What to Expect When You Pass Through U.S. Immigration: A Guide for Non-immigrant Employees and Other Business Travelers (Part 1)
INTRODUCTION:
This briefing will cover a range of issues and problems that
nonimmigrant employees in the H-1B, L-1, and B-1 categories may
encounter at Ports-of-Entry to the United States.
In previous decades, most business travelers found the process
of clearing U.S. Immigration was quick, easy and non-intrusive. Few
persons working for legitimate businesses encountered serious
problems. Not many were ever closely questioned about the nature or
location of their employment, their qualifications, or sources and
amount of compensation; questions were rarely raised about the
business activities of the employer. It was assumed that these
questions and issues had already been satisfied before USCIS
approved a petition and the U.S. Consul issued the visa.
In recent years, however, that has changed for many
non-immigrants. Now, particular problems are encountered by a
substantial number of arriving passengers from countries in Asia
that provide the majority of H-1B skilled temporary workers.
Similar questions are raised with some managers and
specialized-knowledge employees of multinationals being transferred
into the U.S. in the L-1A and L-1B categories. Arriving B-1
Visitors for Business also face much closer scrutiny than
previously. We will cover some of the specific issues that arise
for these categories of travelers in the sections below.
The basic process of U.S. Immigration inspections has not
essentially changed. Before anyone can be granted admission into
the United States, all international passengers must be screened by
an officer of Customs and Border Protection (CBP). Upon
encountering a nonimmigrant visa holder, the CBP officer may ask
questions and take other steps to determine two essential
requirements. To be admitted, the arriving alien must:
- hold a lawful visa; and if already in non-immigrant status,that must have be lawfully maintained; and,
- have “bona fide non-immigrant intent” consistent withtheir visa status.
Upon being satisfied of those issues, the person will be
admitted in most cases for the duration of status without any
delay. On most occasions the questions will be brief and to the
point, such as “Do you still work for X-Y-Z Corporation in
Chicago, Illinois?”, or “How many H-1B visas have you
held?” If, however, the officer develops reason to doubt the
bona fides of the job offer or that the person has violated status
in the past, the applicant will be sent to “secondary
inspection” for further, more in-depth, questioning.
The pages that follow will go through that initial encounter and
any secondary inspection so that the arriving nonimmigrant knows
what to expect, can provide the proper documents, and is best able
to respond to questions in a fully-informative and honest fashion
that satisfies the requirements of the law, as well as the
particular informal rules that CBP and other agencies have
developed.
NOTE: As the reader will find, the actual
agency rules are, increasingly, different from those written in the
federal statutes and published agency regulations. In addition, the
situation is further complicated by interpretations of the law
drawn by CBP and ICE that differ in some particulars from those
accepted by the other two agencies involved in immigration, the
U.S. State Department and USCIS. Obtaining admission in H-1B, L-1
or B-1 status means that the person must satisfy several sets of
standards. The knowledge of how these standards differ, and how
they overlap, is essential to the ability of foreign workers to
continue employment and their companies to operate in the United
States.
I. OVERVIEW
- For several years, H-1B multinational managers and specialtyworkers arriving at U.S. ports-of-entry have experienced a rise in
what many perceive as harassment and intimidation by CBP and ICE
officers.
- The numbers of admissions refusals and visa revocations haverisen sharply in recent years, at the same time that demand for
these visas has dropped by more than 40 percent. There is a
correlation.
