Meyner and Landis LLP Immigration Law Group
  • 01Dec
    O-1 Visas, P Visas Comments Off on USCIS Publishes Guidance On The Regulatory Requirements For Agents And Sponsors Of “O” And “P” Petitions

    Donald Neufeld, Acting Associate Director, Domestic Operations of USCIS recently published guidance seeking to clarify the adjudicative standards associated with O and P petitions in the very specific instance where such petitions are filed by a petitioner acting as a U.S. agent for a beneficiary (or beneficiaries) who will be working for more than one employer within the same period. The guidance (“Neufeld Memo”) also serves to reaffirm the definition of a U.S. sponsoring organization as it applies to the P Visa Classification.

    Background

    The O visa program is available to a person who can demonstrate an extraordinary ability in the sciences, arts, education, business or athletics, or those in the motion picture and television industry. O-1 and O-2 petitions may be filed by a U.S. employer, a U.S. agent, or a foreign employer through a U.S. agent.

    The P-1 visa program is available to a person who performs as an athlete, individually or as a part of a team, that is “internationally recognized” [attained a high level of achievement], or a person who performs with (or an essential part of) an entertainment group that has been recognized internationally.

    The P-2 visa program is available to a person who performs as an artist or entertainer, individually or as a part of a group, who seeks to enter the U.S. as a part of a reciprocal exchange program between an organization in the U.S. and a foreign organization.

    The P-3 visa program is available to a person who performs as an artist, entertainer, teacher, trainer, coach, or interpreter, individually or as part of a group, in a musical, theatrical, or artistic performance or presentation which is culturally unique.

    P petitions may be filed by a U.S. employer, a U.S. agent, a U.S. sponsoring organization, or a foreign employer through a U.S. agent.

    Both the O and P regulations provide that if the O or P beneficiary (employee) plans to work concurrently for more than one employer within the same specified time period, each employer must file a separate petition with the Service Center which has jurisdiction over the area where the foreign national will perform services. See 8 CFR 214.2(o)(2)(iv)(B); 8 CFR 214.2(p)(2)(iv)(B). A way to avoid filing multiple petitions, when appropriate, is for an established agent (i.e. sports agent, fight promoter, art director) serve as the actual employer of the beneficiary.

    The Neufeld Memo’s Guidance For “O” and “P” Petitions Filed By A U.S. Agent

    A petition filed by an “established agent” is subject to certain conditions. A petition involving multiple employers may be filed by a person or company in business as an agent that acts as the representative of both the employers and the beneficiary, so long as the following evidence is supplied:

    (a) The supporting documentation includes a complete itinerary of the event or events;
    (b) The itinerary specifies the dates of each service or engagement, the names and addresses of the actual employers, and the names and addresses of the establishments, venues, or locations where the services will be performed;
    (c) The contract between the employers and the beneficiary is submitted; and
    (d) The agent explains the terms and conditions of the employment and provides any required documentation.
     
    See 8 CFR 214.2(o)(2)(iv)(E)(2) and (p)(2)(iv)(E)(2).

    In addition to the foregoing evidence, for an agent to be considered the actual employer of the beneficiary, the agent must also demonstrate that he/she is “in business as an agent.” While the regulations do not specify the appropriate evidence to establish that one is “in business as an agent,” the Neufeld Memo instructs adjudicators to “focus on whether the petitioner can establish that it is authorized to act as an agent for the other employers for the purposes of filing the petition.”

    This guidance should serve to end some of the irregularities in adjudications of O and P petitions filed by U.S. agents. The Neufeld Memo instructs adjudicators that the petitioner is not required to demonstrate that he/she normally serves as an agent outside the context of the petition. Therefore, one need only establish that petitioner is duly authorized to act in the employers’ place for the limited purpose of filing the O or P petition with USCIS to demonstrate that one is “in business as an agent”.

