Recent data released by U.S. Citizenship and Immigration Services (USCIS) reveals that denial rates on L-1B nonimmigrant visas remain high.  The L-1B visa is an intracompany transferee visa for individuals with “specialized knowledge.”  More specifically the visa requires “special knowledge possessed by an individual of the petitioning organization’s product, service, research, equipment, techniques, management, or other interests and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures.”  The recent years have marked a notable increase in Requests for Evidence and ultimate petition denials.  USCIS statistics show that in the first Quarter of the 2015 fiscal year, the agency processed 3,278 applications.  Of the applications processed, 1,020 (or 31%) were denied.  The L-1B visa category is further troubled by the large number of Requests for Evidence that are issued prior to final approval or denial.  In a March blog post on the L-1B draft policy memo, we discussed the increased scrutiny of L-1B visas.  These recent statistics further prove that the L-1B continues to be a challenging visa category.

 

The highly anticipated draft Policy Memorandum (L-1B Memo) addressing the qualifying criteria for the L-1B visa category was released by U.S. Citizenship and Immigration Services (USCIS) on March 24, 2015. The L-1B Memo attempts to give immigration practitioners and employers clear guidance on the definition of “specialized knowledge” and the standard of review USCIS adjudicators should apply when evaluating L-1B petitions. The feedback period for the L-1B Memo will end on May 8, 2015 and it will become effective on August 31, 2015.  Employers should be prepared to address the qualifying criteria outlined in the L-1B Memo, which clarifies and expands on previous agency guidance regarding L-1B visa adjudication.

Background Continue Reading Was it Worth the Wait? USCIS Releases Guidance on L-1B Visa Category

Earlier in 2024, the Department of Homeland Security introduced a regulation to reform the H-1B lottery process, shifting from an employer-centric to a beneficiary-centric selection. While this change may improve overall selection rates, high demand for H-1B visas is projected to continue to exceed the available annual 65,000 numeric limit (cap). Employers should therefore be prepared to discuss alternative options for employees who are not selected in this year’s H-1B registration process.

I. H-1B Cap Exemption

To obtain H-1B visa status for an employee, an employer’s H-1B registration must either “win” the H-1B lottery or the employer must qualify for an exemption to the H-1B cap to avoid the lottery. Certain employers are considered exempt from the H-1B cap, including institutions of higher education, non-profit entities related to or affiliated with such educational institutions, and certain non-profit or government research organizations.

An employer subject to the cap may be able to file a cap-exempt H-1B petition if the prospective employee concurrently holds a position with a cap-exempt employer. The cap exemption initially attaches to the H-1B petition filed with the cap-exempt employer, followed by the submission of an H-1B petition by a cap-subject employer that would then be cap-exempt through the noncitizen’s employment by the cap-exempt entity. Regulations limit the validity of the “concurrent” cap-subject petition to the end date indicated on the approved cap-exempt petition and provide for potential revocation of the cap-exempt petition if the employee’s cap-exempt employment ceases before the end date on the concurrent cap-subject petition. There is no minimum weekly number of hours the individual must be employed by the cap-exempt employer in order to qualify for cap exemption based on concurrent employment with that employer; however, the use of “concurrent” employment works best when the intended length of the cap-exempt and cap-subject employment are expected to be about the same.

However, concurrent employment requires careful timing and cooperation between the two employers because cap-exempt employment must continue for the cap-subject employer’s H-1B petition to remain valid.

II. Going Back to School or Receiving More Training

Certain employees whose H-1B registration was not selected in the lottery may opt to continue their academic program or return to school. F-1 student status can provide sufficient U.S. work authorization until the following year’s H-1B lottery, when the employee may have an additional chance for selection.

Optional practical training (OPT) allows students up to one year of post-graduate practical training through employment related to their field of study. Students with a degree in certain STEM fields may be eligible to obtain a two-year STEM OPT extension of work authorization, for a maximum of up to three years of post-graduate work authorization. This employment authorization offers employers a chance to plan a permanent solution or explore other options to retain the employee in the United States. If the employee has exhausted any available OPT or STEM OPT-based work authorization, they may be able to enroll in a new academic program that permits practical training. Curricular Practical Training (CPT) is training related directly to the student’s major area of study and provides work authorization as authorized by the school. However, certain CPT programs may carry significant risks related to maintaining valid immigration status, so the employee should assess this option carefully.

An H-3 trainee visa may be an option for employers with formal structured training programs. Key H-3 requirements include that the training is not available in the person’s home country and the training benefits the H-3 trainee’s career outside of the United States, the H-3 position is not in the normal operation of the business, and the H-3 trainee will not engage in productive employment unless incidental and necessary to the training.

A J-1 trainee visa could be an option if a prospective hire has a degree or professional certificate from a foreign university and has at least one year of prior related work experience, or five years of work experience abroad in their field. Trainees must participate in a structured and guided work-based training program in the field with limited productive employment. However, a J-1 visa may make the visa holder subject to a two-year home residence requirement so it is critical to determine at the outset if this requirement will apply.

III. Country-Specific Visa Options

The United States has created other special work visas for certain foreign nationals through specific trade treaties with individual countries.

The E-3 classification is limited to Australian nationals and while its criteria are similar to those of an H-1B visa, notable distinctions include dual intent, validity period, and application procedures. Present regulations restrict the annual issuance of E-3 visas to 10,500 qualifying foreign workers. The H-1B1 classification closely mirrors the H-1B and E-3 classifications, but it is limited to workers from Chile and Singapore. Compared to an H-1B, it differs significantly in terms of dual intent, validity period, and application procedures. Present regulations cap the annual issuance of H-1B1 visas at 6,800, with 1,400 allocated for Chile and 5,400 for Singapore. The TN nonimmigrant classification allows qualified Canadian and Mexican citizens to temporarily enter the United States for professional business activities. The list of eligible TN visa professions includes accountants, engineers, lawyers, pharmacists, scientists, teachers, and others.

E-1 Treaty Trader and E-2 Treaty Investor visas permit individuals from countries that have specific treaties with the United States to conduct business or invest in a commercial enterprise in the United States. If the employer entity’s ownership shares the same nationality as the employee and their country has a qualifying treaty, an E-1 or E-2 visa may be an option. If an employer is already qualified as a treaty trader or investor, the process primarily involves demonstrating that the offered position requires essential skills or is supervisory/managerial and ensuring the prospective E-1 or E-2 visa holder holds the necessary qualifications. If the employer has not previously qualified, it will also need to demonstrate substantial investment (E-2) or trade principally between the United States and the home country (E-1).

