Update News on Possible Legislation Affecting H1Bs
Posted Oct 12, 1998

On Friday, July 24, 1998, the House Immigration Subcommittee's Congressman Lamar Smith's office announced an agreement pertaining to the H1B update in a compromise bill. The compromise House-Senate bill has allegedly been approved by both the House of Representatives and the U.S. Senate. The information released so far appears to give the impression that it is similar to H.R. 3736, which AILA and other pro-business groups had opposed.

For those of you who recollect, approximately 2 years ago, similar provisions pertaining to H1B dependent employers were to be passed but those Bills never passed because of strong opposition from U.S. business. The Law Office of Sheela Murthy had summarized those provisions approximately 2 years ago in its Immigration Bulletin. At this time however, if this compromise Bill provides for the increase of the H1B cap from 65,000 to 115,000, with the additional burden for employers to provide attestations, American companies may swallow it for fear of not being able to survive without the H1B cap increase.

The Bill when signed into law will require companies who are persistent and heavy users of foreign temporary workers to attest that they have recruited American workers and that they have not laid off an American worker to hire a foreign worker. These H1B dependent companies also will have to attest that they do not provide temporary workers to other companies who use foreign workers to replace laid off workers. Those who do could be fined and face debarment from using the H1B program for one year.

In the most recent list provided by the Immigration and Naturalization Service (INS) to Congress, of the top 25 users of H1B program, at least six have been identified with at least 15 percent of their employees being temporary foreign workers.

The Bill, which though it has not yet been signed by President Clinton, is very likely to be signed because it presumably has safeguards for U.S. workers and will help American businesses who are encountering acute worker shortages in the high tech field. The Law Office of Sheela Murthy will provide any significant updates either as a News Flash or as an Update at our website at www.murthy.com.