B is a temporary work status used by US employers for hiring foreign nationals to perform jobs which require a bachelor degree or higher (professionals), and the employer must prove it will pay the employee the same or more than a similar worker for a comparable job in the geographic location. The government's fiscal year runs from October 1st until September 30th. H-1B applications can be filed up to 6 months before October 1st, and accordingly USCIS started to receive thousands of applications on April 1st. For more on H-1B visas see the Clark Hill website.

Accordingly, all H-1B applications filed for the 2009 cap will be placed into a random selection process to determine which cases will be accepted for processing and which cases will be returned. This process is expected to take several months to be completed (given the pattern we have seen for the past several years). Premium processing of H-1B applications, which ensures adjudication of an H-1B application in 15 days, is believed to have been suspended until this selection process is complete.

Persons who have been issued an H-1B under a previous cap, for work with a private employer, and have not used all of their time on an H-1B (generally limited to 6 years), and persons who work for or in furtherance of a US university or research organization, are exempt from the H-1B cap.

USCIS Announced a New H-1B Regulation - No Multiple Filings and a Five (5) Day Filing Window

The US Citizenship and Immigration Services (USCIS) issued a new regulation on March 19th which made several changes to the H-1B application process. The stated purpose of the new rule is to promote equal opportunity among all petitioners for H-1B status. Specifically, the USCIS will now either deny or revoke any H-1B where the same employer filed multiple petitions for the same foreign national (approximately 500 duplicate filings were received for the 2008 cap). However, related employers (e.g. a parent company and subsidiary with different tax numbers) may file petitions for the same foreign national for different positions, so long as the petition is based on a legitimate business need for both entities, and the petition is not in essence a duplicate filing. Also under the new rule, the USCIS will no longer refund filing fees for duplicate or multiple H-1B petitions for the same employer.

Under this rule, USCIS will now accept new H-1B petitions that are filed during the first five business days available for the new fiscal year. Accordingly, the window to have an H-1B application submitted and received by USCIS for the 2009 fiscal year was available from April 1st until April 7th (5 business days).

Finally, if a petition incorrectly states that the foreign national is exempt from any H-1B cap, the petition will be denied if no H-1B visa numbers are available, and filing fees will not be refunded.

CHANGES MADE TO F-1 STUDENTS AND OPT WORK AUTHORIZATION

As described on the Clark Hill website, foreign nationals who attend a US university, and have temporary F-1 status, may secure temporary work status, called optional practical training (OPT), for up to 12 months at the end of a course of study. Under a new regulation issued by the US Customs Enforcement (ICE), several changes are made to this program, which are summarized below. USCIS has issued a brief summary of the new provision. These provisions have been implemented as an H-1B "cap-gap" protection for these students.

All F-1 students with OPT work status are allowed to continue working until October 1, 2008, even if the OPT will expire, as long as the student is the beneficiary of a pending or approved H-1B application. If the H-1B application is rejected (due to the cap) or denied, this provision ends for that foreign national.

In addition, certain students can extend their OPT work authorization for an additional 17 months, bringing the total to 29 months of OPT work authorization, if the conditions detailed below are met. The student must:

·  Have completed a degree in science, technology, engineering, or mathematics (STEM)

·  Be working for an employer who is registered under E-Verify

·  Be currently participating in an OPT program

·  Be maintaining F-1 status

·  Apply within 90 days before the current OPT expires for this special extension

·  Have an employer who will report to the foreign national's designated school official within 48 hours if the student stops working

·  Apply for the additional 17 months of OPT work authorization no less than 90 days before the current OPT expires, and may continue working for 180 days while the application is pending

·  Not be unemployed for more than 120 days (currently limited to 90 days)

MICHIGAN ATTORNEY GENERAL RULES ON MARRIAGE LICENSES

Michigan Attorney General Mike Cox recently issued an opinion that, under Michigan law, marriage license applicants need not provide a social security number on the application if he/she agrees to swear to having never been issued a social security number. The Attorney General's Opinion further states that while county clerks "are not authorized" to investigate the reasons why the applicant has failed to offer a social security number, they may forward "significant information to the appropriate authorities" if circumstances so warrant. A few Michigan counties were not issuing marriage licenses if one of the applicants did not have a social security number. This may have been occurring if an applicant was not in a lawful US immigration status. Marriage to a US citizen does not ensure that the foreign national will be issued a US green card, or be allowed to remain in the US. For more on family based green cards see the Clark Hill website.