- Agency policy has changed dramatically, but without acorresponding change in the underlying statute and published
regulations. Most notably, the January 8, 2010 USCIS policy memo,
the “Neufeld memo” alarmed many Indian nationals
working on H-1B and L-1 visas for IT companies. That memo restated
an informal USCIS policy that petitioning companies must document
“control” over H-1B workers at all times, and placed
strict limits on H-1B placements at Third-Party work sites. The
memo also laid out several categories of applications that will not
be approved, including so-called “body shops”, staffing
firms that place H-1B contractors at company sites for work that is
unrelated to the petitioner’s own line of business. This
restriction, imposed by administrative edict, is similar to an
outsourcing ban placed on L-1B Specialized Knowledge workers by
law, the 2005 L-1B Reform Act. Off-site assignments for both
categories remain legal, under certain limited circumstances. While
there is no such explicit ban in the law that governs H-1B,
nonetheless, USCIS, ICE and CBP enforce a de facto ban on
H-1B outsourcing with varying degrees of strictness, and this
variation in interpretation causes problems for arriving visa
holders, and considerable anxiety because of uncertainty about how
the law will be interpreted in any particular, individual
case.
- Fears appear to have been well-founded. Within 72 hours,Customs and Border Protection (CBP) officers at Newark Airport
Port-of-Entry (POE), reportedly citing the memo, detained and
interrogated a number of lawfully employed IT consultants and
technical workers arriving on a flight from India. A number of
persons who were determined to be working off-site had their visas
cancelled, many were forced to withdraw their applications for
admission, and some were summarily removed, barred from reentry for
at least five years. While there have not subsequently been similar
mass interrogations and removals, and CBP has been retrained in
implementation of the memo, arriving nonimmigrant visa holders must
still be prepared to deal with questions and potential
misunderstandings by CBP officers about the rules governing
off-site work assignments.
II. STEPS EMPLOYERS MUST NOW TAKE TO BE COMPLIANT WITH
USCIS/ICE/CBP RULES, AND TO ASSURE H-1B READMISSION AT THE
P.O.E.
In times past, the questions raised at the POE with returning
nonimmigrant workers were usually restricted to the issue of
ongoing employment. This was normally addressed by producing a
signed letter from the petitioning company confirming continued
employment of the beneficiary, the job title, a brief job
description, salary, and date started and expected completion date
of employment. More recently, the documentation requirements for
the entry letter increased to include a copy of payroll records or
other confirmation that the employee has, in fact, received the
wage offered on the last petition.
Now, after the Neufeld memo, one must be prepared for a
far wider range of potential CBP/ICE inquiry at the POE. The
following section details the additional issues and documents that
the returning nonimmigrant should carry and be prepared to present
upon Immigration inspection.
Demonstrating the Employer/ Employee Relationship
after the Neufeld Memo and the Newark Airport
Incident
- The H-1B employer must now file an amended I-129 petition/LCAfor all but the shortest term off-site assignments (see,
Sec. III, below) – and, employers should
give a copy of amended filings to workers as part of documentation
to establish compliance.
- If the worker has worked off-site during the previous 3 years,provide that worker with a detailed accounting of all off-site
assignments and evidence that amended petitions and/or LCAs were
filed, if required. The itinerary must be consistent with
the USCIS record and the employee must be familiar with the
details. The employee must be prepared to present these
records, and answer questions about them at the POE, if issues are
raised by CBP about unauthorized off-site employment.
- CBP may also inquire about the individual’s previousnonimmigrant employment and immigration histories. The employee
should be prepared to provide at least a copy of all previous
approval notices for prior periods of employment or education in
the U.S. (I-797, I-20s EAD Forms for periods of Practical
Training), along with documentation such as copies of passports,
visas and entry stamps for any other periods of presence.
- H-1B and L-1B workers may have to prove that their workis otherwise controlled by the petitioner.
Provideemployee with a copy of amended I-129s, petition support letter and
any relevant documentation related to the following that were
provided to USCIS with petition filings or amendments, or which
might be filed at the time of next visa renewal:
- petitioner payment of salary and benefits;
- petitioner provision of training, HR, evaluations, and othersupport services;
- petitioner maintenance of supervision over employee work;
- employee work samples (if previously submitted to USCIS).