IV. L-1 Intracompany Transferee

An L-1 visa allows companies with an international presence to transfer managers, executives, and specialized knowledge workers from a foreign branch or affiliate to the United States, if the transferring employee worked for the related entity abroad for at least one year in the last three years. If a qualifying corporate relationship exists between the U.S. and foreign companies, among other factors, the company is then also required to demonstrate the specialized knowledge, managerial, or executive positions of the transferring employee both in and outside the United States.

Multinational companies may have the option to develop and implement international rotation programs, allowing talent intended for U.S. roles to gain experience with the company abroad before returning stateside. Hiring a foreign national to work for an affiliated company abroad if they are not selected in the H-1B registration would allow them to build up time toward becoming eligible to return to the United States to work in L-1 status. However, transferring an employee to work for the company abroad triggers additional considerations for the employer to address such as issues related to obtaining foreign residency and work authorization.

V. O-1 Extraordinary Ability Visa

Individuals demonstrating extraordinary ability in business, science, education, art, or athletics may qualify for an O-1A visa. To meet this standard, they must be among the top echelon in their respective fields, demonstrating exceptional achievements. This requires evidence of notable accomplishments such as publications, awards, high salaries, or critical roles in prestigious organizations. In fields such as motion pictures and television (O-1B), a “high level of achievement” is required, demonstrating a degree of skill and recognition significantly above the norm. O-1B could be an option for employees with a background as a graphic designer, video game designer, fashion designer, creative director, or visual effects artist, among others.

In O-1A/B petitions, the individual’s accomplishments must be “recognized in the field through extensive documentation” and hence applying for an O-1 visa is often a long and evidence-intensive process. For students, particularly those pursuing a Ph.D. in the sciences, an O-1 visa can be a viable option if they have a record of original research, publications, awards, and presentations.

VI. Spousal Work Authorization and Other Family-Based Options

In some cases, a foreign national employee may be eligible for U.S. work authorization through their spouse. Derivative spouse status as an L-2S, E-1S, E-2S, J-2, or, in some cases, H-4 could provide employment authorization. E-1S, E-2S, and L-2S status provide work authorization incident to status, while J-2 and eligible H-4 spouses must apply for an EAD before they may start working. If an EAD is required, employers should consider processing times as they can be lengthy.

VII. Immediate Permanent (Green Card) Sponsorship Options

Foreign nationals meeting the criteria for a green card based on EB-1-1 Extraordinary Ability, EB-1-2 Outstanding Professor or Researcher, EB-2 National Interest Waiver, or EB-2 Schedule A I-140 classification, with an available immigrant visa number, may consider filing an I-485 Application to Adjust Status with a concurrent application for employment authorization along with the employer’s immigrant petition. However, most H-1B cap-subject individuals are recent graduates or early in their careers and may not yet meet the eligibility criteria for these classifications. A green card through PERM Labor Certification was previously a feasible alternative to the H-1B cap especially for students eligible for three years of OPT and STEM OPT-based post graduate work authorization, but timing has become challenging due to lengthy Department of Labor processing times and potential visa number shortages.

VIII. A Creative Option: Look Nearshore

If there is no other viable option, the U.S. company could consider partnering with a Canadian firm to retain talent nearshore. Essentially, after the employee’s U.S. work authorization ends, the Canadian company would hire the employee and contract them back to the U.S. company, allowing the employee to work from Canada on a long-term basis.

As U.S. employers prepare to submit their H-1B registrations for USCIS’s FY 2025 H-1B lottery, selection will be by no means guaranteed and contingency planning will continue to remain key to retain foreign talent.

  1. USCIS Filing Fee Increase and Premium Processing Expansion – In 2023, USCIS issued a proposed rule to increase the required filing fees for many applications. The proposed increases for employment-based immigration benefits are significant, and if the final rule takes effect, employers will incur increased expenses to file common case types such as H-1B registrations, H-1B/ L-1/ E/ TN petitions, I-140 petitions, and I-485 applications. (The final rule on USCIS’s fee schedule is expected in April 2024).

    Although a specific timeline has not yet been provided, USCIS is expected to announce further expansion of its premium processing service in 2024. USCIS continued expanding premium processing service in 2023 to include Form I-140 EB-1C multinational executive and manager classification and EB-2 National Interest Waiver classification, certain F-1 students seeking optional Practical Training (OPT) andscience, technology, engineering, and mathematics (STEM) OPT extensions, and certain applicants requesting a change of status on Form I-539 to F, M, or J status.
  2. Ongoing Focus on Immigration Compliance – In 2023, significant immigration compliance-related changes took effect. Related to Form I-9, changes included the sunset of the Department of Homeland Security’s temporary COVID-related Form I-9 flexibilities, the new mandatory Form I-9 08/01/2023 edition, and, for qualifying E-Verify employers, an alternative remote I-9 document inspection procedure.

    In an evolving landscape, more and more states mandated enrollment in E-Verify in 2023, which is operated by USCIS and largely remains a voluntary program. Similarly, in 2023, an increasing number of states have passed laws on pay transparency which can impact the U.S. Department of Labor’s PERM labor certification process. Throughout 2024, the changes introduced in 2023 and ongoing interplay between state and federal requirements will create a challenging immigration enforcement environment and will place employers at risk for non-compliance.

    The Department of Homeland Security and Department of Labor are expected to continue their focus on immigration compliance and, similarly, in 2024 the U.S. Department of Justice’s Immigrant and Employee Rights Section (IER) may continue its enforcements, settlements, and lawsuits related to immigration-related discrimination. The post-pandemic workforce has reshaped traditional employment paradigms, making it crucial for businesses to reassess internal immigration and compliance policies, conduct regular audits to make corrections and train designated personnel, maintain required records such as public access files, and define a protocol for an unannounced government audit or site visit. In 2024, employers should remain informed about evolving immigration laws and policy changes to ensure compliance with immigration regulations.
  3. Department of Labor (DOL) Processing and Regulatory Agenda – On June 1, 2023, the Department of Labor (DOL) transitioned to a new online Permanent Labor Certification Program (PERM) application filing system and a new PERM Application Form ETA 9089.

    The DOL indicated it would not begin processing PERM applications filed through the new system until it finalized processing of cases pending in the legacy PERM portal. In 2024, the DOL will begin processing PERMs filed on the new form through the new system, which may result in an increased rate of PERM audits. As a result of the 2024 DOL transition, PERM processing times are not expected to decrease.

    The DOL’s regulatory agenda in 2024 includes a proposed rule to establish a new wage methodology to set prevailing wage rates for the H-1B, H-1B1, E-3, and PERM programs. A final prevailing wage rule had been scheduled to take effect in 2022 but was then vacated in court, and publication of the new proposed rule, first scheduled for late 2023, is now expected in June 2024.
  4. Updates Related to the H-1B Visa Program: Modernization and Domestic Visa Renewals – The Department of Homeland Security (DHS) continues to pursue a proposed rule to modernize the H-1B program. The regulation was published in the Federal Register in late October of 2023 and is followed by a 60-day public comment period. Under the rulemaking process, USCIS then considers public comments and finalizes the rule’s provisions through one or more final rules. The rule will not take effect until it advances through review, which usually takes several months. DHS indicated that it is considering separating out certain provisions, such as proposed changes to the H-1B registration, so some provisions may be finalized sooner in an effort to implement them for the upcoming FY2025 H-1B cap season beginning in the Spring of 2024.

