Legislation Pending: Global Competitiveness Act Of 2008
Saturday, May 31st, 2008On April 10, 2008, legislation (Senate Bill 2839)– the proposed Global Competiveness Act of 2008– was introduced to the U.S Senate and referred to that body’s Judiciary Committee. Over all, S. 2839 proposes to ease restrictions on the number of visas available to skilled employees while at the same time raising filing fees for some categories of employers and imposing more restrictions on the manner in which H-1B workers can be employed in the U.S. At the outset, S. 2839 raises for fiscal years 2009-2011 the H-1B visa quota from the current 65,000 visas to 115,000 visas. With respect to foreign graduates of American MA and PH.d programs, the visa quota would be raised from the current 20,000 to 30,000. At the same time, the Bill proposes substantially to raise filing fees: For employers with 25 workers or more the current filing fee is $1,500; this corporate filing fee would be raised to $2,250. The Bill also purports to eliminate the ability of U.S. employers to outsource their H-1B employees to third-party employers. As provided by the proposed Bill, U.S. employers would be prohibited from allowing H-1B workers to be employed at the worksites of third-party employers unless the H-1B is performing a service or providing a product on behalf of the petitioner-employer. The objective of the Bill in this respect is to preclude U.S. employers from outsourcing their H-1B employee for purposes of providing labor to non-petitioning employers. The bill would also preclude employers (who are not H-1B dependant) from advertising their job positions in a manner that would discourage U.S. applicants by representing that the positions are only available to H-1B nonimmigrants or that H-1B non-immigrants would be given priority. The Bill would also double the sanctions that could be imposed on employers for violating H-1B regulations.
On its face, C-G’s view is that the Bill does not adequately address the H-1B visa quota crisis while imposing on employers higher filing fees and yet more strictions on how they can recruit and employ H-1B workers. Since, in 2008, 130,000 employers filed petitions, applying for under 65,000 visas, the 115,000 quota cap proposed by S.2839 is clearly inadequate to address anticipated demand. It would also appear that the 115,000 visa quota would persist only through 2011, leaving open the possibility that the quota could again be reduced. Finally, the proposed substantial hike in the H-1B corporation filing fee is likely to make it even more difficult for midsized businesses to participate in the H-1B program. On the positive side, it would appear that the Bill does not raise filing fees for small-gage employers (employing less than 25 workers).