NOTE: If this paper copy of the record is
exceptionally bulky or difficult to carry, a copy of electronically
scanned copies contained on a disc, USB flashdrive or other
portable memory device may be acceptable. [See, Appendix
I, below, for additional information about CPB policies
regarding border inspection of computers and potential seizure of
laptops and other electronic storage devices and players, and
procedures for their return or destruction.]
EMERGING ISSUE: The Neufeld memo
requirement for employer “control” also bans
self-employed contractors. H-1B, L-1, and other
non-immigrants who have a substantial ownership interest in the
companies that petition for them must be able to show they are not
self-petitioning sole proprietors. These “working
directors” must show that other members of a Board can vote to
control company, including removal of the beneficiary. This is an
issue that must be overcome at the USCIS Examinations stage, and
potentially also with the Consul. It is not the sort of issue that
is routinely re-adjudicated at the border. Nonetheless, if the CBP
is looking for grounds to deny admission to the applicant, it is a
topic that may arise, and those potentially at-risk should be
prepared to address it by producing corporate documents, such as
the company’s relevant Articles of Incorporation and/or Board
Minutes, along with other documentation of ongoing employment by
the company and the company’s continued operations (including
the parent of affiliate abroad, if L-1A or L-1B).
III. Some Do’s and Don’ts for H-1B Workers
H-1B Roving Employees and Temporary Offsite Assignments: Know
What’s Legal, and What Is Not
Employers in the IT consulting industry and the Immigration Bar
are seeing federal investigators focus on alleged frauds in the
hiring and assignments of temporary foreign workers in the H-1B
visa category. Particular investigatory interest is being shown
consulting firms that employ so-called “roving
employees.”
There is some concern that this means that hiring consulting
firms that employ H-1B workers for assignments at employer sites is
now illegal or will get the contracting company and the
subcontractor (along with their employees) into trouble. That is
simply not the case, provided that certain common sense legal
standards are adhered to. We will briefly outline these legal
standards for you in a moment.
Unfortunately, the risks of criminal prosecution for violations
of changed USCIS policy and interpretation are very real, and the
new policy need not even be one that was ever published as a formal
change in law or agency regulation for prosecution to result. A
very recent example of this the case of U.S. v Vision
Systems Group, Inc. (“VSG”); see, 11 arrested, indicted in multi-state visa fraud –
US Immigration.
On October 14, the U.S. District Court for Central Iowa accepted
a plea agreement in a case that has been watched nervously by some
in the IT-BPO outsourcing industry. The case is seen as a test for
whether the U.S. government can successfully criminalize certain
practices that have long been used by some staffing firms in the
global Information consulting sector, particularly those who
recruit staff in India. [For additional background on the
VSG case, see Appendix
II]
How could this have been avoided? There are two
answers to that question: things that IT contractors may still do
with H-1B workers, and things they must never do.
WHAT’S ILLEGAL- Let’s tackle the easier
part of that: Things an IT Contractor Must Never Do With
H-1B workers:
- Never start an H-1B worker at a clientworksite without first filing an amended I-129 petition and LCA for
that site, unless that assignment is short-term (lasting no more
than 10 days in a row during any year at any particular site for
regular employees, five days for itinerate or “roving”
employees who need not return to a designated primary work
site).
- Never “bench” an H-1B worker– even if there is no assignment available, and it costs
money out of pocket, the H-1B worker MUST continue to be
paid at least the wage specified on the current petition for as
long as he remains an H-1B employee.
- Never, EVER falsify tax statements,withholding reports, immigration records, or any document or paper
that is going to be filed with the federal government –
if it goes to one federal agency, assume it goes to all of them
– because, today, it can and it does, and it is easily
accessed from interlinked gov’t data bases. The employer must
keep a complete and up-to-date LCA public inspection file for each
employee. It should also keep a separate H-1B compliance file with
complete records of any outside assignments, apart from the LCA
public inspection file and the I-9 compliance file. The employer
should be auditing its own records (or hire a competent firm to do
so), and filing corrected statements if it finds any discrepancies.