    In early 2023, the U.S. Department of State (DOS) announced its plans to test a program that would permit visa holders to renew their visa stamps from within the United States. On December 21, 2023, the DOS published a Federal Register notice announcing that the stateside visa renewal pilot will begin on January 29, 2024, and end on April 1, 2024.
  5. Proposed 2024 Regulatory Agenda Related to Nonimmigrant Workers and Green Card (Adjustment of Status and Immigrant Visas) Process Changes – The Department of Homeland Security’s 2024 regulatory agenda reflects plans to publish a proposal in the Fall of 2024 to amend its regulations related to certain nonimmigrant workers. Proposed changes include updates to employment authorization rules for dependent spouses, increasing flexibilities for nonimmigrant workers including for those who resign or are terminated from employment, and additional updates related to modernizing Employment Authorization Documents.

    The Department of Homeland Security plans to publish a proposed rule in March 2024 to make changes to the process for adjustment of status to permanent residence. The proposed rule is anticipated to address the transfer of the underlying basis of an application to adjust status, reduce processing times and the potential for visa retrogression, and promote the efficient use of immediately available immigrant visas.

    The U.S. Department of State’s regulatory agenda for 2023 included a final rule that would permit a waiver of the general requirement for immigrant visa applicants to appear before a consular officer to be interviewed and to execute their application in person at a U.S. Consulate abroad. Details of the rule were expected in late 2023.

    GT will continue to monitor the regulatory agenda and related developments and will publish updates on https://www.gtlaw-insidebusinessimmigration.com/ as regulations move through the rulemaking process.

About the Authors:

Courtney B. Noce is Co-Chair of Greenberg Traurig, LLP’s Immigration and Compliance Practice. Noce represents both large multinational companies and small start-ups on the full range of employment-based immigration, ranging from permanent residence (PERM, National Interest Waivers, Extraordinary Ability/Outstanding Researcher, Multi-National Managers, among others) to nonimmigrant visa categories (H-1B, H-3, J-1, L-1A/B, O-1, TN).

Kate Kalmykov is Co-Chair of Greenberg Traurig, LLP’s Immigration and Compliance Practice. Kalmykov focuses her practice on business immigration and compliance. She works with employers of all sizes across a variety of industries in understanding and complying with the immigration laws relating to the hiring and retention of foreign talent. Specifically, her practice focuses on supporting clients and advising them on temporary and permanent residency immigration options for multi-national executive, business, scientific, and information technology personnel.

Miriam C. Thompson is an associate of Greenberg Traurig, LLP’s Immigration and Compliance Practice. Thompson focuses her practice on business immigration and immigration-related compliance issues, assisting employers with hiring and retaining foreign nationals in various industries and business sectors, including manufacturing, engineering, technology, medical, logistics, and academia. She has experience advising employers on all aspects of business immigration, including nonimmigrant visa categories (B, E, F-1, H-1B, J-1, L-1 A/B, O-1, TN), managing a multinational workforce, and permanent residence.

Amid the evolving global economy throughout the past year, employers may be reassessing their approach to talent acquisition and retention. Companies are navigating uncertainty by recalibrating mobility programs, aiming to not only attract but also retain talent to fulfill a skills gap in the U.S. workforce. Central to leveraging foreign talent is the power of immigration branding and messaging. A strategic emphasis on employee longevity proactively curtails workforce attrition and preempts potential labor shortages in the future.

Attracting talent

Understanding and leveraging avenues offered by U.S. immigration laws can be pivotal in securing the right skills and meeting business demands to drive success. Employers commonly leverage F-1 student OPT/STEM OPT training and the H-1B and L-1 work visa programs to source foreign workers in the talent ecosystem.

Foreign students with work authorization pursuant to OPT/STEM OPT are prime candidates for expanding a company’s talent pool with long-term development potential. Employers may attract foreign students through internships while the student completes their academic program, post-graduation employment pursuant to OPT/STEM OPT, and subsequent work visa and green card sponsorship. For most foreign students, switching from a student visa to a work permit is often challenging due to the restrictions and limited availability of H-1B visas. However, companies with an overseas presence may be able to set up strategically located hubs abroad to recruit and employ foreign nationals who were not able to obtain an H-1B visa, and then transfer them back to the United States with L-1 intracompany transfer visas following their employment abroad over at least one year. A company’s corporate immigration policy outlining support of various immigration pathways, and benchmarked against the policy of industry peers, is a competitive tool to meet foreign workers’ needs and attract high-potential talent.

Retaining talent

In response to the need for talent retention, employers are strategically tapping into their existing talent pool to bolster operational efficiency. With post-COVID-19 employees seeking greater fulfillment, employers may want to consider proactively refining their retention efforts to include top-tier foreign talent.

Companies are increasingly turning to their internal talent reservoirs to bridge skill gaps and curtail additional hiring costs. Retaining current talent is becoming pivotal for success, mobility, and business continuity. To address the evolving landscape of talent retention and the demand from foreign talent for immigration support, employers may consider several key strategies. 

Various immigration pathways offer avenues for continued employment, providing stability to existing talent. For example, some companies leverage sponsorship for work visa programs and employment-based green cards to retain skilled foreign workers. Payment of legal fees and the provision of immigration counsel are initial steps in this effort, and other offerings including immigration seminars for employees and family members, an internal immigration portal with FAQs and self-service features that provide status reports, and access to documents and opportunities for interaction with the immigration team are also important. Employers leverage streamlined extension processes for work authorization to ensure continuity for employees and the business without disruptions. Embracing technological advancements in immigration processes may streamline procedures, reduce processing times, and minimize errors. Further, a robust green card sponsorship program signals a long-term commitment to retain valuable talent and grants employees a sense of security and stability in their professional journey within the company. Clearly defined benchmarks when the company initiates green card sponsorship are not only a recruitment and retention tool but also ensure that foreign workers do not lose immigration status or work authorization. 

Adaptability and foresight also benefit companies navigating corporate immigration policy frameworks. Companies can implement consistent yet flexible approaches to immigration sponsorship that cater to both business needs and the foreign worker’s circumstances. For example, timing adjustments in initiating green card sponsorship may prevent work authorization gaps. Evaluating risks versus benefits might lead to early green card sponsorship for students to safeguard their status and work authorization if they are not selected in the H-1B lottery. Exploring alternative sponsorship options, such as supporting family-based or self-sponsored petitions, could be viable alternatives for a company to retain critical talent and may streamline the process and save time. Finally, recognizing and addressing the needs of dependents, such as spouses and children, within the immigration sponsorship process may be determinative to retain valuable talent.