    Conservatively, however, we would still recommend supplementing the petition with other forms of probative evidence to avoid an RFE, such as (i) a statement confirming the relevant information [itinerary, names and addresses of the series of employers] signed by the petitioner and the series of employers; (ii) other types of agency representation contracts; (iii) agency fee arrangements; and/or (iv) statements from the other employers regarding the nature of petitioner’s representation of the employers and beneficiary.

    The Definition of “U.S. Sponsoring Organization” as it Applies to the P Visa Classification

    A “P” petition filed by a U.S. sponsoring organization is also subject to specific guidelines. A sponsoring organization is defined as “… an established organization in the U.S. which will not directly employ a P-1, P-2 or P-3 alien but will assume responsibility for the accuracy of the terms and conditions specified in the petition.”

    A sponsoring organization therefore can qualify as a petitioner if it can provide evidence, such as a written contract between it and the beneficiary that, although it will not directly employ the beneficiary, it will guarantee the terms and conditions of the employment of the beneficiary.

  • 17Nov
    H-1B Visa News Comments Off on USCIS Updates The Number Of H-1B Petitions Filed Under The Cap

    USCIS has once again updated its announcement regarding the number of H-1B petitions it has received and counted towards the H-1B cap. As of November 6, USCIS has received approximately 54,700 H-1B petitions counting toward the Congressionally-mandated 65,000 cap.  As such, USCIS continues to accept petitions subject to the general cap.

    Since USCIS has received 20,000 petitions qualifying for the advanced degree cap exemption, any H1-B petitions filed on behalf of a foreign national with an advanced degree will now count toward the general H1-B cap of 65,000. 

    As such, USCIS will continue to accept both cap-subject petitions and advanced degree petitions until a sufficient number of H-1B petitions have been received to reach the statutory limits, taking into account the fact that some of these petitions may be denied, revoked, or withdrawn.

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  • 28Oct
    O-1 Visas, P Visas Comments Off on USCIS Clarifies Requirements For “Agents” Filing As Petitioners For The O and P Visa Classifications

    As a result of multiple inquiries from the Service Centers and the public, USCIS recently issued new guidance to clarify (for performing arts associations and their members) the regulatory requirements for “agents” who file as petitioners for the O and P visa classifications.

    Under 8 CFR 214.2(o)(2)(i) and 8 CFR 214.2(p)(2)(i), O and P petitions may only be filed by a U.S. employer, a U.S. agent, or a foreign employer through a U.S agent.

    Both the O and P regulations provide that if the beneficiary employee will work concurrently for more than one employer within the same time period, each employer must file a separate petition with the Service Center that has jurisdiction over the area where the foreign national will perform services, unless an “established agent” files the petition.  See 8 CFR 214.2(o)(2)(iv)(B); 8 CFR 214.2(p)(2)(iv)(B).

    A petition filed by an “established agent” is subject to several conditions under the law.  A petition involving multiple employers may be filed by a person or company in business as an agent as the representative of both the employers and the beneficiary, if the following evidence is supplied:

    (a) The supporting documentation includes a complete itinerary of the event or events;

    (b) The itinerary specifies the dates of each service or engagement, the names and addresses of the actual employers, and the names and addresses of the establishments, venues, or locations where the services will be performed;

    (c) The contract between the employers and the beneficiary is submitted; and

    (d) The agent explains the terms and conditions of the employment and provides any required documentation.

    See 8 CFR 214.2(o)(2)(iv)(E)(2) and (p)(2)(iv)(E)(2).  In addition, an agent who is also the beneficiary’s employer may file a petition, but the agent must specify the wage offered and the other terms and conditions of employment as described in the contractual agreement between the agent/employer and the beneficiary employee.  Therefore, while the regulations permit an agent to file a petition on behalf of multiple employers (including the agent/employer itself), the regulations require that the agent be “in business” as such an agent.

    An employer that files a petition on behalf of other employers under the guise of being such employers’ “agent” does not meet this condition.  For example, if Employer A files a petition for a beneficiary it will be sponsoring, and submits an itinerary that includes performances for the beneficiary with other employers, at different times, and at different venues, USCIS generally would only approve the petition for Employer A and deny the petition with respect to the other employers.