Self-audits and resulting affirmative voluntary disclosure by
employers of compliance problems will not have the same dire
consequences as falsification or “flubbing” of
information requested by auditors and inspectors.
- Never, EVER lie or make misleading statements at thePort-of-Entry.
False statements by employees at thePort-of-Entry can have extremely serious consequences for the
employer and the employee. The employee should never “wing
it” about answers to CBP questions, and should be instead
thoroughly familiar with potential issues or simply respond,
“I do not know the answer to that question. That is
something to ask my employer about. I would like to contact my
employer now so they can answer these questions for
you.”
WHAT’S LEGAL – And, Finally, Things
that H-1B Workers Can Safely and Legally Do:
- H-1B employees can be legally assigned to client sites aseither short-term placements or as “roving employees”.
This may be done legally for short-term assignments without filing
any additional paperwork with USCIS or the Department of Labor. The
specific USCIS regulation that allows that is as follows:
Short Term Placement—20 C.F.R.
§655.735(c). An H-1B in the U.S. under an LCA
may be sent to a new worksite which is not covered by an LCA in the
occupation but only up to a maximum of 30 days each year and up to
60 days each year if the H-1B spends substantial time at a
permanent worksite, if s/he continues to maintain an office or work
station at the permanent worksite and if her U.S. residence or
place of abode is located in the area of the permanent
worksite. http://www.dol.gov/dol/allcfr/title_20/Part_655/20CFR655.735.htm
1. SHORT-TERM PLACEMENTS: A Question of
Time
Whether filing an amended petition is required by the original
employer is required depends upon the period of time the worker
will be assigned off-site.
The regulations at 20 CFR Part 655.735 impose further conditions
on such short-term assignments, as follows: [Also, see,
Appendix III]
(2) The employer shall not place, assign, lease, or otherwise
contract out any H-1B nonimmigrant(s) to any worksite where there
is a strike or lockout in the course of a labor dispute in the same
occupational classification(s) as that of the H-1B
nonimmigrant(s).
(3) For every day the H-1B nonimmigrant(s) is placed or assigned
outside the area(s) of employment listed on the approved LCA(s) for
such worker(s), the employer shall:
(i) Continue to pay such worker(s) the required wage (based on
the prevailing wage at such worker’s(s’) permanent
worksite, or the employer’s actual wage, whichever is
higher);
(ii) Pay such worker(s) the actual cost of lodging (for both
workdays and non-workdays); and
(iii) Pay such worker(s) the actual cost of travel, meals and
incidental or miscellaneous expenses (for both workdays and
non-workdays).
2. ROVING EMPLOYEE – The regulations define a
type of H-1B employee whose work is “peripatetic”
(roving) in nature, in that the normal duties of the occupation
require frequent travel.
20 CFR §655.17. “Peripatetic” is included under
the definition of “place of employment.”
Peripatetic workers may travel constantly, but may not
spend more than five consecutive days in one place, and no more
than 30 days total in a calendar or fiscal year. For such
peripatetic workers, a new location is not considered a new
“worksite,” and therefore does not require a new LCA.
[See, Appendix IIIB]
Similarly, normal H-1B workers (who return to a fixed
work site) who travel occasionally on a casual short-term basis not
exceeding 10 consecutive days to a new location, 60 days total in a
year, in any location are not considered to have a new worksite
with new LCA requirements.
Id. This type of situation is also covered under the “place
of employment” definition.
Although, in these cases the employer is not required to file an
amended petition or obtain a new certified LCA for each new
location to maintain compliance, the employer is required to pay
travel expenses for each day the H-1B employee is traveling (both
weekdays and weekends).
The short-term placement rules permit an H-1B worker to travel
up to 30 or 60 days per year to another “place of
employment.” However, the employer may not use the short-term
placement rules in any area of employment for which the employer
has a certified LCA for the occupational classification. If there
is an open slot on an approved “basket LCA”, that must be
used.
If the employer has such a certified LCA with an open slot, then
the employer must use that and add a copy of that LCA to the
employee’s public access file. If the employer has a certified
LCA for that location and occupation, but it doesn’t have any
open slots, then the employer must file a new LCA for that
worker.
The regulations specifically prohibit employers from
continuously rotating H-1B employees to short-term placements in a
manner that would defeat the stated purpose of these rules to give
employers flexibility and enough time to file a new LCA.
Consult the regulations for a detailed description of this
rule.
Also note that the filing of a new LCA will likely require the
filing of an amended H petition due to material change in
employment.
Companies that have had compliance issues, are heavy H-1B and
L-1 users, or routinely assign non-immigrant workers to third-party
sites need to consult with counsel, and may be advised to always
file an amended petition before any H-1B or L-1 placement.
4. LONG-TERM ASSIGNMENTS: A Question of
Control
Any external assignment presupposes that the original H-1B
employer continues to maintain control over the employment of the
H-1B worker while (s)he is assigned at the client site. In general,
the regulatory definition of control over employment for this
purpose is contained in the following definition [8 CRF
Sec. 214(h)(4)(ii)]:
United States employer means a person, firm, corporation,
contractor, or other association, or organization in the United
States which:
( 1 ) Engages a person to work within the United States;
( 2 ) Has an employer-employee relationship with respect
to employees under this part, as indicated by the fact that it may
hire, pay, fire, supervise, or otherwise control the work of any
such employee</strong>; and
( 3 ) Has an Internal Revenue Service Tax identification
number.
In any filing of an amended petition or second petition, USCIS
will look for evidence that the terms of control over the
employment and activities of the H-1B employee are clearly spelled
out in an agreement between the original employer and the end
client. If a copy of a contract or other binding agreement is not
included with a petition filing, the Service will likely issue a
Request For Evidence (RFE). That notice normally includes
boilerplate language stating “[t]his Service accepts that
you are the employer, not an agent, and that you retain control
over the beneficiary’s employment. A copy of the agreement(s)
are needed to establish that the employment of the beneficiary is
not speculative in nature, and that the beneficiary will be
employed in fact. Service regulations specify that aliens admitted
to the United States as nonimmigrant workers must have services to
perform….”
Questions may also arise as to which entity, the petitioner or
its client, controls day-to-day supervision of the work product.
While the client may have significant input into that product, and
the work that went into it, ultimate control over the terms and
conditions of the H-1B employee’s work – hours
worked, performance review standards, specification of the job
duties – ultimately rests with the employer, in fact, as
specified in the contract between the H-1B petitioner and its
client. The relevant terms of the contract for services
between the H-1B petitioner and its client should mirror those
specified in any employment contract with the worker.
The January 8, 2010 Neufeld memo lays out an elaborate
list of 38 types of documents in five categories that petitioners
must supply at the time of filing to satisfy the memo’s
“control” requirements, and a long list of other
documents that must be filed for renewals to establish continued
compliance and maintenance of lawful nonimmigrant status.
This is not the place for an extended discussion of the
Neufeld memo, the requirements and implications of which
are far reaching. Nonetheless, the employee who will be
reentering the U.S. at a Port-of-Entry should be prepared with a
copy of documents that establish his or her ongoing employment
control by the petitioner. These documents will also help
to establish the non-immigrant worker’s maintenance of status
under that interpretation document that has been adopted as
guidance by other agencies, including CBP.
A GREY AREA: TEMPORARY ASSIGNMENT OF
H-1B EMPLOYEES TO CLIENT WORK SITES OF MORE THAN 30/60-DAYS
CUMMULATIVE PERIOD WITHIN THE SAME YEAR
The Neufeld memo’s “complete itineraries”
requirement casts the continued viability of the short-term
assignments and roving H-1B practices into doubt in some cases.
Without a complete itinerary, it is problematic that USCIS
will now approve initial petition filings and amended petitions
that don’t credibly specify the agenda for all worksites for
the entire duration of the validity period. Furthermore,
the VSG fraud prosecution for setting up an office
in a low-wage location in Iowa, and then assigning H-1B workers to
other work sites in higher-wage cities, highlights the potential
dangers of a strict application of that rule. [See,
Appendix II, “Plea Agreement in H-1B
Criminal Case Raises New Worries About U.S. Crackdown on I.T.
Outsourcing”]
For longer-term assignments, where a complete itinerary
can be provided, the employer may continue to file an amended
petition for the H-1B worker along with a new LCA. These
new filings are now mandatory under the Neufeld memo for
any assignment lasting more than ten consecutive days, or more than
five days for roving H-1Bs.
Amended filings are also required if a normal H-1B worker is to
spend more than 60 days cumulative during the year at a client site
(this applies to normal workers on short-term assignments who
return to a permanent office). A new LCA filing is required for
“roving H-1Bs” without a permanent office who spend more
than five consecutive days at a particular client site or 30 or
more total days as a roving H-1B at a particular work site.
If the petitioning company is filing an amended H-1B petition to
allow the worker to carry out longer-term duties at a client site,
the employer must demonstrate that it maintains full control at all
times over the work of the employee. Demonstration to USCIS of that
factor can be difficult and complicated.
[This raises the question, how will USCIS, Consuls and
CBP deal with an H-1B employee who has in the past been assigned to
client sites for periods that exceed the letter of the
rule? A second, and related question, is how far
back will these agencies look for non-compliance, and how will that
impact the admissibility of the employee?
[See, Sidebar]]
As a general rule, voluntary disclosure of past
compliance errors is preferable to the making of any false
statement. This is a compliance issue that must be dealt by the
company in consultation with expert legal counsel.
Q. How will USCIS, Consuls and CBP deal with an H-1B employee
who has, in the past, been assigned to client sites for periods
that exceed the letter of the rule for short-term assignments and
“roving H-1B”?
A second, and related question, is how far back will agencies
look for noncompliance, and what impact does that have on the
admissibility of the employee?
Unfortunately, the answer to those questions is largely
conditional on the compliance history of the employer —
non-immigrants who work for companies that have been targeted for
serious compliance problems should be expect that they will be
looked at much more closely than those whose employers have no
serious problems, as evidenced by enforcement activity, program
debarment, high rates of visa denials and visa revocations.
Generally, inquiries are limited to the previous 3-year period, but
there is actually no binding rule or statute of limitations on
fraud investigations, particularly in LCA compliance issues
– such as benching, and underpayment — the
7th Circuit has found. See, Alden Management
Services, Inc. v. Chao, 532 F3d 578, (7th Cir.,
06/25/08 No. 07-2838)
A GREY AREA: TEMPORARY SWITCH OF H-1B
EMPLOYMENT TO A THIRD-PARTY CLIENT
In some cases, particularly for assignments lasting more
than 60 days, it may therefore be more practical for the client
company to directly hire that employee.
The H-1B employment may start work with a new petitioning H-1B
employer on the day the I-129 notice of receipt is obtained from
the USCIS Service Center where it was filed. Regardless of whether
or not that new petition is approved, it is completely legal for
the worker who is in lawful H-1B status to start work for a new
petitioning company the day the receipt is issued. That lawful
practice is known as “porting”, allowed under the INA
section and USCIS interpretation of regulation, below:
(11) H-1B Portability Provisions of INA §
214(n), AC21§ 105.