Developing talent

Companies recognize the importance of not just attracting and retaining foreign talent but also developing their skills and potential. With strategic planning, immigration strategies can help advance the capabilities of international talent within a corporate setting.

Demand for H-1B visas has increased while the number of available visas has remained static. In response, employers are assisting international talent to develop their credentials to become eligible for an O-1 visa as an alternative. The O-1 visa for individuals with extraordinary abilities allows companies to support foreign workers in advancing their careers by recognizing their exceptional talent and contributions. Although the standard to qualify is high, for many foreign workers there are specific steps they can take to proactively bolster their resume toward becoming “O-1 visa ready.”

Sponsorship of certain visa categories, such as EB-1A for individuals with extraordinary ability or a National Interest Waiver to bypass the requirement to test the labor market, may encourage innovation and leadership among an employer’s foreign workers. Elevating a green card process to a higher preference category generally accelerates the process and the prospect of a higher preference category may lead foreign nationals to excel in their fields, drive innovation, and propel critical progress for the company.

Multinational employers are increasingly implementing international rotational programs and cross-border exchanges to foster skill development and broaden experiences. This approach not only addresses internal labor shortages but also mitigates the need for expensive talent searches and replacements. These programs offer benefits akin to longer-term assignments, facilitating knowledge transfer and nurturing company culture at a reduced cost. Such exposure can empower foreign workers with diverse market insights, enriching their skill sets and fostering a global perspective. Moreover, it allows businesses to harness internal expertise to bolster critical initiatives. However, the rise in popularity of these short-term rotation and remote work programs may invite heightened compliance measures, including increased audits and inspections. Hence, employers should anticipate a trend towards more rigorous immigration requirements aligning with labor, tax, and social security laws.

On Jan. 4, 2023, U.S. Citizenship and Immigration Services (USCIS) issued a proposed rule that would increase immigration fees. USCIS calls these “modest” increases, but the proposed fee increases are substantial, including a 70% increase for H-1B petitions (from $460 to $780); a 201% increase for L-1 petitions (from $460 to $1,325); and a 201% increase for E and TN petitions (from $460 to $1,015). If approved, the rule also would increase fees for adjustment applicants, eliminate the “no fee” for EAD and advance parole applications, and eliminate the I-485 “discount” for children, among other changes that would impact the business community and individual immigration applicants. USCIS has not increased fees since 2016. The proposed rule and FAQs published on the USCIS website state that the increased costs are needed to increase efficiency, among other things. Due to increased pressure and pushback against the increases, the fee hike was put on hold until 2024. The proposed rule is now back under the review of The Office of Information and Regulatory Affairs and is likely to be finalized within the next 90 days. The fees would go into effect 60 days after the rule is approved.

This post provides the latest update with respect to consular section operations in Israel. After closures caused by the Oct. 7, 2023, attacks on Israel and subsequent security concerns, the U.S. consular posts in Israel have resumed essential U.S. citizen services and limited nonimmigrant visa services. 

The U.S. Citizen Services Unit has established daily walk-in times for U.S. citizens with immediate travel plans to obtain emergency passports. This includes emergency U.S. passport applications for first-time applicants. Furthermore, appointments can be made for all other purposes, including non-emergency travel. Appointments for renewal of lost or expired passports, Consular Reports of Birth Abroad, and notarial services are made available for the following week every Wednesday at 3 p.m. local time. Additionally, the U.S. Embassy in Jerusalem has warned that escalated levels of violence and danger in the West Bank may make it difficult for U.S. citizens to access the U.S. Embassy in Jerusalem and Consular Branch in Tel Aviv, so U.S. Services will be providing regular outreach to the West Bank for affected individuals.

Additionally, limited visa services have resumed and visa appointments can be scheduled for nonimmigrant work visas such as E-1, E-2, L-1, and H-1B; dependent visas; and student visas, such as F-1 and M-1. B visitor visa appointments and immigrant visa services continue to be unavailable. Importantly, Israeli citizens are eligible for visa-free visitor entries to the United States through the Electronic System for Travel Authorization (ESTA) for up to 90 days, subject to ESTA enrollment and approval.

Additionally, limited visa services have resumed and visa appointments can be scheduled for nonimmigrant work visas such as E-1, E-2, L-1, and H-1B; dependent visas; and student visas, such as F-1 and M-1. B visitor visa appointments and immigrant visa services continue to be unavailable. Importantly, Israeli citizens are eligible for visa-free visitor entries to the United States through the Electronic System for Travel Authorization (ESTA) for up to 90 days, subject to ESTA enrollment and approval.

Leer en Ingles/Read in English.

La pandemia sigue impactando las economías de Latinoamérica, debido a la interrupción de la cadena de suministro global y la reducción en el comercio y el turismo. Esta situación económica de incertidumbre ha incrementado la inestabilidad social, que incluye cambios políticos y cuestiones generales de gobernabilidad en países como Venezuela, Chile, Perú y Argentina.

En este contexto, algunos inversionistas y compañías latinoamericanas han mostrado un aumento en su interés por invertir en los Estados Unidos, atraídos por su proximidad geográfica, el acceso a una amplia base de consumidores, una economía históricamente estable y por su sistema legal. En GT, hemos observado un fuerte aumento en el número de consultas por parte de inversionistas latinoamericanos que buscan establecer negocios como vehículo para la migración.

Al momento de proporcionar asesoría de planificación previa a la inmigración, también es importante considerar las implicaciones fiscales en los ingresos de los inversionistas en el extranjero, así como en sus cuentas, activos, inversiones, etc., dado que Estados Unidos cobra impuestos a las personas en función de sus ingresos a nivel mundial. Esta entrada de blog revisa las opciones más comunes de visa para inversionistas y compañías procedentes de Latinoamérica, y proporciona previsiones fiscales a tener en cuenta al establecerse en los Estados Unidos.

Opciones comunes de visa

Las visas E-2 y L-1 tienden a ser las opciones más populares, pero comprender qué opción funciona mejor para el conjunto de circunstancias particulares del inversionista o de la compañía es un paso fundamental en la planificación de la inmigración. Los dos tipos de visa proporcionan una vía de autorización para trabajar; sin embargo, es importante tener en cuenta que tienen diferentes criterios de elegibilidad y requisitos.

La visa E-2 permite principalmente a los inversionistas y empleados de un negocio calificado desarrollar y dirigir su inversión en los Estados Unidos. Esta visa está diseñada para personas o compañías de países que tienen un tratado de comercio y navegación con los Estados Unidos, que incluye a Chile, Colombia, México y Argentina, entre otros países de Latinoamérica.

Por otra parte, el principal objetivo de la visa L-1 es permitir a las compañías multinacionales transferir empleados de sus oficinas en el extranjero a una oficina en Estados Unidos. La visa L-1 no depende de un tratado de comercio y navegación, y como tal, está disponible para compañías de todos los países. El trámite de la L-1 facilita los traslados intraempresariales de directivos, ejecutivos y empleados con conocimientos especializados.

En la tabla que figura a continuación se comparan de un vistazo los principales elementos de las visas E-2 y L-1:

Quien calificaTrámiteVigenciaCamino hacia la tarjeta de residencia (green card)
E-2Elegibilidad del país:
· La compañía establecida en los Estados Unidos debe tener la nacionalidad de un país con tratado; es decir, la compañía debe tener participación mayoritaria de personas con nacionalidad de un país con tratado.
· El inversionista o empleado debe tener la misma nacionalidad que el país con tratado.
Inversión:
· La persona o compañía debe tener una inversión sustancial en una compañía de Estados Unidos.
· No se requiere un monto mínimo de inversión, pero la suma debe ser proporcional a la naturaleza del negocio y al costo total de su establecimiento.
Puestos en los que aplica:
· Aplica para inversionistas principales o empleados de la compañía que ocupen puestos ejecutivos /gerenciales o de habilidades esenciales.
La visa se tramita directamente en el consulado.La visa puede otorgarse por un periodo inicial de hasta cinco años, y un número indefinido de prórrogas posteriores en incrementos de dos años está disponible durante la vigencia del sello de la visa, siempre y cuando la compañía de Estados Unidos continúe calificando para el estatus del tratado.No proporciona un camino directo hacia la residencia permanente (green card). Sin embargo, algunos titulares de visa E-2 pueden beneficiarse de otras opciones de inmigración para la residencia permanente.
L-1Relación calificada:
· La compañía extranjera debe tener una relación calificada (matriz, subsidiaria, afiliada, etc.) con una compañía de los Estados Unidos.
Elegibilidad del país:
· No depende de un tratado de comercio y navegación con los Estados Unidos.
· Disponible para compañías de todos los países.
· Proporciona una vía de inmigración a las personas con nacionalidad de países latinoamericanos que no forman parte de un tratado E-2. Puestos en los que aplica:
· Los empleados transferidos deben ocupar un puesto gerencial, ejecutivo o con conocimientos especializados.
· Los empleados transferidos deben haber trabajado para la compañía extranjera durante un año dentro de los últimos tres años anteriores al envío de la petición, en calidad de gerentes, ejecutivos o personas con conocimientos especializados.
La petición se presenta primero ante USCIS. Una vez aprobada, el beneficiario puede tramitar la visa en un consulado en el extranjero. Excepto: Cuando la compañía cuenta con visa L colectiva (blanket), ésta se presenta de forma directa en el consulado de los Estados Unidos en el extranjero.· El estatus se aprueba inicialmente por tres años.
· Los gerentes /ejecutivos (L-1A) pueden obtener dos prórrogas posteriores de dos años para una estancia total de siete años.
· Los empleados con “conocimientos especializados” (L-1B) pueden obtener una prórroga de dos años para una estancia total de cinco años.
Proporciona un camino hacia la green card para ejecutivos y gerentes multinacionales (categoría de elegibilidad EB-1C).

Consideraciones fiscales

La solicitud y/u obtención de cualquiera de las visas de no inmigrante explicadas anteriormente no convierte, por sí misma, al titular en residente fiscal de los Estados Unidos, por el mero hecho de tener cualquiera de esas visas. Existen dos definiciones clave que determinarán cuándo una persona es considerada residente a efectos del impuesto sobre la renta de los Estados Unidos y a efectos del impuesto sobre transmisiones patrimoniales de los Estados Unidos. Estas definiciones no son las mismas.

Por lo general, una persona que no sea ciudadana de EE. UU. se considera residente fiscal de los Estados Unidos sobre la renta a efectos del impuesto sobre la renta de EE. UU. si cumple lo siguiente: (A) la prueba de residencia permanente legal (es decir, si tiene una green card) (la “prueba de la green card”); o (B) la “prueba de presencia sustancial”. La prueba de presencia sustancial se cumple si una persona está presente en los Estados Unidos durante 183 días o más durante el año calendario en curso. La prueba de presencia sustancial también se cumple si una persona está presente en los Estados Unidos durante (i) al menos 31 días durante el año en curso, y (ii) al menos 183 días durante el periodo de tres años que finaliza el último día del año en curso, utilizando una fórmula de promedio ponderado. Existen varias excepciones a la prueba de presencia sustancial que quedan fuera del alcance de este artículo.

A efectos del impuesto federal de los Estados Unidos sobre transmisiones patrimoniales (es decir, el impuesto sobre sucesiones, donaciones y saltos generacionales), una persona que no sea ciudadana de EE. UU. será residente de EE. UU. sí es una persona domiciliada en EE. UU. Se considera que es una persona domiciliada en EE. UU. sí ha vivido en Estados Unidos, aunque sea durante un breve periodo de tiempo, y no tiene en la actualidad la intención definitiva de abandonar el país. Si bien la prueba de domicilio es esencialmente una cuestión de intención subjetiva de la persona, puede inferirse de las acciones y circunstancias objetivas de ésta última. Para determinar si una persona ha establecido su domicilio en los Estados Unidos, los tribunales suelen tener en cuenta hechos y circunstancias como: (i) la cantidad de tiempo que la persona ha pasado en los Estados Unidos; (ii) la ubicación de su domicilio principal y la naturaleza de su alojamiento en los Estados Unidos; (iii) la residencia de su familia y amigos; (iv) la ubicación de sus efectos personales, automóviles y otros bienes muebles tangibles; (v) la ubicación de las afiliaciones religiosas y clubes de la persona; (vi) la ubicación de su domicilio de negocios; (vii) la ubicación de las cuentas bancarias de la persona; (viii) la ubicación de su registro electoral; y (ix) la ubicación de su licencia de conducir.

Consecuencias para el impuesto federal sobre la renta de EE. UU. si la persona se convierte en residente fiscal de EE. UU.

Existen varias pasos de planificación previa que pueden adoptarse antes de la inmigración de la persona. En vista de ello, cualquier persona que esté considerando la posibilidad de inmigrar a Estados Unidos debe buscar asesoría fiscal personalizada previa a la inmigración para determinar los efectos del posible cambio de residencia fiscal a Estados Unidos y las opciones para mitigar los efectos de dicho cambio.

A continuación se presentan las principales consecuencias del impuesto federal sobre la renta:

  • La persona estará sujeta al impuesto federal sobre la renta de EE. UU. por sus ingresos a nivel mundial.
  • La persona puede acreditar los impuestos sobre la renta no estadounidenses aplicados a sus ingresos de origen no estadounidense (si los hay) de la obligación de impuesto federal sobre la renta de EE. UU. de dicha persona. Esto está sujeto a múltiples condiciones y restricciones.
  • El impuesto federal sobre la renta de EE. UU. se aplica a los “ingresos ordinarios” (básicamente, todos los ingresos excepto el tipo de ingresos que se describe en el párrafo siguiente) a tasas escalonadas de hasta el 37%.
  • El impuesto federal sobre la renta de EE. UU. se aplica a los “ingresos por ganancias de capital a largo plazo” y a los “ingresos por dividendos calificados” a tasas de hasta el 20%. Los ingresos por ganancias de capital a largo plazo incluyen las ganancias derivadas de la venta o intercambio de un activo de capital (por lo general, un activo que se mantiene para inversión) que se ha mantenido durante más de 12 meses, y los ingresos por dividendos calificados incluyen los dividendos de corporaciones estadounidenses y de determinadas “corporaciones extranjeras calificadas“, como las corporaciones extranjeras que cotizan en la bolsa de Estados Unidos o que califican para beneficios bajo un tratado de impuesto sobre la renta entre el país de residencia de la corporación y los Estados Unidos, si se cumplen determinadas condiciones. Tenga en cuenta que Estados Unidos no tiene tratados de impuesto sobre la renta con la mayoría de los países de Latinoamérica, con excepción de Venezuela y México (Chile tiene un tratado pendiente de ratificación, por lo que actualmente no se encuentra en vigor).
  • Las personas estadounidenses están sujetas a un impuesto adicional de Medicare del 3.8% sobre los ingresos “pasivos” que superen determinados umbrales mínimos de ingresos, como intereses, dividendos, anualidades, regalías, alquileres y ganancias de capital.
  • Según el Estado de residencia, la persona puede estar sujeta a impuestos estatales sobre la renta, además de las tasas federales mencionadas anteriormente. Algunas de las tasas estatales pueden ser significativas.
  • La base de los activos de la persona no se incrementará automáticamente al valor justo de mercado cuando la persona se convierta en residente fiscal de los Estados Unidos sobre la renta. Existen determinadas transacciones que permitirían a la persona obtener un ajuste en el valor de base.
  • Existen regímenes de anti-diferimiento significativos que se aplican a los ciudadanos de EE. UU. y a los residentes fiscales sobre la renta que sean propietarios de acciones en corporaciones no estadounidenses que limitan y, en ciertos casos, penalizan la posibilidad de diferir impuestos de los Estados Unidos. En determinados casos, se puede requerir que la persona reconozca ingresos basados en los ingresos obtenidos por las corporaciones no estadounidenses de las que sea propietario, incluso cuando éstas no distribuyan dividendos, o que la persona pague un cargo por intereses por cualquier acumulación de ingresos que haya sido objeto de diferimiento (depende del régimen aplicable). Estos regímenes son complejos, y ésta es una breve referencia para alertar a aquellos interesados en considerar su inmigración a los Estados Unidos.
  • También existen regímenes de anti-diferimiento significativos en relación con los fideicomisos extranjeros, determinados planes de pensión en el extranjero que no califican como tales a efectos del impuesto federal sobre la renta de EE. UU. y los fondos extranjeros en general.

Consecuencias para el impuesto federal sobre transmisiones patrimoniales de EE. UU. si la persona se convierte en domiciliado o ciudadano de EE. UU.

  • Los ciudadanos de EE. UU. y los domiciliados en EE. UU. están sujetos al impuesto federal sobre sucesiones de EE. UU. por el valor justo de mercado de los activos que posean en todo el mundo o se considere que posean en el momento de su fallecimiento. Conforme a la legislación vigente, el impuesto sobre sucesiones de EE. UU. se aplica a tasas de hasta el 40% del valor justo de mercado de los activos del causante. Los domiciliados y ciudadanos de EE. UU. también están sujetos al impuesto federal sobre donaciones de EE. UU. por todos los activos donados en vida en todo el mundo. El impuesto sobre donaciones se aplica a tasas escalonadas de hasta el 40%.
  • Cada ciudadano de EE. UU. y domiciliado en EE. UU. puede excluir del impuesto federal sobre donaciones de EE. UU. las donaciones a particulares de hasta $17,000 por año (indexados anualmente por la inflación). Además, a cada domiciliado en EE. UU. se le permite un crédito que puede utilizarse para eximir una determinada cantidad de bienes del impuesto sobre donaciones y sucesiones de EE. UU. Este crédito permite a un ciudadano de EE. UU. o domiciliado en EE. UU. transferir hasta aproximadamente $12.92 millones (ajustados anualmente por la inflación) de bienes en vida o en el momento del fallecimiento sin impuesto federal sobre donaciones o sucesiones de EE. UU. Tenga en cuenta que en 2026 el monto de la exención se reducirá a aproximadamente la mitad de esa cantidad.
  • A los domiciliados y ciudadanos de EE. UU. también se les permite una deducción matrimonial ilimitada del impuesto sobre sucesiones y donaciones por las donaciones y bienes que pasen al cónyuge supérstite, siempre y cuando el cónyuge beneficiario sea ciudadano de EE. UU. Si el cónyuge supérstite no es ciudadano de EE. UU., existe un mecanismo (un Fideicomiso Doméstico Calificado o “QDOT”) que permitiría diferir el pago del impuesto federal sobre sucesiones de EE. UU. hasta el momento del fallecimiento del cónyuge supérstite si se cumplen determinadas condiciones.
  • El impuesto sobre transmisiones patrimoniales con salto generacional (GST) es un impuesto adicional diseñado para garantizar que los bienes estén sujetos a impuestos cada vez que pasan de una generación a otra. En términos más sencillos, el impuesto GST se aplica cada vez que un bien pasa por donación o fallecimiento de un abuelo a un nieto o descendiente más lejano (es decir, saltándose una generación). Si, por ejemplo, un abuelo dona bienes a un nieto, el impuesto GST (además del impuesto sobre donaciones de EE. UU.) se aplicará en el momento de la donación. Si un abuelo deja una propiedad en fideicomiso para un hijo y la propiedad pasa a un nieto al fallecer el hijo, el impuesto GST se aplicará al fallecer el hijo, además de cualquier impuesto sobre donaciones o sucesiones de EE. UU. aplicable en el momento de la creación del fideicomiso.
  • Estos impuestos son onerosos; sin embargo, con una planificación adecuada antes de convertirse en ciudadano de EE. UU. o domiciliado en EE. UU., la propia vulnerabilidad puede potencialmente minimizarse de manera significativa.
  • Una persona que busque inmigrar a los Estados Unidos y que cuente con activos de valor puede reducir significativamente su vulnerabilidad al impuesto sobre sucesiones de EE. UU. al transferir activos a fideicomisos irrevocables que se hayan redactado cuidadosamente teniendo en cuenta las reglas del impuesto sobre sucesiones de EE. UU. antes de convertirse en ciudadano de EE. UU. o domiciliado en EE. UU. Con una planificación y estructuración cuidadosas, los activos contenidos en los fideicomisos irrevocables no deberían estar sujetos al impuesto federal sobre sucesiones de EE. UU. al fallecer la persona o al fallecer sus descendientes. Este tipo de planificación es muy compleja y tiene muchas consideraciones técnicas que abordar, por lo que requeriría una asesoría personalizada para evaluar su viabilidad y requisitos.
  • También existen otras opciones para planificar de manera más eficiente antes de convertirse en ciudadano de EE. UU. o domiciliado en EE. UU. que incluyen, pero no se limitan a, la donación, el uso de seguros, entre otros.

Es importante tener en cuenta que este blog proporciona una visión general de los aspectos de inmigración y las consecuencias fiscales a tener en cuenta y no se aplica a ningún caso en particular o específico. Se proporciona con fines informativos y no constituye una opinión definitiva ni una asesoría legal. Consulte con un abogado especializado en inmigración e impuestos las mejores opciones aplicables a su situación particular o a la de su compañía. Tenga en cuenta que el contenido de esta entrada de blog se basa en la legislación vigente, que puede cambiar periódicamente. No asumimos la obligación de actualizar esta entrada si, tras su publicación, se producen cambios en la legislación de inmigración o de impuestos que afecten su contenido.

Please join Greenberg Traurig shareholders Kate KalmykovBarbara Kaplan, and Marc Selden for an informative discussion on the importance of pre-residency tax planning for foreign nationals in the United States applying for permanent residency. 

The panel will address:

  • Taxation on worldwide income
    • U.S. federal income tax
    • U.S. federal estate and gift tax; generation skipping transfer tax considerations
    • State and local tax considerations
  • Examining proactive measures foreign nationals can take prior to obtaining permanent residency in the United States to minimize their tax liability
  • Post-residency tax strategies to implement if pre-residency tax planning was not performed

Who Should Attend:

  • F-1 and J-1 students, exchange students and scholars, researchers
  • Students working pursuant to OPT and STEM OPT
  • H-1B visa holders
  • L-1 visa holders
  • E-1 and E-2 visa holders
  • Mexican and Canadian TN visa holders
  • O-1 Extraordinary Ability visa holders
  • B1/B2 visitors considering moving to the United States
  • Adjustment of status applicants
  • Recent LPRs

Location:

The lunch-and-learn program will take place in-person at Greenberg Traurig’s NYC office in One Vanderbilt on Tuesday, Dec. 5 at 12 – 2:00 p.m. ET.

RSVP:

To RSVP for the Dec. 5 program, please click here.

This event is part of a series on emerging trends impacting investors and employers. To RSVP to future scheduled Lunch-and-Learn programs, please click here.

On Oct. 23, 2023, the Department of Homeland Security (DHS) announced the Notice of Proposed Rulemaking (NPRM) to amend H-1B regulations. The purpose of the NPRM is threefold: 1) to modernize and improve the efficiency of the H-1B program; 2) to provide greater benefits and flexibilities; and 3) to improve integrity measures. This proposed regulation is open for public comment until Dec. 22, 2023. Comments can be submitted through the Federal eRulemaking Portal, referencing DHS Docket No. USCIS-2023-0005. 

The proposed rule will not take effect until the comment period ends and DHS publishes a final regulation. It is not clear if new provisions will be implemented in time for the upcoming cap registration season in March 2024.

This blog post summarizes the proposal’s key points.

  1. Modernization and Efficiencies

DHS intends to streamline requirements for the H-1B program with the following proposals:

Revisions to the definition of ‘Specialty Occupation.’ U.S. Citizenship and Immigration Services (USCIS) seeks to revise the regulatory definition and standards for a “specialty occupation” by clarifying the following:

  • There must be a direct relationship between the required degree field and the duties of the position.
  • A position will not qualify as an H-1B Specialty Occupation if it solely requires a general degree without further specialization (i.e., business administration, an unspecified quantitative field, or an engineering degree in any field of engineering).
  • Multiple degree fields required will not automatically disqualify the petition, but the petitioner has the burden of proof to explain how those disparate fields of study relate to the job duties.

Amend the Criteria for Specialty Occupation Positions. USCIS seeks to revise the criteria for specialty occupations by clarifying the following in the NPRM:

  • Currently, the regulatory criteria states that a bachelor’s degree is “normally” required for the position. The proposed rulemaking seeks to clarify that “normally” does not mean “always.”
  • Historically the regulations utilized a four-prong analysis to determine whether a position qualified as a specialty occupation. The proposed rule seeks to change this to a three-prong analysis by consolidating the second prong into the fourth.
  • When a beneficiary is staffed at a third party, DHS seeks to add the phrase “or third party if the beneficiary will be staff to that third party.” This change would allow the petitioner to use the third party’s typical requirements to prove specialty occupation.

Amended Petitions. Currently, an H-1B amendment is required when there is a material change in the terms of the H-1B employment, including a change in job duties, change in the worksite location outside the geographic area of employment, change in hours, or other changes that impact the conditions outlined in the underlying approved H-1B petition. The proposed rule seeks to clarify when an amended petition must be filed if there is a change in the worksite location. It also seeks to clarify when an amended or new petition is required for short-term placement of H-1B workers. The NPRM proposes the following: 

  • Any change in worksite location that reflects a material change requires a new petition.
  • A new or amended petition must be filed before the change takes place.
  • An amended or new petition is not required when the beneficiary is going to a non-worksite location to participate in employee development.

Deference. The proposed rule seeks to codify existing deference policy where adjudicators generally should defer to a prior determination involving the same parties and underlying facts if there is no material change. Codifying the deference policy is designed to better ensure consistent adjudications.

Maintenance of Status. According to the proposed rule, evidence of maintenance of status must be included with the initial filing of petitions that request to extend or amend the beneficiary’s stay. The NPRM also clarifies:

  • Petitioners should provide evidence with the initial filing, rather than waiting for a request for evidence.
  • The changes would impact the following employment-based classifications: E-1, E-2, E-3, H-1B, H-1B1, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-2, P-3, Q-1, R-1, and TN nonimmigrants.
  • Such evidence may include paystubs, W-2 forms, quarterly wage reports, tax returns, contracts, and work orders.

Eliminating the Itinerary Requirement for H Programs. The proposed regulation seeks to eliminate the itinerary requirement for H-1B and H-2 petitions, as the information provided in an itinerary is largely duplicative of information already provided in the Labor Condition Application (LCA).

Validity Expires Before Adjudication. DHS proposes to allow H-1B petitions to be approved or have their requested validity period dates extended if USCIS adjudicates and deems the petition approvable after the initially requested validity period end-date, or the period for which eligibility has been established, has passed. This generally would occur if USCIS deemed the petition approvable upon a favorable motion to reopen, motion to reconsider, or appeal.

  1. Benefits and Flexibilities

DHS proposes to modernize the definition of employers who are exempt from the annual statutory limit on H-1B visas and provide further benefits and flexibilities in the regulations. The proposed regulation allows additional flexibility for both beneficiaries and nonprofit and government research organizations.

H-1B Cap Exemptions. The NPRM proposes the following:

  • Replace “primarily engaged” and “primary mission” with “fundamental activity.” Such change would allow flexibility for beneficiaries whose work contributes (but does not predominately further) the qualifying organization’s purpose.
  • Clarify that a qualifying employer can have more than one “fundamental activity.”
  • Change the phrase “the majority of” to “at least half” to permit beneficiaries flexibility to qualify for cap-exempt status if they spend 50% of their time performing job duties at a qualifying research organization and 50% at a cap-exempt employer.
  • Clarify that performing at least 50% of the duties at a qualifying cap-exempt employer does not mean those duties need to be performed physically onsite.
  • Eliminate the requirement that the petitioner must show a direct correlation between the beneficiary’s duties and the essential purpose, mission, objectives, or functions of the qualifying organization.
  • Amend the definition of “nonprofit or tax exempt organizations” and eliminate the requirement to provide an IRS letter demonstrating the petitioner has been approved as a tax exempt organization “for research or educational purposes.” The petition still needs to provide documentation that it meets this requirement, but it does not need to be in the form of an IRS letter.

Automatic Extension of Authorized Employment. DHS proposes to provide flexibilities and address “cap-gap” issues by extending F-1 status and related work authorization until April of the relevant fiscal year. Currently, cap-gap is provided only until Oct. 1 of the relevant fiscal year.

Start Date Flexibility for Certain H-1B Cap-Subject Petitions. DHS also proposes greater flexibility on the requested H-1B employment start date listed on the Form I-129 petition to permit start dates that are after Oct. 1. Specifically:

  • The H-1B petition must be a nonfrivolous filing.
  • The requested start date cannot be more than six months beyond the filing date of the petition.
  • If the H-1B petition with the underlying cap-gap extension is denied before April 1, the cap-gap would end, and the F-1 student would have 60 days to depart the United States or take other action to maintain their status in the country.
  1. Integrity

DHS proposes to address H-1B Cap registration “abuse” by changing the way USCIS selects registrations. Several anti-fraud safeguards would be made to the current registration system to bolster the selection process and reduce the possibility of misuse and “gaming” of the system.

H-1B Registration System. Each beneficiary would have the same chance of being selected, regardless of how many registrations are submitted on their behalf. 

  • DHS proposes to select registrations by unique beneficiary rather than by registrations. Each unique individual would be entered into the selection process once, regardless of how many registrations were submitted on their behalf.
  • Related entities would not be allowed to submit multiple registrations for the same beneficiary.
  • The NPRM seeks to codify USCIS’s authority to deny an H-1B petition, or revoke an approved H-1B petition, if the underlying registration contains a false attestation or is otherwise invalid.

Beneficiary-Centric Selection. Beneficiaries would be allowed to have more than one registration submitted on their behalf, but each beneficiary would be entered in the selection process only once. Thus, if a random selection were necessary, selection would be based on each unique beneficiary, rather than each registration.

  • Previously, registrants have been able to bypass the passport requirement by indicating that they do not have a passport. The proposed regulation would require registrants to have a valid passport at the time of registration.
  • These changes may provide beneficiaries with greater autonomy with respect to their H-1B employment.

Bar on Multiple Registrations Submitted by Related Entities. Currently, DHS does not allow related entities to file multiple petitions for the same beneficiary. The proposed change would also bar related entities from submitting multiple registrations.

Registrations with False Information or that Are Otherwise Invalid. Currently, the regulations state if the petition contains material that is not true and correct, inaccurate, fraudulent, or misrepresents a material fact, the petition is subject to grounds for denial or revocation. DHS seeks to codify those requirements and extend the same requirements to the information provided in the registration. Furthermore, if a petitioner submits more than one registration per beneficiary in the same fiscal year, the proposed regulations will consider all of the registrations to be invalid.

Alternatives Considered. DHS plans to continue using the registration system and will not revert to the old paper-based filing system. Efforts will be made to continue to enhance the registration system, and DHS welcomes public comment on this issue.

Provisions to Ensure Bona Fide Job Offer for a Specialty Occupation Position. The proposed rule would codify USCIS’s authority to request contracts, work orders, or similar evidence to establish the contractual relationship between all parties as well as state the minimum educational requirements to perform the job duties. The rule also seeks to codify the requirement that the petitioner establish that non-speculative employment exists at the time of filing the petition. The NPRM would:

  • Provide USCIS authority to ensure the LCA properly supports and corresponds with the petition.
  • Alter the definition of “United States Employer” and remove the reference to Employer-Employee relationship from the definition.
  • Codify the existing requirement that the petitioner has a bona fide job offer for the beneficiary to work within the United States and add clarification that the bona fide job offer may include “telework, remote work, or other off-site work in the United States.”
  • Add a new requirement that the petitioner has a legal presence in the United States.

Beneficiary-Owners. DHS proposes to clarify that beneficiary-owners may be eligible for H-1B status even when the beneficiary possesses a controlling interest in that petitioner.

  • Conditions would apply when the beneficiary owns more than 50% or has more than 50% of the voting rights of the petitioner. Conditions would not apply if the beneficiary does not own a controlling interest.
  • The beneficiary must perform specialty occupation duties more than 50% of the time and can also perform non-specialty occupation duties that involve owning and operating the business.
  • Validity period of such petitions would be limited to 18 months. Subsequent extensions would not be limited and could be approved for up to three years.

Site Visits. DHS proposes to codify its existing authority to conduct site visits to maintain the integrity of the H-1B system. The NPRM would:

  • Establish consequences for failure to comply with site visits, including denial or revocation of the petition.
  • Clarify that public inspections would include onsite visits, interviews with officials, review of records related to compliance or any records USCIS deems pertinent to the facts related to the petition, as well as interviews with any individual.
  • Clarify that inspections may occur at the petitioner’s headquarters, satellite locations, or any location where the beneficiary will work, including the beneficiary’s home or third-party worksites.

Third Party Placement. DHS proposes to clarify that if an H-1B worker will be placed at a third party’s organization, USCIS will consider the requirements of that third party, and not the petitioner, to determine whether the position is a specialty occupation.