    Such a petition may be approved with respect to all employers only if Employer A can establish to the satisfaction of USCIS that it is “in business as an agent,” and that the other employers are its clients.  This may be accomplished by agent-Employer A submitting all of the required evidence listed above, as well as evidence of the agency relationship, such as a copy of its contract with the other employers. 

    Should you have any further questions regarding the O and P visa classifications, please do not hesitate to contact us.

  • 26Oct
    H-1B Visa News Comments Off on The H-1B Quota – Has the Time Come for its Demise?

    There is no doubt that the H-1B program has been the subject of intense scrutiny and contentious debate over the last several years. Indeed, there have been many recent (both successful and unsuccessful) attempts to restrict the use of H1-B visas through legislation.

    Despite the prevalent backlash, the largest users of H-1B workers continue to defend their H-1B policies, with a call for the elimination of a yearly quota or cap.  Under current law, USCIS can approve up to 85,000 new H-1B petitions, with 20,000 set aside for advanced degree graduates of universities in the United States. This year, for the first time in years (due in part to the economic woes facing us all and in part to other reasons), the quota was not reached in the first days of its availability.  In fact, as of September 25, 2009, there are still approximately 18,300 H-1B visa numbers available for the 2010 fiscal year.  Given the real impact of the economy on H-1B usage, therefore, is there any justification to place an arbitrary limit on the number of H-1B visas available in any given year?

    Consider the case of Microsoft Corp.  This tech giant, which utilizes more H1-B guest-worker visas than any other U.S. company, relates much of the company’s success to the contributions made by H-1B visa holders.  Citing that H1-B employees have always accounted for less than 15 percent of its U.S. workforce, Microsoft observes that H-1B workers, nevertheless, have long made crucial contributions to Microsoft’s innovation successes and to its ability to create additional jobs in this country. 

    Despite its recent layoff of 5,000 workers (which affected its U.S. and H-1B workers proportionately), Microsoft has stated that it is confident that its successes and ability to create jobs will only continue with the help of foreign national workers. Admittedly, Microsoft’s posture alone cannot be the impetus behind the call for maintaining a viable H-1B program.  On the other hand, a driving force for Microsoft’s success is quite telling, as the substantial majority of H-1B petitions filed by Microsoft are for core technology positions.  According to the company, technology and engineering positions account for about 90 percent of its H-1B workforce.

    Microsoft said it focuses its recruiting for core technology jobs at U.S. universities, which continue to be among the best in the world for computer science and engineering graduates. However, as one study found, in 2005 temporary residents earned more than 40 percent of the engineering and computer science degrees at U.S. higher education institutions.  For doctoral degrees, that number was even higher, as temporary residents accounted for 59 percent of the degrees awarded in these fields that year. Without a viable H-1B program, a vast majority of these graduates will have little or no choice but to depart the U.S. and allow other countries and economies to reap the benefits of their advanced U.S. studies.

    It is important to emphasize that rigorous compliance with the requirements of the H-1B program is essential and employers who make fraudulent use of the H-1B visa category should be punished. Indeed, any H-1B reform efforts should ensure that users of the program follow both the spirit and the letter of the law.  Such reform efforts, however, should also recognize that placing an arbitrary limit on the number of H-1B visas available in any given year does nothing more than serve as a temporary, shortsighted victory for critics of the H-1B program—resulting in our failure to both attract and retain some of the best and brightest from around the world.

     

  • 09Oct
    Green Card News Comments Off on Department of State Announces The Opening of Registration For the DV-2011 Diversity Visa Lottery

    The Department of State announced the opening of the registration period for the DV-2011 Diversity Visa lottery. Entries for the DV-2011 Diversity Visa lottery must be submitted electronically between noon, Eastern Daylight Time (EDT), Friday, October 2, 2009, and noon, Eastern Standard Time (EST), Monday, November 30, 2009.

    Instructions for the 2011 Diversity Immigrant Visa Program (DV-2011)

    The congressionally mandated Diversity Immigrant Visa Program is administered on an annual basis by the Department of State. The Program makes available 55,000 permanent resident visas (green cards) annually to persons from countries with low rates of immigration to the United States.

    The annual DV program makes permanent residence visas available to persons meeting the simple, but strict, eligibility requirements. Applicants for Diversity Visas are chosen by a computer-generated random lottery drawing. The visas, however, are distributed among six geographic regions, with a greater number of visas going to regions with lower rates of immigration, and with no visas going to citizens of countries sending more than 50,000 immigrants to the U.S. in the past five years. Within each region, no one country may receive more than seven (7%) percent of the available Diversity Visas in any one year.

    Click here for Detailed Requirements for Entry and Instructions.

    Countries Not Eligible

    For DV-2011, natives of the following countries are not eligible to apply (the term “country” includes countries, economies and other jurisdictions explicitly listed herein):

    Brazil, Canada, China (mainland-born), Colombia, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, India, Jamaica, Mexico, Pakistan, Philippines, Peru, Philippines, Poland, South Korea, United Kingdom (except Northern Ireland) and its dependent territories, and Vietnam.

    Persons born in Hong Kong SAR, Macau SAR and Taiwan are eligible.

    No countries have been added or removed from the list of eligible countries. The list of eligible countries remains the same as for DV-2010.

    Electronic Registration

    The Department of State implemented the electronic registration system beginning with DV-2005 in order to make the Diversity Visa proves efficient and secure. The Department utilizes special technology and other means to identify those who commit fraud for the purposes of illegal immigration or who submit multiple entries. For DV-2011, those who submit entries may check the status of entries online and determine whether their entries are selected or not. Successful entrants will continue to receive notification letters by mail.

    Application Submission Dates

    Entries for the DV-2010 Diversity Visa Lottery must be submitted electronically between noon, (EDT) (GMT-4), Friday, October 2, 2009 and noon, EST (GMT-5), Monday, November 30, 2009. Applicants may access the Electronic Diversity Visa Entry Form (E-DV) during the registration period starting at noon (EST) on October 2. Paper entries will not be accepted. Applicants are strongly encouraged to not wait until the last week of the registration period to enter. Heavy demand may result in web site delays. No entries will be accepted after noon, (EST), on November 30, 2009.

    If you have any questions regarding your Entry, please do not hesitate to contact us. 

  • 08Oct
    H-1B Visa News, Immigration Reform Comments Off on Innovation Through Immigration – A “Nobel” Pursuit

    At a time of historically high unemployment rates, when it becomes convenient, even “fashionable” to highlight the frailties and abuses of the H-1B program, it is refreshing to take note of the “feel good” story of certain immigrants who have come to this country and achieved greatness and are living the “American Dream.”  Indeed, the recent Nobel Prizes awarded this week to the first six (6) Nobel laureates were to U.S. citizens—four of whom were born outside the United States.  Perhaps we should take a closer look at the current popular theme of closing our borders to protect U.S. workers.

    The recent resurgence of xenophobia is not only shameful but it obscures reality.  However one may feel about Silicon Valley’s employment of large numbers of H-1B workers, overseas brainpower helps to drive the research needed to power our economic growth.

    No doubt there are “bad apple” employer sponsors that take advantage of the H-1B program and exploit foreign national workers. Such abusers need to be brought to justice swiftly. However, those abusers should not overshadow the overall benefits of the H-1B program or the bigger picture of U.S. immigration.

    Indeed, there is no question that without a visa category which allows the United States to attract some of the world’s best and brightest, our economy will not renew or prosper to its fullest extent. This is especially so given the marked decline in the output of U.S. born scientists and researchers from our colleges and universities. According to statistics from the National Science Foundation released in February, foreign-born science and engineering students in 2003 earned one-third of all Ph.D’s awarded in the United States.