INA § 214(n), provides that a nonimmigrant who
was previously issued an H-1B visa or provided H-1B nonimmigrant
status may begin working for a new H-1B employer as soon as that
new employer files a nonfrivolous H-1B petition on the
nonimmigrant’s behalf, if:
- The nonimmigrant was lawfully admitted to the UnitedStates;
- The nonfrivolous petition for new employment was filedbefore the end of their period of authorized stay;
and
- The nonimmigrant has not been employed withoutauthorization since his or her lawful admission to the United
States, and before the filing of the nonfrivolous petition. In
order to port, an alien must meet all the requirements of INA
§ 214(n), including the requirement that the new petition must
be filed while the alien is in a “period of stay authorized by
the Attorney
General.” Cite as: USCIS Memoon AC21/ACWIA — Guidance for I-140 and I-129 H-1B
Petitions, and Form I-485 Applications (June 7, 2008), http://thevisabulletin.com/2008/ac21-acwia-memo-from-uscis-neufeld/
In the past, this approach of transferring employment directly
to the end-user client was more likely to succeed without USCIS
challenge (and attendant delays, and the real possibility of visa
denial). It is still legal for an end-user client to file a new
H-1B petition for the worker, and directly employ that worker.
However, this may raise issues related to the control over the
employee if payment of salary is provided out of funds in the
existing contractual or other provider-client relationship with the
worker’s current H-1B employer. USCIS may look at the terms of
continuing relationship that indicates co-employment, and is likely
to rule that the new petitioner does not have requisite
“control” over the H-1B worker, and may deny the
petition. Difficulty may also be encountered later, at the end of
the period of an assignment with the client, at which time the
original employer would be required to again petition for the
worker, if the beneficiary is to continue H-1B employment. An H-1B
employee who returns to the original employer at the completion of
an assignment at a client site may raise red flags that the
original petitioner is operating a “job shop”, a practice
that has been increasingly discouraged under the Neufeld
memo.
As with all matters involving compliance with complex regulatory
requirements, the employer should work closely with competent
immigration attorney before making any application for benefits
under the Immigration & Nationality Act.
The company that refers its own H-1B worker for subsequent
assignment at the work site of a client firm will be treated under
the law as a referring agency, and maintains a duty that the worker
maintains lawful immigration status.
Accurate and complete records showing maintenance of legal
status must be kept. That entails Due Diligence steps such as
keeping and maintaining legal contracts and accurate records
covering the company’s customer relationship with the client,
as well as the employer-employee relationship. These records should
include the maintenance of an up-to-date itinerary and
documentation of the employee’s actual place of employment, the
work performed, the dates (and hours) worked at any particular
site, the source and amount of all payments made to the employee,
and documentation or a descriptive record of the ongoing means by
which the employing firm maintains control over the work of the
H-1B employee. In addition, if these documents are to be
filed with USCIS as part of a possible renewal or other filing, a
copy of that same record should also be provided to the employee
prior to any international travel, even if the worker is returning
on the same visa.
Employees benefit from the H-1B visa program and as such must do
their utmost to safeguard and uphold the requirements with the
sponsoring company. If you are interested in obtaining more
specific information on the H-1B/ LCA requirements’ please feel
free to contact the author.
RELATED ISSUES: BAN ON SELF-EMPLOYMENT IN H-1B, L-1, AND O-1
CATEGORIES
Immigration practitioners have seen the spread of the Neufeld
“control” doctrine to other nonimmigrant classes and to
the I-140 context. About four years ago, we first saw AAO decisions
that in effect overruled the precedent decision, Matter of
Aphrodite, 17 I&N Dec. 530 (BIA 1980) (and 30 years of
other precedent decisions), in an L-1 context where the Director
owned both the petitioning company and its foreign parent or
affiliate.
Of course, these USCIS decisions defy the accepted definition of
affiliated, ie. two companies with a common owner. In recent years,
there have instances where the “control” doctrine has
been applied to deny petitions or visas to owner-directors of firms
where corporate papers do not make it clear that other partners or
Board members have the right to control the petitioner, and by
implication the company.
This interpretation has now spread from L-1 cases to H-1B, as
well as to some scattered O-1 petitions and First-Preference I-140
petitions.
