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Advanced Degree H-1B Exemption Passed And More

House Republicans blocked the 9/11 bill which included many anti-immigration provisions and will not become law - there may still be one last opportunity to have 9/11 bill pass, in early December when Congress reconvenes. The FY 2005 omnibus bill appropriations was passed by the House and Senate with various immigration-related provisions. The bill now awaits the President's signature before it becomes law. Below are key changes to the H-1B and L-1 Visa program contained in the FY 2005 Omnibus Appropriations Bill.

H-1B Visa Program Changes (effective 90 days after Bill is signed into law, unless otherwise noted below)

  • H-1B exemption - exempts from H-1B cap up to 20,000 foreign nationals with Masters and higher degrees from US graduate schools (to be determined whether this applies to new applications only or includes current pending petitions)
  • Additional costs to file H-1B petition - in addition to the basic filing fee and the (optional) premium processing fee
    • worker retraining fee - permanently reinstated to $1500 per H-1B petition (previously $1000); for employers with less than 25 full-time employees, the retraining fee is $750 per H-1B petition (effective immediately)
    • fraud prevention and detection fee - $500 fee imposed for initial H-1B, L-1 petitions, and change of status petitions
  • Prevailing wage - employer must pay 100% of prevailing wage or higher (currently 95%)
  • DOL investigations - increased investigative powers to initiate investigations against employers based on reasonable cause (effective immediately)

L-1 Visa Program Changes (effective 180 days after Bill is signed into law)

  • No subcontracting of L-1 visa holders to third party employers - legislation prohibits L-1 visa holders to work outside of petitioning employer's worksite with limited exceptions
  • L-1 blanket - one year requirement is reinstated (reduced 6-month period for L-1 blanket period eliminated); applies to new L-1 petitions.

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