employers: what you must know to safeguard your business from costly h-1b visa violations
TRANSCRIPT
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Employers: What You Must Know to Safeguard Your Business From
Costly H-1B Visa Violations
Cowles & Thompson, PC
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Presenters
Ann Massey Badmus Attorney at Law
Thu T. Nguyen Attorney at Law
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Use your question or chat pane to type & send your questions.
Questions will be answered during the presentation and during the Q & A session.
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Enforcement and Investigation USCIS
•Surprise Site Visit •Petition Denial/Revocation
USDOL • Audit • Fines/Debarment
WHD •Complaint Investigation •Damages/Debarment
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Penalties
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H-1B Application Process
ETA9035 Labor
Condition Application
(LCA)
I-129 Petition for
Nonimmigrant Worker
I-797 Approval
Notice
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Employer • Use the official corporate name as shown on corporate
documents. • Use the federal employer identification number for the paying
entity. Employment • Prepare detailed job description. • Identify all work locations. Business • Track and identify number of H-1B employees. • Register for VIBE (recommended for small businesses)
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http://fedgov.dnb.com/webform
Validation Instrument for Business Enterprises (VIBE) Program
VIBE allows USCIS to electronically receive petitioning company information from D&B
Business activities Financial standing, e.g. credit rating Number of employees, both on-site and globally. Relationships with other entities Type of office, e.g. single office Type of legal entity. Company executives. Date of establishment Current physical address.
Cowles & Thompson, PC
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Critical timelines and deadlines
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February Prepare petition
April 1 Apply for
H-1B
April 7 Lottery cutoff
May 1 Acceptance or Rejection
Notices
July Decision Notices
2017 FY H-1B Cap Timeline
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H-1B Renewal Timeline
Employer must submit renewal petition before current H-1B visa expires. Employee can continue to work up to 240 days after H-1B visa expires as long as renewal petition filed timely.
Premium processing available
Recommended: Apply for six months before visa expires or request premium processing if H-1B approval is needed for driver’s license renewal, travel plans, or other reasons.
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H - 1 B A m e n d e d P e t i t i o n s
8 CFR 214.2 – amended petition required for any material changes. You must file amended petition before changes occur.
Change in number of work hours, i.e. full-time to part-time
Change in duties from one specialty to another (significant changes)
Change in place of employment requiring a new LCA per 22 CFR 655.734
Cowles & Thompson, PC
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Labor Condition Application Rules
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Wage Requirements
Employers must pay higher of actual or prevailing wage rate, pay for nonproductive time, and offer benefits on the same basis as offered to U.S. workers.
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Prevailing Wage Options
→Occupational Employment Statistics (OES) Survey – www.flcdatacenter.com
→USDOL Prevailing Wage Determination (safe harbor) – Form ETA9141
→Davis-Bacon, McNamara O’Hara Service Contract Act – www.wdol.gov
→Collective Bargaining Agreement (union contracts)
→Independent Survey – must meet specific DOL criteria
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Choose Prevailing Wage: • Occupational Class • Skill Level – I,II,III,IV • Geographic area of intended employment
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Actual Wage Documented wage paid to all other employees with similar experience and qualifications for the specific employment
• Experience and qualifications • Education • Job responsibility and function • Specialized knowledge • Legitimate business factors
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Wage Deduction Rules
Employers may not deduct its business expenses from employee’s wages
• ACWIA fee - $750 (25 or fewer employees) or $1500 (more than 25 employees)
• Anti-Fraud fee - $500 • Attorney fee, if such deduction would reduce salary below prevailing or actual wage
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Wage Deduction Rules
Employers cannot require repayment of petition costs or related business expenses upon employee’s termination of employment.
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Employer’s obligation to pay begins when the employee is available to work but no later than 30 days after employee enters U.S. with H-1B visa OR 60 days after H-1B validity date if employee is already in U.S. in H-1B status.
When is Payment Due?
Case Reference: Gabriele Wirth, M.D. v. University of Miami
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Employer must pay required wage for all nonproductive time related to employment caused by:
• Lack of work or client contract • Lack of licensing • Studying for licensing • Employer required training
Payment is not required for truly voluntary absences
When is Payment Due?
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Written notice to USCIS withdrawing H-1B
Offer of return transportation to depart the U.S.
Written notice of termination to employee
To avoid payment, bona fide termination required
When is Payment Due?
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Recordkeeping Rules
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Public Access File - LCA and other documents available for public access within one day of filing the LCA (required)
FDNS Audit File for Surprise Site Visits
(recommended)
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Certified LCA (ETA9035) Rate of pay for the H-1B worker Actual wage memorandum Prevailing wage determination Proof of LCA posting
Public Access File (PAF)
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Acknowledgement of receipt of LCA by H-1B employee
Summary of benefits offered to all workers
List of entities included as “single employer”
Public Access File (PAF)(cont.)
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Changes to employment conditions must be documented in the PAF, and must include: Copy of new LCA for new location(s) New rate of pay, actual wage memorandum,
proof of posting, employee acknowledgement of LCA, prevailing wage determination
Salary adjustments, e.g. cost-of-living, promotion to advanced level in same occupations
Public Access File (PAF)(cont.)
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Company merger or sale must be documented in the PAF: Sworn or notarized statement by successor accepting
all liabilities List of H-1B workers transferred to successor Each affected LCA number and effective date Description of actual wage system Successors employer identification number (EIN)
Public Access File (PAF)(cont.)
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Employers must keep the PAF: At employer’s principal place of business or at the employee’s worksite, and Throughout the term of the H-1B employee’s employment and one year after termination of employment.
PAF Retention Rules
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Maintain for USDOL (not disclosed to public): All documents included in public access file LCA receipt acknowledgement from H-1B employment Records showing wage rate for all other employees for the
specific employment at the specific place of employment Any documentation that supports the prevailing wage
determination Documentation on the offer of benefits Documentation on working conditions
Labor Condition Application (LCA) File
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How to Prepare for Government Audit of Your H-1B Records
Freedigitalphoto.net
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Thoroughly review the H-1B petition Conduct H-1B/LCA self-audit Inform your client of potential for site
visit if employee works at third-party location
Identify company representative(s) to meet with auditors
Establish procedures for reception and training
Preparing for an Audit or Surprise Site Visit
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Prepare Site Visit File Copy of H-1B petition including amended
petitions Employee W-2 forms, 3 months paystubs Previous approval notices, current
passport, current I-94, educational documents for employee
Current job description, record/itinerary of off-site assignments
Evidence of termination of employment, if applicable
Preparing for an Audit or Surprise Site Visit (cont.)
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Benefits of an Internal Audit
Identify correctable errors Ensure consistency and integrity of documents Prepare for USDOL or USCIS audit Reduce liability by showing good faith
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Public Access File for each occupation
Appropriate position classification
Correct prevailing wage/actual wage
Documentation of employment changes
Conducting an LCA Self-Audit
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Documentation of organization changes
Payroll records reflect compliant start date
Appropriate notifications/amendments to USCIS
Verify audit results with attorney
Conducting an LCA Self-Audit (cont.)
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Legal Notice
The information provided in this presentation is general in nature and should not be relied upon for specific situations. Because each case is different, you should consult with an experienced immigration attorney for your specific situation.
Cowles & Thompson, PC
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Cowles & Thompson, PC 901 Main Street Suite 3900 Dallas, Texas 75202
214-672-2000 Telephone
www.ctimmigrationlaw.com
www.physicianimmigration.com
Questions? Need more information and advice? Contact us at: