Following the announcement last week by U.S. Citizenship and Immigration Services (USCIS) that this year’s H-1B cap was reached, yesterday USCIS released the actual number of filings it received, stating nearly 233,000 H-1B petitions were filed between April 1 and April 7.  The announcement did not give details about how many of the 233,000 petitions were filed under the 20,000 Master’s exemption and/or the 65,000 regular H-1B statutory cap.  USCIS also indicated that it has now completed the computer-generated random selection process, also known as the “lottery,” and will begin notifying petitioners and their representatives of H-1B petitions that were selected.  USCIS announced yesterday that it will delay the processing of H-1B premium processing requests under the cap until April 27, 2015.  Employers should start receiving receipt notices for premium processed cases that same day or shortly thereafter. The firm expects to start receiving paper receipt notices for non-premium processed cases at some point during the first couple weeks of May.  Rejected petitions are expected to start arriving in the mail throughout the month of May.

The significant demand for H-1B visas is a reflection of the current strength of the U.S. economy.  Indeed, the International Monetary Fund announced yesterday that the U.S. economy should manage growth of 3 percent or more in 2015, which will be the strongest annual growth percentage since 2005. The flip side of this growth is that the H-1B cap doesn’t reflect the demand of U.S. employers or their market needs to remain competitive and hire the best talent available. The facts speak for themselves: employers only have a 36.5 percent chance of having an H-1B petition selected under this year’s cap, compared with 49 percent  last year; cases that were filed under the 65,000 regular cap this year only have a 30.5 percent chance of being selected; and H-1B filings increased this year by 35 percent over last year’s filings.  With continued economic growth expected next year, employers will be looking for Congress to improve access to highly-skilled foreign workers by increasing the number of H-1B visas available each year, or by even doing away with the numerical cap altogether and allowing a market-driven solution to pass.

So what’s next?  The casualties under this year’s cap are going to be staggering, as illustrated by 148,000 rejected petitions USCIS will begin returning to employers and their representatives over the next several weeks.  Employers should start assessing viable immigration alternatives for affected individuals, including telling some employees that termination is the only option once their current work authorization runs out.  Greenberg Traurig’s last announcement on the H-1B cap being met outlines some of the options employers should review.  Should you want to get involved with the firm’s advocacy efforts with Congress, please reach out to your Greenberg Traurig representative.

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Photo of Ian Macdonald Ian Macdonald

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital

Ian R. Macdonald Co-Chairs the firm’s Labor & Employment Practice’s International Employment, Immigration & Workforce Strategies group. He focuses his practice on developing, assessing and managing global mobility programs for multinational companies on a range of challenges affecting the movement of people capital domestically and internationally, including secondment agreements, benefits transferability, local host country employment concerns and immigration.

Ian and his team work closely with companies to manage and modify, where needed, corporate immigration programs to maximize efficiency, service and regulatory compliance levels. He is experienced with the full range of business immigration sponsorship categories (visas and permanent residence), anti-discrimination rules to reduce or eliminate risk of employment litigation, employer sanction cases, and I-9 and E-Verify compliance. Ian assists clients with establishing risk-based performance standards (RBPS) and Department of Homeland Security protocol, providing risk assessment assistance to corporations subject to Chemical Facility Anti-Terrorism Standards (CFATS) and assisting clients with ITAR/Export Control compliance within the immigration context.

Ian has developed strategic relationships abroad that he utilizes when working with clients to ensure compliance with foreign registration requirements. He is experienced with analyzing complex global mobility opportunities on country-specific matters to facilitate the transfer of personnel. Ian is also experienced in counseling employers on immigration strategy as well as immigration consequences of mergers and acquisitions, reduction in workforces, and furloughs.

Prior to joining the firm, Ian worked for the United Nations, various non-governmental think tanks and corporate law firms in London, Washington, D.C., New York and Atlanta.