    So let’s take a break from the criticism and scrutiny of the H-1B program (and U.S. immigration in general) and celebrate the achievements of U.S. citizen/Australian-born Dr. Elizabeth Blackburn, professor at the University of California-San Francisco, and recipient of the Nobel Prize for Medicine.  Dr. Blackburn’s discovery of a “Jekyll and Hyde” enzyme present in our cells could have a universal benefit in helping extend healthy lifestyle and prevent cancer.  In the words of Dr. Blackburn, “the flow of intellectual ideas is crucial,” and “to have borders for it seems counterproductive.”

    We should likewise celebrate the achievements of U.S. citizen Charles Kuen Kao, born in Shanghai, and U.S. citizen William Boyle, of Bell Laboratories, born in Nova Scotia, who were joint recipients of the Nobel Prize for Physics for laying the foundations of modern communications through fiber optics; as well as that of U.S. citizen Jack Szostak, of Harvard Medical School, joint recipient of the Nobel Prize in Medicine, who was born in London.

    These individuals immigrated to the United States in search of opportunity, the “American Dream”, and they have certainly all succeeded in finding it.  Such “opportunity” benefits us all.  However, in a bad economy, the natural reaction becomes a shortsighted one — to turn one’s back on U.S. immigration by touting its abuses and shortcomings rather than offering comprehensive solutions to fix its problems. 

    The truth is, we should all be thankful that such accomplished individuals chose not to remain in their home countries, or to seek opportunity elsewhere. The innovation and excellence upon which our country is built remains today as dependent on the tremendous contributions of those born abroad as on the day of its founding.  Let us not allow the abusers of the H-1B program to foster false patriotic manifestations and cloud the fact that the H-1B temporary worker program is essential to continued innovation and a vibrant U.S. economy.

    New York Times columnist, Thomas Friedman, summed it up best when he wrote:

    “Dear America, please remember how you got to be the wealthiest country in history. It wasn’t through protectionism, or state-owned banks or fearing free trade. No, the formula was very simple: build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies, pour into it the most diverse, smart and energetic immigrants from every corner of the world and then stir and repeat, stir and repeat, stir and repeat, stir and repeat.”

  • 07Oct
    E-Verify System, EB-5 Investor Visas Comments Off on President Obama Signs Stopgap Bill – Four Immigration Programs Extended Through 10/31/09

    Up against a midnight deadline to avoid a government shutdown, the Senate last Wednesday passed legislation that temporarily extended spending on most federal programs at current levels while raising Congress’ budget by 6 percent.  On the same day, President Obama signed a continuing resolution to fund ongoing federal government operations through October 31, 2009. 

    Included in the legislation were provisions to extend the E-Verify, Religious Worker, Conrad 30 and EB-5 programs for an additional 30 days, although these programs are likely to be extended for an additional period of time  once the Senate and House conference the FY10 Homeland Security Appropriations bill (H.R. 2892) in the coming weeks.

  • 25Sep
    H-1B Visa News Comments Off on The H-1B “Brain Drain” — It’s Not Just the Economy, Stupid!

    It isn’t just the economy driving the “brain drain” associated with the ever-increasing numbers of talented workers opting to leave the U.S. Rather, the unrealistic immigrant visa quotas for employment-based green cards are also to blame as a formidable obstacle contributing to this recent trend.

    The much-anticipated October visa bulletin issued by the Department of State did little to give new hope to the long line of skilled workers waiting for available immigrant visa numbers.  Indeed, with quotas backlogged more than 7 years in the skilled worker category, countless thousands of talented H-1B workers are not only captive to their existing employers (with the hope that they will remain employed by their employer by the time they are permitted to file the final step of the green card process and achieve employment portability, if they wish), but are also constrained from seeking or accepting any significant promotions for fear of having to restart the green card process all over again.

    A maximum of 140,000 green cards are issued to employment-based visa holders each year, and that quota is then divided into categories for classes of workers and set a percentage for each country.  As such, because there are presently higher volumes of skilled workers immigrating from India and China, those individuals are required to wait even longer than foreign nationals from other countries.  This rigid system is not based on skill, merit or industry need, but simply because we have an antiquated, per country quota.