LEGISLATION INTRODUCED ADDRESSING HIGH-SKILLED EMPLOYMENT VISAS

Several new bills have been introduced to increase the number of H-1B visas available per year. Clark Hill attorneys were recently in Washington DC, and while we support an increase in the H-1B quota, these bills are not expected to be passed. Brief summaries are below.

·  Arizona Democratic House Representative Gabrielle Giffords introduced the "Innovation Employment Act (H.R. 5630) which would double the H-1B visa limit for fiscal year 2008 and each subsequent year thereafter. The bill also provides for an automatic increase through fiscal year 2015 if the 130,000 cap is reached in 2009.

·  A comparable bill entitled, the "SUSTAIN" Act, (Strengthening United States Technology And Innovation Now) was introduced by Texas Republican House Representative Lamar Smith, and would raise the annual H-1B cap to 195,000 for 2008 and 2009. Smith sees the SUSTAIN Act as an "emergency fix" which will allow American companies to recruit the best graduates regardless of their nationality.

·  Democratic Representative Patrick Kennedy and Republic Representative Michael McCaul introduced the New American Innovators Act (H.R. 5634) which would allow foreign-born, Ph.D. graduates from US colleges and universities a smoother path toward obtaining a green card.

U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT ("ICE") UPDATE

On March 25, 2008, thirty-four foreign nationals accused of working without authorization were recently arrested in an Immigration and Customs Enforcement (ICE) raid at the Memphis International Airport as part of an ongoing criminal worksite investigation. The workers were employed by various contractors and subcontractors to build the new National Guard Air Base in Memphis, Tennessee.

MISSISSIPPI GOVERNOR SIGNS BILL MANDATING USE OF E-VERIFY

Republican Governor Haley Barbour cautiously signed into law the Mississippi Employment Protection Act (S.B. 2988) which requires employers to participate in the US government's employment verification program, E-Verify, for I-9 and employment verification. See the Department of Homeland Security website for more on E-Verify.

RICO CLAIM ALLOWED TO PROCEED

A federal judge in Ohio refused to dismiss racketeering allegations against three freight airline officials of ABX Air, Inc. and DHL Express. The judge agreed that company officials "approved and implemented a policy within ABX and DHL to operate an illegal immigrant hiring scheme," placing thousands of possibly undocumented temporary workers at ABS and DHL over a six-year period (Hager v ABX Air Inc., S.D. Ohio, No. 07-00317). A recent case in the Sixth Circuit Court of Appeals was allowed to proceed to trial under a similar claim, but was later dismissed for failing to prove that the hiring of illegal workers was the cause of the plaintiff's alleged harm of lower wages.

CARPENTER'S UNION SUES DEVELOPER FOR WORKER MISCLASSIFICATION

The New Jersey Regional Council of Carpenters and Brookside Construction Corporation have filed a class action against the nation's largest home builder, D. R. Horton, Inc. and TOSA Construction, Inc. for knowingly employing "undocumented workers" and intentionally misclassifying them as independent contractors to cut labor costs. Plaintiffs allege that the misclassified workers are less likely to apply for workers' compensation for workplace injuries and engage in organizing activities.

UTAH GOVERNOR SIGN NEW IMMIGRATION BILL

Governor Jon Huntsman signed a comprehensive immigration bill (S.B.81) designed to punish foreign nationals not authorized to remain in the US and allow local law enforcement agencies to enforce immigration laws in routine traffic stops. The bill also forces employers who have contracts with the state to verify the US documentation status of their workers through E-Verify. The new law goes into effect in early 2009. See the Department of Homeland Security website for more on E-Verify.

Clark Hill's 24th Annual Employment Law Conference

Clark Hill's Employment Law Group will present its 24th Annual Employment Law Conference on May 8th in Dearborn, Michigan. Clark Hill offers this learning opportunity to CEOs, in-house corporate counsel, human resources professionals and others involved in the increasingly complex field of employment, labor and immigration law.

 

 


Contact Listing

 

 

Employment

Immigration

 


Michael P. Nowlan
Immigration Co-Practice Group Leader

 

(313) 965-8666

Kelli B. Matthew
Immigration Co-Practice Group Leader

 

(313) 965-8576*

 

 

 

*designates a non-attorney

 

This newsletter is prepared by Clark Hill PLC to provide general information on recent legal developments of interest to our readers. This publication is notintended to, nor does it, provide legal or other professional advice for any specific situation or create an attorney-client relationship. Clark Hill attorneys provide legal advice only upon the execution of a engagement letter establishing a formal attorney-client relationship. We would be pleased to provide such legal assistance as you may require on these and other subjects if you directly contact a Clark Hill attorney and establish an attorney-client relationship.

 

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