With Neufeld memo, USCIS now demands evidence to prove
in all instances the percentage of ownership and other elements of
control in H-1B cases.
Furthermore, there is a threat for staffing firms that
use the one-person ‘corp-to-corp’ independent contractors
(“C2C” staffing model). Persons who have a long
history of self-employment as independent consultants, or who are
senior experts in their fields, need to be aware that the bona
fides of a claimed employment relationship may be challenged if
where there does not appear to be adequate evidence that the
petitioning company is actually employing the beneficiary.
Such a beneficiary may be questioned about
“accommodations” made by the petitioning firm, and the
applicant must be clear in indicating that he or she will, in fact,
be working under the control of the petitioning firm as an
employee, rather than with complete independence.
Self-employed consultants may still enter the U.S. on a
B-1 Visitors visa, or on a Visa Waiver, for legitimate short-term
business purposes such as consultations with clients.
However, they should be aware that any representations they made to
a Consul or at the border about self-employment may become an issue
later if that person is hired by a U.S. entity and is sponsored for
an H-1B, L-1 or O-1 visa. The burden is on the applicant to
overcome the bar on self-employment in those categories.
RELATED ISSUES: Elevated Standards for L-1B
“Specialized Knowledge”
In the case of L-1B “specialized knowledge” visas,
USCIS has taken a similar approach to implementing new policy
without publishing regulations. A number of recent AAO decisions
bearing on L-1B issues appear to contradict statute and previous
interpretation rendered by USCIS headquarters’ policy memos. As
with H-1B, the agency is again attempting to implement changes in
policy without promulgating formal regulations. In this case, the
policy is to deny L-1B petitions for most employees using informal
interpretation to reduce the potential pool of applicants. The
result of this is discourage all applicants for L-1B save an elite
few who can be shown to have high-level knowledge of proprietary
company-owned technologies, processes, or other closely-held
company information.
A recent Administrative Appeals Office (AAO) decision
contradicts the 1990 Immigration Reform and Control Act and
disavows guidance of the former INS Associate Commissioner, the
“Puleo Memo”, that had been in place as controlling
agency directive for some 15 years.
In effect, USCIS has abandoned post-1990 Act interpretations and
returned to the restrictive standards that it applied with the
original 1970 statute, which entails a much more stringent
definition of “specialized knowledge” and requirements
that the beneficiary hold a substantially higher level of
proprietary knowledge than I.R.C.A. mandates.
The issue of L-1B “specialized knowledge” increasingly
presents a problem in adjudications, at consular interviews, and
can even come up upon questioning at the Port-of-Entry. The
arriving L-1B visa holder may be questioned about his position
within the company and his background, with a particular focus upon
confirming that he or she, in fact, possesses an unusually high
degree of specialized knowledge about proprietary or closely-held
company technologies, processes or other specialized business
information, and is one of the few within the company with such
knowledge.
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Footnotes
1. See, http://www.uscis.gov/USCIS/Laws/Memoranda/2010/H1B%20Employer-Employee%20Memo010810.pdf
2. For a more in-depth discussion on the subject of
placement of H-1B workers at client sites, please see, https://employmentimmigration.com/publications/Is_IT_Consulting_Now_Illegal_for_H1B_Visas.pdf
3. For a discussion of the practical issues and
related Q&A, see, Rami Fakhoury on IT Immigration – The
Neufeld Memo</a>; the legal implications
of the Neufeld memo, see, The Neufeld H-1B Memo:
Legally Enforceable Policy Directive or Grounds for a
Lawsuit…
4. See, Matter of GSTechnical Services, Inc
(AAO, July 22, 2008) (unpublished), reproduced on AILA InfoNet at
Dec. No. 08081964 (posted Aug. 19, 2008)
5. Memo by James A. Puleo, Acting INS Exec. Assoc.
Comm’r, “Interpretation of Special Knowledge” (Mar.
9, 1994).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.