    It should come as no surprise then that potential and existing U.S. H-1B workers are pursuing other options abroad—which not only avail such workers of more rapid career advancement, but an opportunity to obtain permanent residence in a far more efficient manner than the U.S. process currently offers.  One need not look farther than just north of our border for an accelerated system of obtaining permanent residence for skilled workers. For example, the Province of Alberta Canada has a program which allows U.S. H-1B workers to gain permanent residency in Canada under a fast track (12 month) program. The program does NOT require the H-1B holder to have a job, employer or sponsor. The H-1B worker can apply independently.  Alberta’s fast track program only requires that the applicant be working and have a minimum of one year of work experience in the United States pursuant to one of the temporary skilled worker visa categories (H-1B, H1-B1, H-1C, E-3) and that the applicant’s occupation be included in the “Regional Operations Under Pressure List” For Alberta.

    So, while “It’s The Economy, Stupid” has been (and continues to be) a popular refrain since the time of the Clinton Administration, perhaps we need to ask why the United States continues to perpetuate a closed-minded, isolationist approach to immigration quotas that achieves nothing but drive out some of our hardest working, most talented foreign national workers – many of whom might otherwise help the U.S. return to a healthy and vibrant global economy.

  • 11Sep
    H-1B Visa News Comments Off on H-1B Workers—Labor on the Cheap or Through a Complex Process Fair to U.S. Workers?

    The H-1B program is designed to allow employers to hire foreign nationals to fill specialty occupations; that is, those positions that require a theoretical and practical application of highly specialized knowledge through the attainment of at least a bachelor’s degree (or an equivalent combination of education and/or experience) in a specific discipline. 

    Critics of the H-1B program claim that the program must be modified to combat what they refer to as “legal discrimination” and “displacement of U.S. workers”.  Indeed, U.S. Sens. Chuck Grassley (R-Iowa) and Dick Durbin (D-Ill.) have recently introduced legislation which, among other things, would require employers to certify that no U.S. workers were available to fill the proffered position before an H-1B petition may be filed on behalf of a qualified foreign national.  Proponents of the H-1B program counter such allegations by pointing to the safeguards for U.S. workers already built in to the H-1B program.  Additionally, what the media fails to point out is that the H-1B program is not specifically tailored to the IT industry.  Rather, it fills necessary positions in a broad array of disciplines, such as architecture, accounting, marketing, management and operations research, with some of the brightest, most capable individuals available worldwide.

    Such talent comes at a substantial cost to employers — compliance with the H-1B program is complicated and burdensome.  Prior to sponsoring a foreign national for an H-1B petition, employers must (a) obtain a prevailing wage assessment from the U.S. DOL or an acceptable alternative survey source for the geographic area in which the foreign national will work, (b) agree to pay the H-1B worker the higher of (i) such prevailing wage or (ii) the actual wage it pays to other employees in similar roles, (c) prepare a memorandum describing the factors (e.g, experience, qualifications, education, job responsibilities) that it considered in determining the foreign national’s wage, (d) post a public notice of the H-1B employee’s job title and salary in two locations for ten days at the foreign national’s place of employment, and (e) maintain a “public access file” containing evidence of each of the foregoing, which must be updated regularly and made available to the public at any time.

    In addition, in the event of an audit by DOL or USCIS, the employer must be prepared to produce additional information, including payroll records showing the wage rates for the position, any data used to establish the actual wage for the position, and a copy of documents given to employees describing employee benefits.

    In addition to developing the appropriate regulatory compliance program associated with hiring H-1B workers, H-1B employers must also expend resources to hire experienced HR and legal personnel to insure that the employer remains compliant with the regulatory scheme.  HR, with advice of counsel, is typically charged with the responsibility of updating the public access files when appropriate and budgeting and timing visa extensions as well as developing other, longer-term immigration strategies for their most valued foreign national employees. Additional expenses associated with the H-1B program include counsel fees and the rather excessive filing fees required by USCIS, most of which go toward educating and training U.S. workers and uncovering fraud within the H-1B program. (see our prior post entitled, “H-1B Fraud Fee, Money Well Spent?) 

