This report was released by the American Immigration Lawyers Association today. AILA’s Business Committee has prepared this list of Frequently Asked Questions about the H-1B provisions of the American Recovery and Reinvestment Act of 2009 (ARRA or the “Stimulus Bill”) and its impact on H-1B employers. Some of the FAQs do not have clear answers, and the Committee will be working with the USCIS liaison committees to clarify these points in the coming weeks.
What Provision of the American Recovery and Reinvestment Act of 2009 Affects H-1B Employers?
Section 1611 of the ARRA, called the Employ American Workers Act, was added to the stimulus bill by Senators Sanders (I-Vt.) and Grassley (R-Iowa) to limit certain banks and other financial institutions from hiring H-1B workers unless they had offered positions to equally- or better-qualified US workers, and to prevent banks from hiring H-1B workers in occupations in which they had laid off US workers.
What Companies Are Covered by the EAWA?
The EAWA places new restrictions on H-1B petitions filed by any company that receives funding under title I of the Emergency Economic Stabilization Act of 2008 (Public Law 110-343, also known as the “TARP Bill”) or that receives funding under Section 13 of the Federal Reserve Act (12 U.S.C. § 342 et seq., authorizing the Federal Reserve’s “Discount Window” for short-term, secured loans to financial institutions and other companies).
Note that companies receiving funds under the AARA (the “stimulus bill”) itself, such as engineering companies that contract with states to build the transportation infrastructure funded by the bill, are NOT subject to any restrictions – only banks and other companies receiving TARP money, or credit directly from the Federal Reserve System, are covered.
How Do I Find Out Whether An Employer Has Received Funds Triggering Application of EAWA?
Recipients of funding under the TARP program are disclosed publicly by the US Treasury, and weekly reports are available on the Emergency Economic Stabilization Act page of the Treasury Department website.
Recipients of funding through the Federal Reserve’s Discount Window program are not disclosed to the public.
What Restrictions Are Placed On Covered Employers?
The EAWA provides that it will be unlawful for any recipient of funding to “hire” an H-1B nonimmigrant unless the recipient has complied with the extra Labor Condition Application attestations previously imposed on “H-1B dependent employers.” These extra attestations are:
that the employer has, prior to filing the H-1B petition, taken good-faith steps to recruit U.S. workers for the position for which the H-1B worker is sought, offering a wage that is at least as high as that required under law to be offered to the H-1B worker. The employer must also attest that, in connection with this recruitment, it has offered the job to any U.S. worker who applies and is equally or better qualified for the position.
that the employer has not laid off, and will not lay off, any U.S. worker in a job that is essentially equivalent to the H-1B position in the area of intended employment of the H-1B worker within the period beginning 90 days prior to the filing of the H-1B petition and ending 90 days after its filing.
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