Categories Department of Labor News & Updates USCIS

H-1B Cap Lottery System Modification – Final Rule

Tomorrow, January 8, 2021, the Department of Homeland Security will publish a final rule modifying the H-1B lottery ahead of Cap season, which starts in March. The rule modifies the manner in which the lottery is conducted by prioritizing applications received on the basis of the wage level of the position in relation to similar positions in the geographic area. This rule would eliminate the random selection process that has historically been used. Instead, cases that show a higher prevailing wage according to the corresponding LCA would be given preference over cases filed using lower prevailing wage levels.

The rule is set to go into effect 60 days from being published, which means it would apply to this year’s H-1B cap season.

The rule is likely to be challenged and could potentially be set aside for failure to follow the required administrative procedure for rulemaking. However, the Biden Administration has expressed support for the concept of H-1B cap allocation based on wage level, so we will be monitoring this situation closely and will provide updates as they become available.

Categories Global News & Updates

EU-UK Trade and Cooperation Agreement’s Impact on Immigration

The UK and EU entered into the Trade and Cooperation Agreement last week, averting a no deal Brexit. The EU will apply the agreement provisionally from January 1, pending ratification, so that the European Parliament can consider the agreement before the EU ratifies it fully. This means the EU will have the opportunity to review whether the UK’s legislation fully implements the agreement.

UK and EU citizens who established EU free movement rights before December 31, 2020 retain them under the UK-EU Withdrawal Agreement if they have registered their settled status by June 30, 2021.

Visas may be required for travel between the UK and EU for those who have not established EU free movement rights. However, the Trade and Cooperation Agreement provides for visa-free short-term business trips of up to 90 days in any 180 period, if they fall within a limited list of permitted activities.

Our UK partner, Lewis Silkin, has authored an alert that provides more specifics on the impact to immigration.

We are continuing to monitor this situation and will provide updates as they become available.

Categories Department of State News & Updates

Trump Extends Ban on Certain Immigration Applications

President Trump has extended Presidential Proclamations (P.P.) 10014 and 10052 through March 31, 2021. As previously reported, P.P. 10014 suspends the entry of immigrant visa applicants through consular processing.

P.P. 10052 suspends the entry of certain nonimmigrant visa applicants who have been deemed to present a risk to the US labor market during the economic recovery following the pandemic.  Specifically, this suspension applies to applicants for H-1B, H-2B, and L-1 visas; J-1 visa applicants participating in the intern, trainee, teacher, camp counselor, au pair, or summer work travel programs; and any spouses or children of covered applicants applying for H-4, L-2, or J-2 visas.

Please contact your Graham Adair attorney for case-specific advice.

Categories Compliance Department of Labor News & Updates USCIS

Federal Court Sets Aside the DOL Wage Increase and the DHS H-1B Restrictions Rules

Yesterday, December 1, 2020, a federal judge in California issued an order setting aside two new rules from the Department of Labor and Department of Homeland Security, respectively. The first rule from the Department of Labor had gone into effect immediately and dramatically increased the prevailing wages that were required for H-1B and PERM applications. That rule has been set aside by the court as having improperly bypassed the normal notice and comment period required under federal law. It will likely take the Department of Labor a few days to revert back to the lower prevailing wage requirements. It is unclear as to whether the government will appeal this decision, but we do anticipate that even if there is an appeal that the rule will not be in effect while an appeal works its way through the court system. This was a widely expected outcome and will be welcome news to employers and employees alike.

The second rule from the Department of Homeland Security was set to go into effect next week, and it was also set aside by the federal judge in California. The rule would have enacted new restrictions and requirements around H-1B petitions. This outcome was also widely expected and is good news for employers who use the H-1B program.

Please reach out to your Graham Adair attorney if you have any questions and we will continue to provide updates as they become available on this situation.

Categories News & Updates USCIS

DHS Rule Places New Restrictions on H-1Bs

Today, the Department of Homeland Security (DHS) published an interim rule that places additional restrictions on H-1Bs. This rule has been rumored for months and was rushed through the standard rulemaking process, bypassing the traditional notice and comment period. It is scheduled to go into effect in 60 days, however, bypassing standard rulemaking procedures does leave it open to potential legal challenges.

This rule, if it goes into effect, will do two primary things:

  • Specialty Occupation. It codifies the definition of “specialty occupation” and makes the criteria to meet specialty occupation more stringent. Specifically, the rule says that a bachelor’s degree specific to the H-1B position is required, and that positions allowing for “general degrees,” such as liberal arts or business management, would not be sufficient.
  • Third-Party Worksites. It also establishes new restrictions on employees who work at third-party worksites. This includes specific requirements to demonstrate employer-employee relationships, such as proving that the sponsoring company controls and supervises the work. It also limits the duration of third-party worksite H-1Bs to 1-year increments. It is important to note that employees working from their homes are not considered to be at a third-party worksite.

There are other provisions in the regulation, but the two items listed above will have the biggest impact on the H-1B process. It should be noted that this rule is going to face significant legal challenges, not only for bypassing the standard rulemaking procedures, but also for applying a different standard to “specialty occupation” that seems to go beyond what was contemplated in the original H-1B legislation.

It is possible to submit comments to the DHS on how this rule will impact employers, but the DHS is not required consider those comments before this rule is implemented. We will post updates on any legal action as they become available.