    When one considers the sum of such resources expended — the only logical conclusion one can derive is that H-1B workers are clearly not “cheap labor” as some would have you think. Rather, the H-1B program involves a significant process and expense for employers to attract some of the best and brightest from all over the world.

    No doubt there are employers who blatantly ignore the H-1B rules and take advantage of H-1B workers.  In this vein, the U.S. government is aggressively pursuing indictments against alleged fraudulent use of the H-1B program. (see also our previous post entitled, “H-1B Audits On The Rise”).

    On the other hand, employers who abide by the rules will attest that the H-1B regulations are quite complex and that, with proper enforcement of the existing regulations, the H-1B program provides a viable option for maintaining a competitive workforce.  Indeed, given the above-described built-in safeguards for U.S. workers, taking a strict protectionist position which favors abolishing –- or even weakening — the H-1B program would do nothing but send operations offshore; thus, in effect, cutting off our nose to spite our face.

  • 08Sep
    E-Verify System, Worksite Enforcement Comments Off on E-Verify Is Now Mandatory For Federal Contractors, What Does This Mean For Your Business?

    Effective today, companies that contract/subcontract with the Federal Government must use the E-Verify system to confirm that their employees can work in the U.S. legally. The regulation is not limited to American Recovery and Reinvestment Act of 2009 (“ARRA”) stimulus funds, but to all appropriations contracts with projects [exceeding $100,000 and for subcontractors with projects exceeding $3,000] with the federal government beginning September 8 – with some very limited exceptions. 

    Accordingly, American companies which contract with the federal government for goods or services (including construction contracts) will likely see existing contracts modified to require E-Verify review of (i) all persons hired during the contract term and (ii) all persons assigned by the contractor to perform work on the federal contract.

    Practically speaking, what does this mean for your business?

    Businesses already enrolled in E-Verify for more than 90 days are required to continue to initiate verification of newly hired employees within three business days of their start date, but have 90 days from the effective award date to begin using E-Verify for each employee already on their staff who is performing work upon an existing federal contract. (Any transition to using the system as a federal contractor does not allow you to stop using E-Verify for its new hires on the standard three-day schedule).

    For businesses not yet enrolled, the contractor and any covered subcontractor will be required to enroll in E-Verify within 30 calendar days of the contract or subcontract award date. New enrollees will be provided an additional 90 days — for a sum total of 120 days — to enroll and initiate verification queries for employees already on their staffs assigned to fulfill a federal contract and to begin using the system to verify all newly hired employees.

    Why should employers care about this regulation?

    USCIS is “data mining” E-Verify, resulting in the identification of compliance failures, such as the failure of an employer to E-verify all employees or failure to terminate employees after a final non-confirmation of employment eligibility. Such monitoring will result in referrals to Immigration and Customs Enforcement (“ICE”) for follow-up inspections.

    Accordingly, non-compliant employers (but, more commonly unrepresented businesses) may increase the prospect of an ICE inspection.

    E-Verify scheduled to sunset on September 30, 2009

    Although the District Court recently dismissed the Chambers’ emergent motion seeking to enjoin the mandatory implementation of the E-Verify rule pending appeal, another potential obstacle may lie ahead for the E-Verify rule – it is currently scheduled to expire on September 30 under a sunset provision unless Congress takes action before then. 

    The Senate has already passed an amendment that would permanently reauthorize the program and require federal contractors and subcontractors to use the program in order to verify that all new hires and existing employees directly performing work under the terms of the contract be authorized to work in the United States. The House approved a two-year extension of E-Verify when it passed the Homeland Security Appropriations bill in a 389-37 vote. However, the bills have yet to be reconciled in a conference committee. 

    Should you have any further questions regarding your business’ present obligations with respect to E-Verify, please do not hesitate to contact us.

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